Just a moment...

Report
FeedbackReport
Welcome to TaxTMI

We're migrating from taxmanagementindia.com to taxtmi.com and wish to make this transition convenient for you. We welcome your feedback and suggestions. Please report any errors you encounter so we can address them promptly.

Bars
Logo TaxTMI
>
×

By creating an account you can:

Feedback/Report an Error
Category :
Description :
Min 15 characters0/2000
TMI Blog
Home /

Benefit of composition scheme cannot be denied on post-sale construction by dealers who are engaged in both construction and sale

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....enefit of composition scheme cannot be denied on post-sale construction by dealers who are engaged in both construction and sale<br>By: - Bimal jain<br>Value Added Tax - VAT and CST<br>Dated:- 20-11-2015<br><br>Omega Shelters (P.) Ltd. Vs. Assistant Commissioner (CT)(LTU), Hyderabad [2015 (7) TMI 230 - ANDHRA PRADESH HIGH COURT] Omega Shelters (P.) Ltd. and others ("the Petitioners"), engaged in ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....construction and sale of residential apartments executes conveyance deed of semi-finished apartments and completes remaining construction afterwards. The Petitioners opted to pay tax by way of composition under Section 4(7)(d) of the Andhra Pradesh VAT Act and have been paying VAT at 4%, 5% or 25% of the total consideration, on these components of the agreements, at the time of registration of the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... flats or soon thereafter. The Assessing officer denied the benefit of the Composition scheme on construction completed after execution of a registered sale deed. The Hon'ble High Court of Andhra Pradesh held that if dealers engaged in the construction and sale of residential apartments, houses, buildings or commercial complexes, exercise an option, and comply with the conditions stipulated in S....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ection 4(7)(d) of the Andhra Pradesh VAT Act and Rule made thereunder, they cannot be denied the benefit of composition scheme for the construction made by them, for the very same person, after execution of a registered deed for the sale of a semi- finished structure because the Petitioners were engaged in both construction and sale. Further, composition scheme is not dependent upon the stage of c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....onstruction when conveyance deed is executed, thus, entire construction would fall within the ambit of composition scheme.<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....