Since the applicant has exercised option for paying tax at the rate as specified in Item (if) of S1 No. 3 of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 03/2019 Central Tax (Rate) dated 29.03.2019 in respect of the ongoing project “VRINDHAVAN”, the old rate of tax at 18% with input tax credit is applicable for all the apartments / villas comprised in the project- “VRINDHAVAN”.
Authority for Advance Ruling —Taxability on community villa projects – The applicant is a partnership firm engaged in promotion of gated community villa projects in the State of Kerala for the prospective villa buyers. They are having several projects out of which one project is “VRINDHAVAN” (all units in this project are “other than affordable villas”) in which there are 20 units. Out of the 20 units, 9 units were already booked and got approval for villa before 31.03.2019 and the balance 11 units in that project were unbooked and have not got the approval for villa from local authorities before 31.03.2019. The applicant sought an advance ruling as to whether the new tax rate of 7.5% (effective rate of 5% after excluding land portion), with no ITC, is applicable to the 11 unbooked units in the said VRINDHAVAN project; whether the answer given for the first question to 'VRINDHAVAN project is also applicable to other similar projects in similar situations.
Held that:- The Hon’ble Authority for Advance Ruling held that since the applicant has exercised option for paying tax at the rate as specified in Item (if) of S1 No. 3 of Notification No. 11/2017 CTR dated 28.06.2017 as amended by Notification No. 03/2019 dated 29.03.2019 in respect of the ongoing project “VRINDHAVAN”, the old rate of tax at 18% with ITC is applicable for all the apartments / villas comprised in the project- “VRINDHAVAN”. This answer is applicable to the other similar projects of the applicant in similar situations.
Since the applicant has exercised option for paying tax at the rate as specified in Item (if) of S1 No. 3 of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 03/2019 Central Tax (Rate) dated 29.03.2019 in respect of the ongoing project “VRINDHAVAN”, the old rate of tax at 18% with input tax credit is applicable for all the apartments / villas comprised in the project- “VRINDHAVAN”.
Authority for Advance Ruling —Taxability on community villa projects – The applicant is a partnership firm engaged in promotion of gated community villa projects in the State of Kerala for the prospective villa buyers. They are having several projects out of which one project is “VRINDHAVAN” (all units in this project are “other than affordable villas”) in which there are 20 units. Out of the 20 units, 9 units were already booked and got approval for villa before 31.03.2019 and the balance 11 units in that project were unbooked and have not got the approval for villa from local authorities before 31.03.2019. The applicant sought an advance ruling as to whether the new tax rate of 7.5% (effective rate of 5% after excluding land portion), with no ITC, is applicable to the 11 unbooked units in the said VRINDHAVAN project; whether the answer given for the first question to 'VRINDHAVAN project is also applicable to other similar projects in similar situations.
Held that:- The Hon’ble Authority for Advance Ruling held that since the applicant has exercised option for paying tax at the rate as specified in Item (if) of S1 No. 3 of Notification No. 11/2017 CTR dated 28.06.2017 as amended by Notification No. 03/2019 dated 29.03.2019 in respect of the ongoing project “VRINDHAVAN”, the old rate of tax at 18% with ITC is applicable for all the apartments / villas comprised in the project- “VRINDHAVAN”. This answer is applicable to the other similar projects of the applicant in similar situations.