Menu
GST on services on redevelopment
when the free hold plot of the landlord is given to builder for redevelopment , who is offering services to whom.Plot owner to builder or builder to plot owner.In this case who are suppose to pay GST and on which items if owner is getting flat ,corpus ,rent and transportation from builder who will sell the extra flats without any financial investment from the owner of the plot.Thanks and. Regards.
Replies (1)
No GST liability on the land owner since he is essentially selling an immovable property, share in land. Hence, no GST. Also, this transaction in not in furtherance of business either
Whereas in the case of the builder, there are 2 transactions:
1. Construction - The sale consideration is equivalent to value of units obtained - GST applicable
2. Sale of Residential Units - GST applicable if advance received before completion. Otherwise its a sale of an immovable property not liable to tax.
Whereas in the case of the builder, there are 2 transactions:
1. Construction - The sale consideration is equivalent to value of units obtained - GST applicable
2. Sale of Residential Units - GST applicable if advance received before completion. Otherwise its a sale of an immovable property not liable to tax.
Recent Threads
- Foreign income and bank account
- Unorganised chit amount
- LTCG tax late payment interest
- Post pension deposit in Swiss account
- Max FD super senior citizen can make.
- Capital Gains Tax Bonds
- Timing difference in availment of ITC reporting in
- Import of goods and igst related
- DGFT licence port mismatch with Postal (PAD) impor
- Tax on sale property (Land)
Related Threads
CAclubindia
