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.
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.
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