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.
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