A (builder) entering in to a contract with B (customer) to build a flat for B for 30 lakhs as on 23-08-2015 & make payment but as on 24-08-2018 , the building sold to other party for 39 lakhs with the consent of B, what are the applicable tax provisions(Income tax/Service tax/Gst)??
if flat is ready to sell then GST will not attract.. as per schedule III of GST law, sale of building is not a supply.. and if consideration is given as advance for flat, GST will attract.. I think in given case income tax will applicable
A who is a builder entering in to a contract, to build a flat for B within a period of 3 year (as on 23-08-2015)& B made a payment of rs 30 lakhs in advance ..but as on24-08-2018 that flat transfer to another party (c) by A for 39 lakhs; with the consent of B & A refund to B 35 lakhs as on 24-08-2018..what are the tax provisions applicable in this situations & Tax applicable amounts
In this gst is not chargeable as it is prior to GST. Further if applicable it is exempt from GST as it is in exemption notification list as construction service is provided to an individual for an residential building. Further sale to C with consent of B is also outside the purview of GST. Here income tax is applicable as sale by B to C for a consideration provided indexation benefit calculated should be seen. Further How A can sell the flat of B. B is the owner of the flat. Hence the consideration shall be 39 lakhs.
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