22 May 2012
is tripartite collaboration agreement between the builder and the land owner to build house and receive a portion of flat in consideration is liable to DVAT, if yes what was the procedure to charge VAT and also specify if there is any judgement in this regard.
23 May 2012
Ms Monika Sharma, Around and in many large cities tripartite arrangements for building apartments are done.In this system initially an agreement will be entered into between the land owner and the builder.As per the estimated cost the builder agrees to hand over some completed flats to the land owner in lieu of the land cost.The builder also enters into contract with prospective buyers of flats.Here he executes civil work of constructing apartments at agreed price for both the buyers and the land owners.As he(the builder) receives payments or enters into agreements before and during construction WCT tax liability arises.Out of the total cost,land cost,labour and expences are deductible.On the balance amount VAT is payable at appropriate rates......MJK
CAclubindia
