Case Law Details
Case Name : In re Shri Sanjeev Sharma (AAR Delhi)
Related Assessment Year :
Courts :
AAR Delhi Advance Rulings
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In re Shri Sanjeev Sharma (AAR Delhi)
In the case of supply of services by way of construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier, the GST would be payable on two-third of the total amount consisting of amount charge
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RIDER
For a study, as suggested , of the scheme of things governing the AAR for income-tax in comparison to that for GST, if so care and mind to, may go through the published Article – (2008) 166 TAXMAN 72) – “TAX TREATIES AND AAR – A Critique”; in which the salient features of the scheme for income-tax have been set out, in details.
what is the gst % on builder invoice
Owing to some technical snag, it was truncated.
You are requested to substitute the Post; to read as under:
Q
<> Comments posted wrt several Articles on GST on the website of Taxguru
< Wherein it has been explained why a fixed '25 %' to be arbitrarily taken as deemed value of the land component, hence to be excluded for the levy, cannot be regarded to satisfy one of the four standard tests to have been squarely met for holding the constitutional vires of the impugned levy! KEY Notes: 1. The AAR seems to have,- rightly rejecting the applicant's plea (ref. para 17,18 )- taken a view to the effect that any such contract agreement between the promoter / vendor and the prospective purchaser(s) of the property, as envisaged by the law itself, is indivisible (refer para 19 and 20). Premised so, that makes for a clean departure; rather runs counter to, and adversely clinches the stance taken by the tax authorities in most of the court proceedings before. 2. Procedural Rules for the AAR >
https://taxguru.in/goods-and-service-tax/cbec-releases-updated-compilation-51-gst-flyers.html
In comparison to those in place for Income Tax, are noted to vary in certain material respects; and long winding. So much so are likely to defeat the basic objective (s) of the mechanism / prove counter -productive, as set out in the ‘ Introduction’
Offhand:
GIST of the RULING :
“….Hence, the value of land, or the undivided share of land, as the case may be, WOULD BE DEEMED TO BE ONE-THIRD OF THE TOTAL AMOUNT, WHICH IS EXCLUDED FROM THE VALUE FOR THE PURPOSES OF PAYMENT OF GST. EVEN IF AGREEMENT BETWEEN THE APPLICANT AND THE BUYER IS ENTERED AFTER PART OF THE CONSTRUCTION IS ALREADY COMPLETED, WHOLE OF THE CONSIDERATION WOULD BE ADDED FOR PAYMENT OF GST for the purposes of payment of GST. Even if agreement between the applicant and the buyer is entered after part of the construction is already completed, whole of the consideration would be added for payment of GST. The applicable rate of GST on the said two-third of total amount is 9% (CGST) and 9% SGST under S. No. 3(i) of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 and parallel SGST notification.”
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OVER TO- for an in-depth independent deliberation, by – eminent GST-cum-spl. state(s) property (FLATS?APARTMENTS) law PUNDITS,at large, in practice.
Attention may be invited to the personal thoughts /viewpoints shared in the two articles, lastly displayed @ –
1. https://taxguru.in/…/deeming-a-legal-fiction-service-tax-a-…
2. https://taxguru.in/…/deeming-a-legal-fiction-service-tax-a-…
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which might be found to serve the purpose of a useful BACKDROP !