Service tax on own land development

Abhishek P. Godha (Querist) 26 October 2016 This query is : Resolved
One of my client is having their own land. Now they want to developed the same and to sell the plots for general public. Could you please guide me in respect of service tax applicability and tax liability on that. if any.
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Rajendra K Goyal (Expert) 26 October 2016
Commercial query, discuss with tax consultant.

kavksatyanarayana (Expert) 26 October 2016
In which state? development charges, vat and service taxes are some different from state to state.

Guest (Expert) 26 October 2016
If he gives the contract to contractor then service tax will be applicable on it.

It is suggested he should give wages to labourers via Labour contractor (Because of complexity of labour law)

Additionally, I feel he should purchase material on his own name to avoid taxes and show it properly as expenditure on his personal balance sheet

The Proper person to guide will be Charter Accountant because CA deals with Taxation law routinely , Architect deals with Town Planing and related law , So everyone has its own specialisation in a specific subject.

Better approach CA who can guide to save taxes better.

But if Construction starts after 1 April then GST will be applicable because Finance Act 1994 (Which deals with service tax will be repealed )