If A (Land Owner) enters into contract with B (Builder/Developer) for development of a colony. B develops colony & incurrs all expenses for the same. Further, at the time of sale of houses A gives B 40% of sales consideration. Now, what will be Income Tax liability, Service Tax liability & Accounting entries in the books of both of them?
1 Replies
CA PRIYUL SHAH
(JOB)
(901 Points)
Replied 29 July 2014
It is Works contract.
So VAT & Service tax both leviable 60% & 40%
Tax Liability is as per profit sharing ratio
Recent Topics
- Excess itc claimed then intrest applicable even if
- Financing for Properties and Businesses
- TAX DEMAND STILL SHOWING ON INCOME TAX PORTAL, EVE
- FORM 10 IEA IN Revised return
- ITC Eligibility on GTA
- Top Highest Tax-Paying Celebrities: FY 2023-24
- Misplace society Bye law
- Submit ommited invoice of previous year
- Need your valueble insight
- GSTR-9 Invoices
Related Threads
CAclubindia
