<h1>Complex VAT and Service Tax Issues in Builders' Collaboration Agreements: Legal Challenges and Need for Reform.</h1> The article discusses the complexities of applying VAT and Service Tax to builders' collaboration agreements, where landowners (LO) offer land to builders/developers (BD) for constructing residential/commercial units. The article highlights the challenges faced by stakeholders, including landowners, builders, and tax professionals, due to unclear tax implications. It examines the legal precedents and interpretations of works contracts, particularly the Raheja and Larsen Toubro cases, and how these influence VAT and Service Tax liabilities. The article also explores different methods for calculating taxes under state VAT laws and the impact of service tax on construction activities, emphasizing the need for clarity and reform in taxation policies to prevent double taxation and ensure fair treatment of land values.