Land purchased being paid with consideration in kind
This query is : Resolved
28 November 2017
Our client has purchased a land, and, the owner of land is ready to accept 5 Flats from the complex being constructed as consideration. (Total Flats being 10, 5 to Owner of land, 5 Kept to self for Sale)
There is no cash being paid as consideration & land as per rules, is not taxable under GST but residential dwelling construction services are.
Can anyone please explain how will it be treated under GST?
There is no cash being paid as consideration & land as per rules, is not taxable under GST but residential dwelling construction services are.
Can anyone please explain how will it be treated under GST?
28 November 2017
12% GST applicable on builders sale of 5 flats including land cost.
18% GST applicable on land owner's 5 flats excluding land value.
When land owner sells the flat 12% GST applicable including land value. ITC can be claimed on 18% GST paid to builder.
18% GST applicable on land owner's 5 flats excluding land value.
When land owner sells the flat 12% GST applicable including land value. ITC can be claimed on 18% GST paid to builder.
28 November 2017
Thank You, Sir. All doubts cleared.
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