Dear Members,
a) Applicability of VAT ?
An Acers of land which is owned by the ABC & Co an partnership firm, which enters into contract with Mr X for development of such land . Like converting such land into sites which includes services like laying roads, water tank, street light ,necessary permission, etc.
Furthet Mr X will give sub contacr to Mr Y who does actual work.
After conversation, such site will be handed over to the ABC & co.
Expect considertaion in cash, No materials nor labour will be supplied by contractor to the contractee .
After conversation, such site will be sold by ABC & co to the individual buyer.
b) -- Definition of Works contract includes the words IMPROVEMENT , MODIFICATION .
-- Wether conversation of land into site will be considered as improvement / modification to know wether such service can be classified as works contact for applicability of VAT.
CAclubindia
