Building construction
This query is : Resolved
17 February 2024
Hi Assessee constructs residential property in hos own land and sells it. Can he file income u/s 44AD for the building sales
17 February 2024
No... He can't file this income under section 44AD.
17 August 2025
To strengthen the understanding:
Builders must ensure at least 80% of inputs and input services are sourced from registered suppliers. Any shortfall incurs 18% GST under RCM.
Cement procurement from unregistered persons automatically triggers 28% GST under RCM, regardless of the 80% rule.
Capital goods acquired from unregistered persons also attract RCM billing.
Development rights, FSI, and long-term land leases provided to a promoter are taxable under RCM through separate entries.
Construction services—the erecting of a building intended for sale—are generally GST liable @18%, with an effective rate close to 12% when valuing land correctly.
Builders must ensure at least 80% of inputs and input services are sourced from registered suppliers. Any shortfall incurs 18% GST under RCM.
Cement procurement from unregistered persons automatically triggers 28% GST under RCM, regardless of the 80% rule.
Capital goods acquired from unregistered persons also attract RCM billing.
Development rights, FSI, and long-term land leases provided to a promoter are taxable under RCM through separate entries.
Construction services—the erecting of a building intended for sale—are generally GST liable @18%, with an effective rate close to 12% when valuing land correctly.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- PPF interest-As Exempt Income disclosure
- Scrutiny and reopening of past returns
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- Type of Capital Gain
- Booth for sales promotion
- F & O PROFIT REPORTING FOR AY 2026-27
- LIABILITY ADJUSTMENT
- Average Cost Of High Quality Diamonds
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
