construction contract

Revised Accounting Standard 7 – ‘Construction Contract’ is applicable to only contractors and not to builders and real estate consultants. Accordingly, the Project Completion Method consistently followed by the taxpayer for recognising revenue in the books of accounts cannot be regarded as an unreasonable. Recently, the Mumbai bench of the Income-tax Appellate Tribunal (the Tribunal) has held that the Accounting Standard (AS) 7 – ‘Construction Contract’ (re.. Full Article

The definition of ‘sale’ as per the Maharashtra Value Added Tax (MVAT) Act, 2002 was amended w.e.f. June 20, 2006 so as to include, inter alia, agreement for construction of immovable property, for levy of tax on transfer of property in goods involved in the execution of such works contract. This amendment was made consequent to the Supreme Court decision in the Raheja case 141 STC 298 (SC) . Full Article