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works contract

Basavaraj (B.Com) (49 Points)

25 June 2017

what is the tax liability for land lord share which is remain un sold in works contract

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7 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (181044 Points)
Replied 25 June 2017

Liable to pay GST at 18% over remaining works

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Basavaraj (B.Com) (49 Points)
Replied 25 June 2017

thank u sir but ny question am builder registered under works contract my project construction of villas jointly with land lord our jd agreement is 50% each i have constructed 10 villas & i have sold all my share of 5 villas now am handing over land lord his share of 5 villa my question this handing over of completed villas of land lord shate attract GST....plz let me no sir because we taken credit of input on our purchase which we constructed land lord villa also...

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (181044 Points)
Replied 25 June 2017

Though the query is not very clear...........

But handing over of completed villas to any customer also will not attract GST.

And when you have already sold your share of 5 villas, any tax liability of completion of registration formalities will not attract any GST.

Be clear that if you have completion certificate of the project..... any transfer of any nature to whomsoever will be out of perview of GST.

Basavaraj (B.Com) (49 Points)
Replied 25 June 2017

sir i took itc on goods which i consumed for construction of land lord share if after project completed then as per u no gst then always my itc is excess only no its correct

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (181044 Points)
Replied 25 June 2017

I do not understand how you would have taken ITC, if availed abatement...........

Any way under GST ....... no tax liability over completed units............. & hence no ITC would be allowed......

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Basavaraj (B.Com) (49 Points)
Replied 25 June 2017

my query is simple
assume that u r a builder who will construct villas.
1) u entered joint development with a land lord on ratio of 50:50
2)when start construction process u r going to buy materials to entire project which Includes land lord portion which u r not selling customer just handing over to land as per JD agreement.
3)then process of handing over of land lord shares atrract gst if not wat abt itc taken on materials which u bought for constructing of land villas.
4)if avove process of handing over not attract gst then our input wil always high .this my doubt i hope u understand my query

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (181044 Points)
Replied 25 June 2017

Question of ITC arise only if you had filed returns of VAT and ST under current regime, and if the GST output tax was levied on completed villas............... neither of them seems to be affirmative.....