04 September 2013
A builder acts as a contractor for the units given to the land owner. He has constructed the flats given to the land owner and received land equivalent to the money receivable.If the value of land and the flats exchanged are not mentioned in the agreement,it is to be determined as per rates of units sold to others or as per the market value of land.The builder has to meet all the tax liabilities(VAT,ST etc).These amounts are to be declared in his monthly returns and taxes are to be paid.Construction of these flats are to be taken as works contract only,although no money was received as advances and the flats were handed over after completion because an agreement was entered into by the two parties before commencing the works....mjk
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