Service tax & vat upon developers

md shakil (professional) (289 Points)

01 February 2012  

sir,

I have a client who is an architect engineer involved in construction of residential buildings alongwith shops.

He undertakes different plot of lands at different locality with an agreement to construct  buildings  and sale the flats and shops as per his will and wish by sharing the profit with the land lord.

* he uses his skill as an architect for constructing the building with some labour contractors.

* while construction he uses all the materials for his capital.

* The flats are booked by different people when the construction is in progress, as per specification about the flat is given by the architect.

* The architect is constructing the building as follows:-

1. Building A:    consisting of 14 residential flats and 6 shops

2. Building B:    consisting of 10 residential flats and 4 shops

3. building C:   consisting of 12 residential flats only.

Plz advice whether service tax and /or VAT/works contract is applicable or not.If applicable say the easy process.

Regards

CMA.Md.shakil