Vat & service tax
Querist : Anonymous
i am working with pvt company in karnataka.now along with my freinds planning buy 18 cents land to construct 12 or 14 flats by aapointing good contractor.
i have few doubts with regard to tax implication on this .
1.as per my knowledge , we need to pay stamp duty only on purchase of land. request your confirmation.
2.kindly confirm whether VAT and service liablity will come to us ..if no.of flats 12 or 14.
3 . is it required to form society first then proceed with the plan.
4.Request your idea for this plan to execute in more better manner.
Thanks and Regards
Nagesh
Mangalore
When a person enters into a composite works contract involving both materials and labour, which cannot be easily bifurcated, VAT is Applicable on 67% of the contractors' bill and service tax on 33% of the contractors' bill.
On sale of the flats, service tax is applicable on the payments received from the buyers, whether as advance or otherwise, till the Completion Certificate is obtained from the municipal authorities. All considerations received thereafter will be free of service tax.
The sale agreement with the flat owners should be for a price inclusive of the pro-rata land value transferred to each flat owner.
The rate of service tax if the cost of each flat is below Rs.2 Crore and the area of each unit is less than 2000 sq.ft will be 3.09% of the sums received and if the above two conditions are not there then @ 3.708%.
The requirement to form a society is optional. A society is usually formed of all the prospective owners so that the transfer of property after completion is done smoothly and the promoter does not have to run in all directions to realize his dues.
Querist : Anonymous
Querist : Anonymous
Click here to login now
Similar Resolved Queries
- Tax on capital gains revoked us 54f
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Refund of AY 22-23
- HSN Details in IFF/GSTR-1 & in GSTR 9
- Inventory of finished goods
- TDR receipts for agreement holder
- Company Incorporation - CA and directors signing from different states
- Sale of property furniture sale
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Filing of Form 10BB instead of Filing Form 10B
- Refund AY 2012-13 and 2013-14
- DIRECT TAX CODE 2025
- MODEL FILLED AUDIT REPORT FOR TRUSTS IN FORM 10B
- 115TD on cancellation of 12A 80G Registration
- MIS MATCH OF INVOICE NUMBER
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- CASE INTIMATION OF LIABILITY UNDER SECTION 73(5)(Rule 142(1A)
Trending Online Classes
CAclubindia
