Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Purchase of Flat

06 April 2018

I have booked flat on 13/02/17,now the builder is asking for Service tax & Vat @ 6% for the amount paid before 30/06/17 and GST on the balance payment @ 12%. what is the law.

Reply
Follow
Share

1 Replies

CA Aravind Penugonda (Chartered Accountant) (311 Points)
Replied 06 April 2018

Hi Nikunj Jain,

Under ST, Point of taxation is earlier of date of receipt or date of invoice or date of completion of service. Accordingly, to the extent of amount paid for flat before 30th June 2017, ST is payable

Whereas under VAT, Point of taxation is at the time of registration of flat. However, a circular has been issued under VAT in Jun/Jul'17 asking assessees to pay tax on advance receipts received prior to 1st July 17.

You are aware that GST has been rolled from 1st July 17 wherein it states that point of taxation is earlier of date of receipt or date of invoice or date of completion of supply. (implied meaning) Further, for supplies made on/ after 1st July 17, only GST shall be levied. Accordingly, GST is liable on the amounts paid after 1st July 2017.

Hope it is clear!!

1 Like