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?
It is Works contract.
So VAT & Service tax both leviable 60% & 40%
Tax Liability is as per profit sharing ratio
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