MP (employed) (53 Points)
20 January 2018A builder has some amount receivable from some of his customers to whom he has sold flats.
Earlier he has been collecting service tax from buyers. After GST should GST @ 12% be collected from them? The project is over and there are no costs for Fy 2017-18. So there is no question of claimimg input benefits of GST. If the builder collects GST, will the Anti Profiteering rules be applicable?
Thanks
RAMESH KUMAR SINGLA
(PROFESSIONAL)
(1777 Points)
Replied 20 January 2018
when the project is completed? is it prior to the advetnt of GST? Secondly, whether completion certificate has been taken? THirdly, whether the payment has been received or the same is still shown as receivable in the account books? pL give little more details of the problem.
MP
(employed)
(53 Points)
Replied 20 January 2018
Thanks for the reply.
Project completed on say 31/3/17 Closing stock was zero and all flats shown and taxed as sale under income tax. It is a partnership.
Amount of about 1,40,00,000 shown as receivable in balance sheet as some buyers have not yet paid some amounts, most sale deeds done before 31/3/17.
Project completion certificate taken 31/3/17 but service tax was applicable as all the customers had paid advance before completion.
RAMESH KUMAR SINGLA
(PROFESSIONAL)
(1777 Points)
Replied 20 January 2018
MP
(employed)
(53 Points)
Replied 20 January 2018
If any consideration is received before completion certificate, Service tax is applicable. In the current case, The buyers have been paying amounts before completion. Completion certificate is recd only on 31/3/17
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