One of My Client under Proprietorship concern is engaged in construction of independent Tenaments/Row Houses as Developer.The total Number of Such Houses are 8(i.e. less than 12 Residential Houses). the Constructed cost comes to Approx. Rs 8 Lacs. There is a development Agreement between Developer & each member through notarised Documents. The Land is acquired by each member seperatelty by way of sale deed between landowner & Member himself.
My query is whether the said activities are subect to Service Tax or Vat Or Both. If Yes then under which head & what tax rate willbe as far as my client is concerned as Developer.
Regards.
CA Sanjay Baheti