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Regarding construction of apartments

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tejaswi nooli

54 Points Posted on 20 June 2020

who opts 1% scheme, for calculating 80% procurement of inputs and input services which expenses should be included for this purpose

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Quick Summary

This discussion clarifies the 1% scheme for apartment construction, focusing on calculating the 80% procurement of inputs and input services. It details which expenses, such as bricks, marble, and labour supply services, are included. The thread also highlights that tax on cement purchased from unregistered dealers is paid under the Reverse Charge Mechanism (RCM) and directs users to relevant notifications and FAQs for further information.

Hemal Makwana

Designation

384 Points Posted on 21 June 2020

Pls. refer notification no. 3/2020- central tax rate.. it's explained with the help of examples

Shivam RC

Student

7666 Points Posted on 21 June 2020

Inputs like Bricks, Marble, Granite, Roof tiles, Natural Sand, Glass for construction purposes, etc.

Input Services like Labour Supply Services, Rent of DC Generator Services, GTA etc.

However, Tax on Cement ( Portland/Slag Cement ) purchased from an Unregistered Dealer shall be paid @ 28% under Reverse Charge Mechanism ( RCM ) basis. [ Section 9(4) ].

Refer Notification No. 7/2019 - Central Tax ( Rate ), dated 29th March 2019 to know more regarding RCM for 80% criteria.

Also a series of FAQ's was released by CBIC on 7th May and 14th May 2019 regarding the New Scheme of Real Estate Sector.

Regards,
Shivam RC.