Input On Real Estate on Transitional Provision.

ITC / Input 850 views 5 replies

Arup Ghosh

48 Points Posted on 07 June 2017

Query from Real Estate Organization

As per transitional provisions we can take input on Stock in hand as on 30.06.17 subject to invoice on that stock should not be more than 12 month and other rules may prescribe.

But my query is being a Real Estate Developer the entire Work in progress is stock in hand as semi finished flat. So in that case can we take the input on purchase of materials from last 1year which has used for Construction? or we can take only credit on the physical stock which are not used in construction like 500 bag cement , 50ton iron, Electrical fitting s etc.

Replies (5)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211715 Points Posted on 08 June 2017

Mostly real estate organizations had accepted abatement rate in ST or composition scheme in VAT, so they are not allowed to take any input credit on their inwards. So, the question of ITC on stock for them does not arise. Only very few who had assessed under normal scheme will be able to take ITC as per their last returns filed.

Sanjay Dugar

Chartered Accountant

206 Points Posted on 08 November 2017

Sir,

Just wanted to clarify why cant such real estate developer claim transistional input under section 140(6) even though they were paying VAT under composition scheme...

Arup Ghosh

48 Points Posted on 08 November 2017

Sir I wanted to say that , we are from west bengal here VAT not applicable on real estate .
so we was not registered under vat but registered under service tax. we take input on service tax. At present our building is under construction i.e CC not yet received. So entire building is my Stock as Working Progress.

So my question is should I take Transitional Input on material which was purchased during last 1 year before 1.7.17 and the material used for building construction ?

I yes the how I filed this in TRAN 1?

and How I utilities this credit??

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211715 Points Posted on 08 November 2017

@ Sanjay Dugar..............

Yes, you are correct, file trans1 and ask for the VAT credits........

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211715 Points Posted on 08 November 2017

@ Arup Ghosh:

Unless the output is GST liable, input ctedits will not be available...........

So, you will have to sell the stocks in trade before six months of appointed date i.e. by December end and before obtaining completion certificate. You will be required to charge 12% GST over your customers to avail the credits.

Fill form trans1 with all the bills as suggested in the link.......