30 November 2007
If L&T RMC sells RMC to a Developer, who is selling the structure (no separate billing for various components), is the Developer eligible to claim input tax credit?
We were told this is possible, but have recently received inputs saying it is not possible.
We are looking at the following states - WB, Maharashtra, Rajasthan, AP, TN, Punjab, Goa
30 November 2007
The question is whether the sales of structures come under the purview of sales under VAT Act? Immovable property doies not fall under the category of goods, hence out of the purview of Sales under VAT Act. No ITC.
However, if the developer is a works contractor, and is liable to pay taxes on transfer of property ofgoods in execuition of woks contract, ITC should be available unless the Developer is registered under composite scheme.
CAclubindia
