construction of residential house property

Others 5128 views 9 replies
If a contract for construction of residential house property is given, whether this transaction will be covered under GST?
Replies (9)

Yes , it's cover under GST ,.. the contractor is liable to charge GST on his bill to owner

Yes as per notification 12/2017 Services by way of pure labour contracts
of construction, erection, commissioning,
or installation of original works pertaining
to a single residential unit otherwise than
as a part of a residential complex Is EXEMPTED

So only in case of pure labour it's exempted

Thank you very much sir for your reply so if all the material and other required stuff is purchased by owner and supplied it to the constructor for doing construction then it's exempt and if contract is for full payment against material plus labour and all the purchases made by contractor then it's taxable, Am I right sir? Please reply just want to confirm
... and if second is the case whether full amount is taxable or only labour portion and at what rate? please guide...

DEAR RAJ

IN CASE WHERE MATERIAL SUPPLIED BY OWNER

FROM WHOM THE OWNER WILL PURCHASE THE CONSTRUCTION MATERIAL THE SUPPLIER WILL CHARGES GST THEREIN , IN THIS CASE  CONTRACTOR WILL ISSUE ONLY BILL FOR LABOUR WHICH WILL BE EXPEMPTED (HE WILL NOT CHARGE ANY GST)

 

IN CASE WHERE MATERIAL & LABOUR BOTH SUPPLIED BY CONTRACTOR

IN THIS CASE THE CONTRACTOR WILL CHARGE GST ON LABOUR + MATERIAL TO OWNER

 

NOTE :SO ITS BETTER IF OWNER WANTS TO SAVE GST ON LABOUR PART THEN SUPPLY MATERIAL TO CONTRACTOR & TAKE ONLY LABOUR SERVICE FROM HIM

Thank you very very much sir for your detailed answer, sir now please guide me for one practical issue that is an assesse who wants to build one residential house property for his own use by taking loan from bank and contract is that material will be supplied by owner to contractor for construction but here arrangement is that bank will give amount of loan directly to the contractor and contractor will reimburse the amount equal to material supplied to owner by keeping amount only for labour charges, now in this case what will be the consequences whether it will be treated as Full contract that is material + labour or only labour contract? I am confused because full amount is transfer to contractor but original intention is to give labour contract.... Please guide what will be the consequences?

IN THIS REGARED NOTHING CAN BE DONE,.....YES YOU CAN CHANGE THE BANK WHO GIVES THE CHQ. IN OWNER NAME, THATS ONLY I CAN ADVICE

Thank you very much sir for support...

YOU ARE ALWAYS WELCOME

Can you clarify residential flat 4 nos constructed by JV is it taxable under gst

If family takes friendly loan to build residential house for own use but sells one flat to repay the loan to cover the cost of building the house and uses labour service only of contractor what is tax impact?


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