Tax on developers
JAYANTA ROUTH
(Querist) 30 March 2014
This query is : Resolved
SIR,
I AM GOING TO PURCHASE A RESIDENTIAL DUPLEX FROM A DEVELOPER COMPANY (PVT LTD) IN WEST BENGAL THEY ARE PLANING TO SELL THE DUPLEX AS PER FOLLOWING TERMS AND CONDITIONS :-
25% CONSIDERATION FOR LAND VALUE, LAND WILL BE REGISTERED IN MY NAME.
25% CONSIDERATION FOR LAND FILLING AND COMMON INFRASTRUCTURE, PAYMENT MUST BE CLEARED BEFORE REGISTRATION OF LAND
50% CONSIDERATION FOR CONSTRUCTION OF DUPLEX AFTER REGISTRATION, ALL THE MUNICIPAL PERMISSION ETC WILL BE IN MY NAME.
MY QUESTION IS :
A) IS SERVICE TAX APPLICABLE ON TOTAL 100% CONSIDERATION ?
B) IS WORKS CONTRACT TAX / VAT TAX IS
APPLICABLE SINCE AGREEMENT SHOWING CONSIDERATION FOR CONSTRUCTION SEPARATE ?
C) IF VAT / WORKS CONTRACT TAX APPLICABLE THEN COMPANY NEED TO PAY SERVICE TAX ON THAT AMOUNT ALSO ?
ajay sethi
(Expert) 30 March 2014
your CA will be in psotion to guide you in this regard . before purchase of any property do check whether title is clear and marketable
Rajendra K Goyal
(Expert) 30 March 2014
Consult your tax consultant for working out tax liability. service tax is not payable on whole consideration.
krishna mohan
(Expert) 01 April 2014
A) IS SERVICE TAX APPLICABLE ON TOTAL 100% CONSIDERATION ? .. NO AS 25% DEEMED TO BE FOR LAND REGISTRATON
B) IS WORKS CONTRACT TAX / VAT TAX IS
APPLICABLE SINCE AGREEMENT SHOWING CONSIDERATION FOR CONSTRUCTION SEPARATE ? YES .. YOU CAN ASK THE BUILDER TO PROVIDE AGREEMENT AND CONSULT CA/LA
C) IF VAT / WORKS CONTRACT TAX APPLICABLE THEN COMPANY NEED TO PAY SERVICE TAX ON THAT AMOUNT ALSO ? ST PAYABLE FOR SERVICES ONLY
YOU MAY ASK THE BUILDER TO PROVIDE YOU AGREEMENT AND RATE OF TAX PAYABLE AND CONSULT CA ON TAX MATTERS
