Harshita (CA FINAL STUDENT) (116 Points)
09 February 2013DEAR SIR,
A PRIVATE COMPANY IN RAJASTHAN SOLD A PLOT OF LAND AND ALSO CONSTRUCTED A RESIDENCE FOR THE BUYER... IT WAS A SINGLE RESIDENTIAL BUILDING ... (THERE IS NO OTHER CONSTRUCTION WORK DONE BY COMPANY FOR OTHERS)
COST OF PLOT IS RS. 5 LACS AND CONSTRUCTION CHARGES RS. 15 LACS.. TOTAL AMOUNT RECD IN ADVANCE RS. 20 LACS FROM CUSTOMER..
PLEASE LET ME KNOW WHETHER SERVICE TAX AND/OR VAT (RAJASTHAN) IS APPLICABLE ON THIS TRANSCATION
THANKS
CA vaibhav
(no)
(111 Points)
Replied 09 February 2013
| Originally posted by : Harshita | ||
 |
DEAR SIR, A PRIVATE COMPANY IN RAJASTHAN SOLD A PLOT OF LAND AND ALSO CONSTRUCTED A RESIDENCE FOR THE BUYER... IT WAS A SINGLE RESIDENTIAL BUILDING ... (THERE IS NO OTHER CONSTRUCTION WORK DONE BY COMPANY FOR OTHERS) COST OF PLOT IS RS. 5 LACS AND CONSTRUCTION CHARGES RS. 15 LACS.. TOTAL AMOUNT RECD IN ADVANCE RS. 20 LACS FROM CUSTOMER.. PLEASE LET ME KNOW WHETHER SERVICE TAX AND/OR VAT (RAJASTHAN) IS APPLICABLE ON THIS TRANSCATION THANKS |
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this complete contract of 20 lac shalll be treated as construction contract as amount of construction is too high and service tax shall be charged...
Harshita
(CA FINAL STUDENT)
(116 Points)
Replied 09 February 2013
but sir,
agreement with the client was to sale the plot of land only after house constructed upon it..
also advance of total sale consideration was received a year ago..
company is also not covered in complex construction as below 12 units.. and it is just a single case of construction..
company just sold the land by patta sale instead of registry sale of the plot
please reply
Madhukar N Hiregange
(Chartered Accountant)
(38934 Points)
Replied 10 February 2013
No service tax for individual house as long as it isnot part of complex [ 12 units] before 1.7.2012.
After than if more than 1 residential unit.
VAT is payable on the value of material transferred in the works contract under composition shceme or regular sche as per option of contractor.
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