Sales tax

This query is : Resolved

Krishnan (Querist)
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25 February 2014 Dear Sir,

we are builder in madurai., We have constructed in apartment in Joint venture basis for the ratio of 60%( Builder ) and 40% ( land owner).

Now we have pay the sale tax on good consumed + 15% GP and what ever tax 5% or 14.5% we pay the tax and take the input credit also.

We have pay the sales tax on entire construction.

In this method

1. this is correct method or not?
2. suppose if any other method suggests?

sandesh mundra

sandesh mundra (Expert)
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25 February 2014 What you are doing is a Joint Development Agreement. So 40% of the flats are not being sold but given to Land owner, on which there is a dispute going on at Karnataka High Court. For the balance construction, you can follow the method as you have mentioned, but you need to consider only 60% of the purchases for both tax calculation as well as input credit.
Further you Balance sheet at the end of the year should also mention GP around 15%