Hi,
Is service tax and vat(works contract tax) applicable in the following instance.
a project for redevelopment of existing society with following terms :
1. builder may or may not provide extra area to current members of the society.
2. builder will complete work by eploying labour by himself i.e.. no contract work will be given.
3. he will purchase extra T.D.R. (may be in his name or societys name?) and develop extra area which he will sell to prospective buyers.
4. he will receive no consideration from current members for redevelopment.
5. the prospective memebrs will be admitted to the existing society as menbers.
6. builder will enter into "Agreement for Sale" with the prospective buyers.
whether service tax and vat will be applicable on above.
CAclubindia
