SERVICE TAX ON UNDER CONSTRUCTION FLATS
This query is : Resolved
CA AYUSH WADHWA
(Querist)
05 October 2010
PLEASE GUIDE ME WHETHER SERVICE TAX WOULD BE CHARGED ON UNDER CONST FLATS IF SOLD TO SOME ONE AND ALSO IF FULLY CONSTRUCTED FLATS ARE SOLD TO SOME ONE ALSO I AM CONFUSED IF WCT IS APPLICABLE ON BUILDER THEN THE WCT REGISTRATION IS TO BE DONE UNDER VAT OR SERVICE TAX...?
Shyam Lal Naik
(Expert)
05 October 2010
Service tax is applicable on receipts against flats for which completion certificate is not obtained prior to such receipt.
For fully constructed flats, for which completion certificate has been obtained, receipts are not taxable.
The Works contract of construction is taxable both under the state VAT laws as well as Service Tax Laws. You need to take registration under both.
For fully constructed flats, for which completion certificate has been obtained, receipts are not taxable.
The Works contract of construction is taxable both under the state VAT laws as well as Service Tax Laws. You need to take registration under both.
Message likes :
1 times
CA AYUSH WADHWA
(Querist)
05 October 2010
but sir when vat is not applicable on sale of immovable property why i need to register under vat for wct also tell me whether vat is chargeable on construction material bricks , tmt bars etc ???
Shyam Lal Naik
(Expert)
07 October 2010
It is true that VAT is not applicable on sale of immovable property.
However, transfer of goods(bricks etc. as mentioned by you) involved in the execution in the works contract is treated as sale for the purpose of VAT under clause 29A of article 366 of the Constitution.
In view of the above, works contract is a deemed sale for the purpose of VAT laws.
However, transfer of goods(bricks etc. as mentioned by you) involved in the execution in the works contract is treated as sale for the purpose of VAT under clause 29A of article 366 of the Constitution.
In view of the above, works contract is a deemed sale for the purpose of VAT laws.
Message likes :
1 times
CA AYUSH WADHWA
(Querist)
07 October 2010
sir thanks a lot!!
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
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Transfer of Physical Stock Between Two Proprietorship Concerns
- MSME disclosure and disallowance
- Taxation of crypto futures in India Fy 2026- 2027
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
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
