CA Rajdeepsinh Kanchava (Senior accountant at KPO) 11 March 2013
Greetings of the day to all the CCI Members.
If a Contractor Receives the Consideration for the Construction Service Provided by him in the form of Fixed Deposite (Before the issuance of Completion Certificate ) then would this FD amount be taxable or the Interest only be Taxable or both??????
Thanks in Advance.
Vikas (CA) 11 March 2013
A similar example has been provided in the Education Guide issued as on 20/06/2012.
According to me, the amount charged would be the FD amount as it is the consideration transferred from transferee and not the interest.
Refer, Sec.67 of the Act.