TMI BlogApplicability of GSTX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear sir, Applicant has given sum loan to the builder in the year 2020. Builder purchased a piece of land in the year 2021and completed the Construction in the year 2022 received OC from competent authority, now the the applicant wants to take a flat from the builder by paying the balance amount to the builder. Will there be GST applicability to the applicant please clarify. - Reply By Shi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lpi Jain - The Reply = Was interest paid by the builder during the period the loan was granted? - Reply By Bharat Cholleti - The Reply = Dear Shilpiji, Thank you, What are the consequences interest paid or not paid in relation to the loan - Reply By Shilpi Jain - The Reply = In case interest has not been paid then it could be regarded that the amount paid is not a loan but actually only an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advance which is named as a loan. There could be thus a dispute from the department. - Reply By Amit Agrawal - The Reply = Essentially, one needs to look at actual nature of transaction ...... If same was genuinely loan transaction NOT 'an advance for property but camouflaged as loan' and sale of property transaction is completely independent of loan transaction, then, gst will not app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly. Department will always look such transaction/s with suspicion (as same can be 'camouflage' for tax-evasion). These are ex facie views of mine and the same should not be construed as professional advice / suggestion. - Reply By Padmanathan Kollengode - The Reply = As discussed by experts, the whole issue will depend on the actual facts and circumstances. 1. Is there any docum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent/agreement evidencing the loan in 2020? 2. It the amount accounted as loan advanced in books of the applicant and loan availed in books of the builder? 3. Is any interest paid? if so TDS under 194A deducted? If the answer to all or most of the above question is NO, then it would be a difficult proposition in my humble opinion. - Applicability of GST - Query Started By: - Bhara ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Cholleti Dated:- 7-2-2023 Goods and Services Tax - GST - Got 5 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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