Time of supply and point of taxation with respect to flats allotted to land owner by the builder
Authority for Advance Ruling — Construction Services – The applicant is a providers of taxable services of construction of residential complexes. The applicant has entered into a supplementary agreement with land owner on 15.05.2017 duly fixing the total number of flats to be shared with the land owner, prior to the introduction of GST. The applicant submitted Time of supply and point of taxation with respect to flats allotted to land owner by the builder by way of supplementary agreement on 15.05.2017 (i.e., before GST regime) where as the construction will be completed during GST regime. The applicant sought an advance ruling as to whether this date to be concluded as the date of allotment for payment of service tax in respect of construction services provided to landlord ignoring the fact that the construction was continued subsequently from May, 2017 to November, 2018; will it be sufficient and adequate compliance, if the appellant complies law and remit entire service tax on the entire area earmarked to landlord; what is the ‘Constructed complex’ referred to in the concerned notification.
Held that:- The Hon’ble Authority for Advance Ruling held that as per Notification No.4/2018 dated 25.01.2018 the date of transfer of possession of the building or the right in it to the person supplying development rights will be the time of supply and the liability to pay tax on the said services shall arise on that day. The time of supply shall not be at any other time. The applicant has to pay tax as per the time of supply indicated above. Constructed complex’ refers to a building or a completed structure.
Time of supply and point of taxation with respect to flats allotted to land owner by the builder
Authority for Advance Ruling — Construction Services – The applicant is a providers of taxable services of construction of residential complexes. The applicant has entered into a supplementary agreement with land owner on 15.05.2017 duly fixing the total number of flats to be shared with the land owner, prior to the introduction of GST. The applicant submitted Time of supply and point of taxation with respect to flats allotted to land owner by the builder by way of supplementary agreement on 15.05.2017 (i.e., before GST regime) where as the construction will be completed during GST regime. The applicant sought an advance ruling as to whether this date to be concluded as the date of allotment for payment of service tax in respect of construction services provided to landlord ignoring the fact that the construction was continued subsequently from May, 2017 to November, 2018; will it be sufficient and adequate compliance, if the appellant complies law and remit entire service tax on the entire area earmarked to landlord; what is the ‘Constructed complex’ referred to in the concerned notification.
Held that:- The Hon’ble Authority for Advance Ruling held that as per Notification No.4/2018 dated 25.01.2018 the date of transfer of possession of the building or the right in it to the person supplying development rights will be the time of supply and the liability to pay tax on the said services shall arise on that day. The time of supply shall not be at any other time. The applicant has to pay tax as per the time of supply indicated above. Constructed complex’ refers to a building or a completed structure.