TMI BlogWorks Contract for construction of Flats, Complex — Builders to pass on GST benefit to buyer otherwise anti-profiteering provisions of Section 171 of GST Act to applyX X X X Extracts X X X X X X X X Extracts X X X X ..... Dated 15/06/2017 The C.B.E. C. and States have received several complaints that in view of the works contract service tax rate under GST at 12% in respect of under construction flats, complex etc., the people who have booked flats and made part payment are being asked to make entire payment before 1st July, 2017 or to face higher tax incidence for payment made after 1st July, 2017. This is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n constructed flats, etc. 3. As a result, incidence of Central Excise duty, VAT, Entry Tax, etc. on construction material is also currently borne by the builders, which they pass on to the customers as part of the price charged from them. This is not visible to the customer as it forms a part of the cost of the flat. 4. The current headline rate of service tax on construction of fl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut tax credits to the builder has been disallowed. 6. The builders are expected to pass on the benefits of lower tax burden under the GST regime to the buyers of property by way of reduced prices/installments. It is, therefore, advised to all builders/construction companies that in the flats under construction, they should not ask customers to pay higher tax rate on installments to be rece ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
