Very urgent : service tax and vat applicability

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

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...

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

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.