VAT ON REAL ESTATE
TRANSACTIONS
CA KISHOR R. GHEEWALA
(DT.13.12.2014)
TYPES OF DEALERS
1. WORKS CONTRACTOR
2. LABOUR CONTRACTOR
3. READY PROPERTY DEALER
4. BUILDER MODEL
5. DEVELOPER MODEL
I. HISTORICAL BACKGROUND : 1) Works Contract is NOT a ‘contact for sale’ of
materials & hence , NOT exigible to Sales Tax.
- The State of Madras vs. Gannon Dunkerly & Co.
(Madras) Ltd. (1958) 9 STC 353 (SC).
2) 46th Amendment to the Constitution of India
w.e.f.02-02-1983, inserting clause (29A) to
Article 366 to include, inter alia, tax on sale or
purchase of goods involved in execution of Works
Contract
3) Amendments in the Gujarat Sales Tax Act, 1969
w.e.f.05-08-1985, imposing tax on all such newly
inserted Deemed Sale transactions including
works contract.
4) The Constitutional validity of the 46th
Amendment Upheld by Supreme Court in
Builders Association of India vs. UIO (1989) 73
STC 370 (SC) (5 Member Bench)
5) In the C.S.T. Act.1956, consequential amendments
were carried out by The Finance Act. 2002 only &
hence, CST on inter state works contract became
applicable w.e.f.11-05-2002.
II. “WORKS CONTRACT” DEFINITION: 1) Definition under CST Act : –
The Finance Act, 2005 inserted Clause 2(ja) in the
Central Sales Tax Act, 1956 which reads as under:
‘(ja) “works contract” means a contract for carrying
out any work which includes assembling,
construction, building, altering, manufacturing,
processing, fabricating, erection, installation,
fitting
out,
improvement,
repair
or
commissioning of any movable or immovable
property”.
2) Definition under GVAT Act : –
The Gujarat Value Added Tax Act.2003 (The GVAT
Act) contains the definition of the term “Works
Contract”, by way of Explanation (ii), to Sec. 2(23),
which defines the term ‘Sale’. It reads as under.
“Sec. 2(23) “Sale” means a sale of goods made within
the State for cash or deferred payment or other
valuable consideration and includes, a) ………
b) transfer of property in goods (whether as goods
or in some other form) involved in execution of a
works contract,
c) to j) ……………………………………….
Explanation –
a) ……………………………………………….
b) for the purpose of sub-clause (b), the expression
“works Contract” means a contract for execution
of works and includes such works contract as the
State Government may, by notification in the
Official Gazette, specify: (Emphasis Supplied)
3) Notified Works Contracts : –
Vide Government of Gujarat, Finance Department
Notification No. (GHN-23) VAT -2006/ (S.2)(23)(1)/
TH dated 31/03/2006, following items have been
notified as “Works Contracts”
1. The construction, improvement or repair of any
Building, Road, Bridge, Dam or other immovable
property.
2. The
installation,
fabrication,
assembling,
commissioning, or repair of any plant or
machinery whether or not affixed to any
building, land or other immovable property.
3. The
installation,
fabrication,
assembling,
commissioning of any Air conditioner plant, Air
conditioner, Air cooler, whether or not affixed to
any building or the immovable property.
4. The assembling, fitting out, reassembling
improving, producing repairing or otherwise
treating of furniture fixtures, partitions including
contracts of interior decoration.
5. Since omitted Vide Notification Dt.16/05/2008. Prior
to its omission, it read as under.
The
installation,
fabrication,
assembling,
commissioning or repairs of lifts, or elevators or
escalators.
State of A.P. vs. Kone Elevators (India) Ltd. (2005)
140 STC 22 (SC) (3 Member Bench)
State of A.P. vs. Kone Elevators (India) Ltd. (2008) 15
VST 457 (SC) (3 Member Bench) Referring to
Constitution Bench.
6. The
Construction,
fabrication,
assembling,
commissioning or repairs of bodies on chassis of
motor vehicles including three wheelers and fire
fighters or of vessels of every description meant for
plying on water.
7. The overhauling or repairing or dismantling of
any motor vehicle, vessels of every description
meant for plying on water or any other vessel
propelled by mechanical means, any air craft, or
any equipment or part of any of the aforesaid
items
8. The
fitting
out,
assembling,
altering,
ornamenting, reassembling, blending, finishing,
furnishing, improving, processing or otherwise
treating or adapting or fabrication of any goods.
9. Erection, installation and Commissioning of
Wind Turbine Generator including power
evacuation system and repairing thereof.
10. Fixing of Marble, slabs, polished granite stones,
and tiles (other than mosaic tiles)
11. Fixing of sanitary fittings for plumbing drainage
and the like
12. Painting and polishing
13. Laying of pipes
14. Tyre re-treading
15. The supply of goods in providing know-how,
designs, labour, supervision, inspection, training
or other services in connection with any of the
operations mentioned in serial numbers 1 to 14
above.
4)) Mere supply of labour not covered –
Taxable event is transfer of property in goods. In
case of contract for supply of labour, there is no
transfer of property in goods and hence there is no
tax liability – Ashok Kumar Garg vs. UOI (2002) 128
STC 442 (P&H HC DC)* Rajiv Gumber vs. Bharat
Sanchar Nigam Ltd. (2002) 128 STC 494 (P&H HC
DB.)
Thus, simple job work will not be taxable, if there are
no goods involved in the job work K V Nagarajan vs.
DCTO (2007) 5 STR 325 = 208 ELT 165 (Mad. HC
DB) – same view in K C Nagarajan vs. DCTO (2007)
7 VST 585 = 11 STT 411 (Mad. HC)
5) TAXABLE VALUE : –
1. In case of Builders Association of India Vs. Union
of India 73 STC 370 (SC), the Supreme Court held
that the entire contract price cannot be subjected
to Sales Tax but only value of the goods in which
the property would pass during execution of
works contract can be taxed.
2. The Supreme Court in the case of Gannon
Dunkerly & Co. Vs. State of Rajasthan 88 STC 204
has observed as under:
“The value of the goods involved in the execution of
a works contract will, therefore, have to be
determined by taking into account the value of the
entire works contract and deducting therefrom the
charges towards labour and services which would
cover :
a) labour charges for execution of the works;
b) amount paid to a sub-contractor for labour and
services;
c) charges for planning, designing and architect’s
fees;
d) charges for obtaining on hire or otherwise
machinery and tools used for execution of the
works contract;
e) cost of consumables such as water, electricity,
fuel, etc., used in the execution of the works
contract, the property in which is not
transferred in the course of execution of a
works contract; and
f) cost of establishment of the contractor, to the
extent, it is relatable to supply of labour and
services;
g) other similar expenses relatable to supply of
labour and services;
h) profit earned by the contractor to the extent it
is relatable to supply of labour and services.
The Court further held:
“We may, however, make it clear that apart from
the deductions referred to above, it will be
necessary to exclude from the value of the works
contract, the value of the goods which are not
taxable in view of Sections 3, 4 and 5 of the Central
Sales Tax Act and goods covered by Sections 14
and 15 of the Central Sales Tax Act as well as goods
which are exempt from tax under the Sales Tax
legislation of the State. The value of goods involved
in the execution of a works contract will have to be
determined after making these deductions and
exclusions from the value of the works contract”.
3. “Sale price” under Section 2(24) of, the GVAT Act
means, “the amount of valuable consideration
received or receivable by a dealer for sale of any
goods. In respect of works contract, under subclause (b), “sale price” means the amount arrived
at by deducting from the amount of valuable
consideration paid or payable to a person for the
execution of such works contract, the amount
representing labour charges for such execution.”
(Emphasis Supplied)
4. Section 2(30) of the GVAT Act, 2003 defines
“taxable turnover” in respect of works contracts as
“turnover of all sales or purchases of a dealer
during the prescribed period in any year, which
remains after deducting therefrom, the charges
towards labour, service and other like charges, and
subject to such conditions as may be prescribed.”
(Emphasis Supplied)
5. Normally, the contractor will be in a position to
furnish the necessary material to establish the
expenses that were incurred under the aforesaid
heads of deduction for labour and services. But
there may be cases where the contractor has not
maintained proper accounts or the accounts
maintained by him are not found to be worthy of
credence by the assessing authority. In that event,
a question would arise as to how the deduction
towards the aforesaid heads may be made
6. Rule 18AA of the GVAT Rules, 2006, inserted w.e.f.
11/10/2006 refers to the deductions and the
conditions thereto, in respect of charges towards
labour, service, etc. [as provided under Section
2(30)]. The provisions of this Rule are as follows :
“(1) The value of the goods shall be determined by
deducting the amounts paid by way of price for subcontract made with a registered dealer, if any,
pertaining to the said works contract.
(2) A registered dealer who claims any deduction
for labour, services and other like charges shalli. maintain true and correct records for such
deductions;
ii. prove to the satisfaction of the Commissioner
that he has actually paid the amount in the
year in which he claims such deduction; and
iii. furnish true and correct evidences for claiming
such deductions at the time of assessment or
when asked to furnish in any proceedings:
Provided that where the amount of charges
towards labour, service and other like charges are
not ascertainable or the accounts maintained by the
contractor are not sufficiently clear or intelligible, a
lump sum deduction is admissible at prescribed
percentages.
(3) The percentage shown in the Table shall be applied
after first deducting from the total contract price,
the amount paid by way of price for the entire subcontract made with sub-contractor, if any.”
7)Only one taxable event even when work is done
by sub-contractor
In Larsen & Toubro Ltd. vs. State of Andhra
Pradesh (2006) 148 STC 616 (AP C DB), it was
held that
“Sub-contractor acts only as agent of Contractor.
Hence, there is only one taxable event. Property in
goods directly passes on to the contractee. Hence,
there is only one ‘sale’. Thus, sales tax can be
collected either from contractor or sub-contractor
and not both.
This view was confirmed in State of Andhra
Pradesh vs. Larsen and Toubro (2008) 9 SCC 191=
16 STT 501 = 17 VST 1 (SC), where it was held
that main contractor is not liable to VAT on
turnover of subcontractor. There is only one
deemed sale and not two, even if subcontractor
had no privity of contract with the contractee. The
property in goods passes to owner/contractee on
its incorporation in the works contract.”
8) Taxation of Work Contract : –
Two methods are available under the GVAT Act for
determining the tax liability for a works contract.
A. As per Normal Provisions : –
In this method, tax calculations are generally
made as under.
a) First of all, labour exps., Consumables etc. are
deducted from Gross Receipts of works
contract to arrive at sale value of goods.
b) The sale value, thus derived is to be further
bifurcated according to applicable tax rates
say 5% or 15% etc.
c) The aforesaid bifurcation of sale value
according to tax rates is generally done on the
basis of purchases of goods, by segregating
the same rate wise.
d) In such segregated rate wise purchase costs,
freight exps. if any, are added.
e) In cost of goods so arrived, Gross Profit is
added to arrive at value of goods sold.
f) From value of goods sold, so derived, ratewise separately, actual tax liability is worked
out. This is known as “Output Tax”.
g) From the aforesaid “Output Tax” liability,
Input Tax Credit (ITC) admissible to the
dealer on his purchases of goods is deducted.
h) The Difference between Output Tax & Input
Tax Credit is the actual tax payable by a
Dealer. If such difference is negative, meaning
thereby that, Input Tax Credit is more than
Output Tax, the excess is to be carried
forward to next tax period to be adjusted
against future liability.
B. COMPOSITION SCHEME: –
The GVAT Act, 2003 also provides an optional
scheme for payment of lump sum tax by way of
composition in respect of works contracts under
Section 14A read with Rule 28.
i. Composition qua contract :
The contractor may opt for composition qua
each contract separately. Accordingly, a
contractor may opt for Composition scheme
for same contracts & may not opt for the same
for other contracts. The contractor is required
to apply for composition within 30 days from
the beginning of the contract to the
jurisdictional officer in Form 214. The
permission for composition shall be granted
in Form 215 within fifteen working days,
which will be effective from the date of the
beginning of the contract and till its
conclusion.
ii. Composition qua year in case of “ongoing
works contracts”:
As per the amendments carried out w.e.f.
11/10/2006, the contractor can also apply for
composition for all contracts executed during
a financial year. Application for permission is
required to be made to the jurisdictional officer
in Form 214A within thirty days before the
commencement of the year. In case of new
dealers registered after 01/04/2006, the
application will have to be made within 90 days
(30 days upto 21/05/2007) of the date of
Registration. Permission will be granted by the
officer in Form 215A within fifteen working
days form the date of receipt of the application
and shall be effective from the beginning of the
year. W.e.f 01/04/2008, the dealer under this
category need not file fresh application every
year. The permission earlier granted will
continue to be valid.
iv. The composition amount is payable by the
dealer on full amount received in respect of
those contracts for which permission for
composition has been granted after deducting
the amount paid by way of price for entire
sub-contract, if any, made with the subcontractor. So excepting the payments to sub
contractors, no other deductions whatsoever
including for labour etc. will be admissible for
determining liability for composition amount
which is payable on Gross receipts only, after
making deduction for price payable to sub
contractor.
v.
A contractor who is permitted to pay lump sum
tax shall not,
a) Claim tax credit in respect of tax paid by him
on his purchases,
b) Charge any tax in his sales bill or sales
invoice in respect of the works contract and
c) Issue tax invoice to the contractee in respect
of the works contract.
vi. A contractor who is permitted to pay lump sum
tax is also liable in addition to composite
amount to pay purchase tax on purchases from
unregistered dealers under provisions of Sec.
9(1) and (3).
vii. The contractor is not permitted w.e.f.
11/10/2006, to use the goods in the
execution of works contracts covered under
the permission to pay lump sum tax, if such
goods are
a) Purchased in the course of inter-state
trade or commerce or imported from
outside the territory of India, or
b) Received from his branch situated outside
the State or from his consigning agent
outside the State;
viii. Contractor opting for yearly composition for
“ongoing works contracts” is not permitted to
dispatch goods to his branch situated outside the
State or to his consigning agent outside the State.
ix. All taxable goods used in the execution of works
contract covered under the permission to pay
lump sum tax, ought to have borne the tax
payable under the GVAT Act, 2003;
x. The option exercised under this rule shall be final
and is irrevocable.
xi. Misc. Sales like Sales of gunny bags, scrap etc. will
be chargeable at normal rate & not at the rate of
composition, even in case of having opted for
composition.
SPECIFIC PURCHASES ON WHICH ITC NOT AVAILABLE
As specifically provided in Section 11(5), ITC will not
be allowed inter-alia on the following purchases, –
i. Of vehicles, equipments, accessories or spareparts thereof (except when they are meant for
sales),–Sec.11(5)(j)
ii. Of goods which are used as fuel in generation of
electrical energy for captive use or otherwise–
Sec.11(5)(l)
iii. Of Petrol, HSD, crude oil and lignite (unless such
purchase in intended for re-sale)–Sec.11(5)(ll)
iv. Of goods used as fuel in motor vehicles–
Sec.11(5)(m)
v. Of capital goods used in transfer of property in
goods involved in execution of works contract–
Sec.11(5)(mm)
vi. Where original tax invoice does not contain
details of tax charged separately, –Sec.11(5)(o)
vii. Where original tax invoice is not available or its
duly authenticated duplicate is not available –
Sec.11(5)(p)
TAX DEDUCTION AT SOURCE
u/s. 59A and 59B and Rule 65
a) Any Person responsible for paying specified sale
amount exceeding Rs.1 Crore to the contractor or subcontractor is liable to deduct Tax at Source at the rates
of composition.
b) “specified sale price” means the amount of valuable
consideration paid or payable for the works contract
after deducting the amount of labour charges for
execution of such works contract and the value of the
goods purchased in the course of inter State trade or
commerce or in the course of import of goods into
territory of India for use in such works contract.
c) “Specified works contract” means the work contract,
the specified sale price of which exceeds Rs. One
Crore.
d) In case where the contractor has awarded specified
works contract to sub-contractors and the contractor
has deducted the tax from the payments of specified
sale price to the sub-contractors and paid such
amount in to the Government Treasury within the
prescribed time, then in that case, the person shall not
be liable for deduction of equal amount of tax from
the payment of specified sale price to the contractor.
e) Where a contractor or Sub-contractor is not liable to pay
tax under the provisions of the Act, such contractor or
sub-contractor may apply to the Commissioner to issue
“No-TDS” certificate. If the Commissioner is satisfied
that no tax is payable by the contactor or sub contractor,
he may issue such certificate and on the basis of such
certificate, the deduction will not be required to be
made.
f) The TDS deducted is to be paid into Government
treasury in challan in Form 207 within 22 days. The
deductor is required to obtain a treasury receipt
therefor and furnish a copy of such receipt to the
contractor or the sub-contractor within 30 days of the
receipt of such treasury receipt.
g) Where the amount of TDS has not been deducted, the
tax shall be payable by the contractor or the subcontractor directly.
h) Failure to deduct TDS or to deposit of the TDS
deducted attracts penalty upto 25% of the amount
required to be deducted.
i) Delay in depositing the TDS deducted attracts simple
interest at the rate of 18% per annum on the amount
of tax not paid into Government Treasury.
j) The deductor has to issue certificate of TDS in Form
703 with tax paid challan in original to contractee. Out
of the gross payment, the amount liable for deduction
is to be arrived at by deducting labour charges, price
of interstate/import purchases as per declaration
given by the contractor/sub-contractor in Form 702.
W.e.f. 01-08-2009, every person liable to make TDS
should apply for Tax Deduction Account Number
(TDN) within prescribed time in prescribed form.
TDN should be quoted on all prescribed documents
etc.
k) Salient features of rules for T.D.S., notified vide
Notification Dated 24/12/2009 are as under,
1) A person liable for T.D.S. shall have to apply in
Form 706, online on Department’s Website, within
30 days, for Tax Deduction Account Number. A
copy of such application shall be submitted within
7 days of the application, alongwith the particulars
to be prescribed by the Commissioner by public
circular for registered dealers or officer of central/
state govt./ local authority & alongwith the
particulars prescribed in rules for other persons.
The number will be issued in Form 707.
2) A person deducting tax shall file quarterly return for
T.D.S., in Form 704, within 30 days, on Department’s
Website.
3) A person claiming credit of T.D.S. shall have to file Form
216A, within 30 days of the tax period, alongwith
regular return.
4) T.D.S. Certificate in Form 703, shall be serially,
mechanically numbered in duplicate. Original should
be given to the Contractor/ Sub Contractor.
5) A person liable for T.D.S. shall have to maintain the
prescribed particulars in Form 705.
6) On cessation of liability for T.D.S., an application in
Form 708 shall have to be submitted on Department’s
Website for cancellation of Tax Deduction Account
Number.
VAT NOTIFICATION U/S. 5(2)(a)
Above rates are inclusive of Additional Tax @ 1% W.e.f 01/04/2008.
A. Ready Properties:Immovable Properties & hence, NOT “Goods” & hence, no
liability under VAT Laws.
B. To be Constructed Properties:DEVELOPER MODEL:Land owned by ‘A’, Development Rights with ‘B’ &
Customer ‘C’ - Development Rights only with the
Developer.
Customer pays to landlord for land value & to
Developer for construction.- Land Owner to execute
sale deed for rights in land to Customer & Developer
to issue Bills for Construction to Customer – Amounts
to ‘Works Contract’ & liable to tax as such.
- Developer to receive all moneys from Customer &
join with land owner for execution of sale deed of
whole property – Liable to Tax
 In K Raheja Development Corporation v. State of
Karnataka AIR 2005 SC 2350=(2005) 5 SCC 162= 2
STT 178 =141 STC 298 = 3 STR 337 (SC), it was held
that definition of ‘works contract’ in Karnataka Sales
Tax Act is wide. It is not restricted to ‘works contract’
as commonly understood. It was held that the
developer would be liable to pay tax on the works
contract. However, if the agreement is entered into
after the flat or unit is already constructed, there
would be no works contract.

Decision in K Raheja’s case doubted by subsequent
bench of SC – Decision of SC in case of Raheja
Development Corporation has been doubted in Larsen
and Toubro vs. State of Karnataka(2008) 16 STT
286=17 VST 460 (SC). It was observed that if ratio of
K Raheja Development Corporation is accepted, there
would be no difference between works contract and a
contract for sale of chattel as a chattel. With these
observations, the matter had been referred to a Larger
Bench.

In Assotech Realty v. State of UP (2007) 10 STT 36=8 VST
738=7STR 129 (All. HC DB) and ATS Infrastructure v.
State of UP [ WP decided on 6-12-2006 – see 9 STT 68
(Mag.)(All. HC DB)], it has been held that builders
booking apartments before completion of construction
of the apartments and receiving advance or part
payment are not liable to pay Vat/ Sales tax under
Works Contract, if right, title and interest in the
construction remains with the builder ( and is passed to
buyer only after construction is over).
L&T Ltd & Anr. vs. State of Karnataka & Oth(2013)65 VST 1
(SC)
Dominant Nature test has no Application. Even if the
dominant intention of the contract is not to transfer the
property in goods and rather it is the rendering of service or
the ultimate transaction is transfer of immovable property,
then also it is open to the States to levy sales tax on the
materials used in such contract if it otherwise has the
elements of a works contract.
Definition takes within its fold all genre of works contract
including building contract. –– The term “works contract” in
article 366(29A)(b) is amply wide and cannot be confined to a
particular understanding of the term or to a particular form.
The term “work contract” in article 366(29A)(b) takes within
its fold all genre of works contract and is not restricted to one
specie of contract to provide for labour and services alone.
The value of the goods has to be the value of the goods at the
time of incorporation of the goods in the works even though
the property passes as between the developer and the flat
purchaser after incorporation of goods. The mode of valuation
of goods provided in rule 58(1A) of the Maharashtra Value
Added Rules, 2005 has to be read in the manner that meets
this criteria.
The activity of construction undertaken by the developer
would be a works contract only from the stage the developer
enters into a contract with the flat purchaser. The value
addition made to the goods transferred after the agreement is
entered into with the flat purchaser alone can be made
chargeable to tax by the State Government.
If at the time of construction and until the construction was
completed, there was no contract for construction of the
building with the flat purchaser, the goods used in the
construction cannot be deemed to have been sold by the
builder since at the time there is no purchaser.
Builder Model:(Land owned by Builder, - De Facto & De Jure owner)
- L&T Ltd & Anr. vs. State of Karnataka & Oth(2013)65 VST 1
(SC)
- Liability for Purchase tax on Unregistered Dealer
Purchases
- Builder is a “Dealer” & hence, liable to be registered
even if, Not liable to pay tax
- OGS/Import Purchases Permissible if not under
composite scheme.
Renting of Properties:Liable to Service tax & No liability under VAT laws
Transfer of Right to use Goods:Amounts to “Sale” – Liable to VAT – No ITC for Vat paid on
goods let out.
SOME IMPORTANT DETERMINATIONS
naao
vyavahar klama–2³23)³baI) mauJbanaa vaocaaNanaao vyavahar
gaNaaya Anao isaivala vak-sa kaonT/akT tarIko ArJdar klama–
14 Ao hoZLa ]ccakvaoranaI parvaanagaI Qaravataa haoya taao
Jahornaamaa k`maaMk : PAocaAona–106, taa.11.10.2006
mauJba 0.6 Tkanaa dro vaorapaa~a qaaya taoma
ZravavaamaaM Aavaola Co.
saJ-na {nf`akaona pa`a.laI., navarMgapaura, Amadavaad
Providing & laying down Ready Mix Concrete
2013-GSTB-Determination Part – I Page No : 24
SOME IMPORTANT DETERMINATIONS
ArJdar ga`ahknao Aapaola Jaobavak- drimayaana saIramaIk Ta{lsa par DokaoroSana maaTo vaaparola
klar, komaIkla Anao f`IT par vaoranaI JvaabadarI ]paisqata qaaya ko koma? Anao Jao haM taao
vaoranaao dr SauM laagao?
ArJdar ga`ahk paasaoqaI maoLavaola Ta{lsa par ipa`nTIMga/DokaoroSana krI AapaI Anao
DokaoroSana krola Ta{lsa ga`ahknao parta kro Co Jo vyavahar vak-sa kaonT/a>Tnaao vyavahar
gaNaaya. AaqaI naIcao mauJba ZravavaamaaM Aavao Co.
1) Aa vak-sa kaonT/a>Tnaa vyavahar drmyaana vaparataa ³klar) naa Deemed Sale qaaya Co Anao
taonaa vaocaaNa AnausaUica–2 naI naaoMQa–29 mauJba 4 Tka laoKao vaorapaa~a qaaya taomaJ
taa.01.04.2008 qaI 1 Tka laoKao AoDISanala Toxanao paa~a.
2) Aa vak-sa kaonT/a>Tnaa vyavahar drmyaana vaparataaM ipa`nTIMga maIDIyaa³komaIkla) Ao
knzyauma qa{ JtaaM hao{ kao{ ga`ahknao taonaaM maailakI h>> tabadIla qataaM na hao{ taonaaM
vaocaaNaao na gaNaaya Anao taonaa par vaorao laagao naih taoma ZravavaamaaM Aavao Co.
sTar saIramaIk DokaoroTsa-, maaorbaI, P. raJkaoT
2012-GSTB-Determination Part – I Page No : 3
SOME IMPORTANT DETERMINATIONS
1 ) gauJrata AonaP- T/ansamaISana kaopaao-roSana laI. Saaqaonaa “AaoparoSana Anao
mao{nTonansa” naao vyavahar vak-sa kaonT/akT gaNaaya ko koma?
2 ) Jao ha, taao gauJrata AonaP- T/ansamaISana kaopaao-roSana laI. ³gaoTkao ) TIDIAosa krI Sako
ko koma?
ArJdar maa{naaor spaosa- taqaa knzyaumaobalsanaao vaparaSa qaaya Co. JonaI maailakI gaoTkao nao
tabadIla qaaya Co. AaqaI naIcao mauJba ZravavaamaaM Aavao Co.
1 ) ArJdarnaao vyavahar klama–2³23 ) ³baI ) transfer of property in goods (whether as goods or
in some other form) involved in execution of a works contract mauJba vak-sa kaonT/a>T gaNaaya.
2 ) klama–59Ao³saI ) Anao ³DI ) naI Jaogavaa{nao AaiQana Aa vak-sa kaonT/a>TnaI “spaoSaIfa{D
saola pa`a{z” #a.1 kraoDqaI vaQataI na haoya taao klama – 59 ³baI ) hoZLa TIDIAosa krvaanauM
qaaya naih.
saImsa AonPnaIyarIMga pa`a.laI., paaorbaMdr
2012-GSTB-Determination Part – I Page No : 38`
SOME IMPORTANT DETERMINATIONS
k–80/2011/DI/163–164/Ja.466/469, taa.13.12.2011
ga`ahk Wara saImaonT paUrao paaDvaamaaM Aavao Anao ArJdar ga`ovala saonD,
Flaaya AoSa ]maorI roDI maIxa kaonk`IT taOyaar kro taao ArJdarnaao vyavahar
klama 2³23 ) ³baI ) mauJba vak-sa kaonT/a>Tnaao laaBa maLao. Aa vak-sa
kaonT/a>TmaaM vaparataa maala parnaao vaorao vak-sa kaonT/a>Tnaa
vyavaharmaaM vaparaSa qayaola caIJao, kpacaI, ga`ovala, rotaI, flaaya AoSa,
vagaoronaa vaocaaNaao krola gaNaaya Anao taonaa par AnausaUica mauJba
vaoranaao dr laagau paDo taoma Zravaola Co.
sauyaaoga {nF`a ³{inDyaa ) pa`a. laI., vaapaI
2011-GSTB-Determination Part – II Page No : 239
`
AMNESTY SCHEME FOR BUILDERS/ DEVELOPERS
Vide G.R. No.GST/1014-884/VAT CELL Dt.14/10/2014, an
Amnesty Scheme, allowing the benefit of Lumpsum Tax @ 0.60%
of Gross Receipts alongwith remission of Interest and Penalty, is
declared as per the State Budget Announcement on 01/07/2014.
Salient features of the Scheme are as under.
1. The Scheme is applicable to those dealers only, in whose case, the
liability of tax has arisen because of Supreme Court’s Decision
Dt.26.09.2013 in case of L&T Limited
2. The benefit of scheme is available to Registered Dealer &
Un-Registered Dealer also.
3. The Scheme is applicable for Transactions commencing from
01/04/2006.
4. The Benefit is available even if proceedings of Assessment,
Reassessment or revision are in progress.
`
AMNESTY SCHEME FOR BUILDERS/ DEVELOPERS
5. The Lumpsum tax @ 0.60% of Gross Receipts will have to be paid. In
addition, following amounts will also be payable.
a) In case of Purchases from URD, Purchase Tax U/s. 9 will be
payable.
b) No input tax credit will be admissible.
c) In case of Purchases from RD, If the seller has not paid tax to the
Government, such tax will have to be paid by the dealer.
d) In case of Purchases from Outside State (Including Import),
Output Tax @ applicable rate will be payable on their deemed
sales.
6. In case of OGS Purchases of Machineries in the nature of Vehicles,
Entry Tax must have been paid by the dealer. If not paid earlier, the
same will be payable under the scheme.
`
AMNESTY SCHEME FOR BUILDERS/ DEVELOPERS
7. In case of OGS Purchases of Machineries other than in the nature of
Vehicles, Tax @ Schedule rate on such machineries will have to be
calculated and will have to be reduced from the admissible remission
of Interest and Penalty. So, indirectly tax on such purchases will be
payable.
8. The period of the Scheme is 180 days from the date of GR.
9. The benefit is available for the Transactions upto the date of
Application.
10. The Benefit is available in case of Pending Appeals also.
`
E-FILING MANDATORY
`Vide
Public
Circular
No.
GUJKA/VAT/BUDGET
1415/OTW.156/135, Dt.27th October, 2014, clarifications have been
issued for recent amendments in VAT Rules, carried out Vide
Notification No. (GHN-19) VAR-2014(35)-Th Dt.15th October, 2014.
Salient Features of the same are as under.
1. All dealers are now liable to E-File their returns. This will be
applicable for all Monthly/ Quarterly Returns starting for period
ending on 30/09/2014.
2. A dealer, obtaining registration for the First Time, is made liable
to file Monthly returns for first 12 Months and thereafter, the
returns will have to be filed as per the applicable provisions.
3. Non Localized dealers are now made liable to file Monthly
Returns permanently
E-FILING MANDATORY
4. Time Limit for issuing provisional refund is extended from 15
days to 90 days from the date of receipt of application for
Provisional Refund.
5. VAT Audit Reports are now to be e-filed instead of submitting
hard copy. Following additional documents are also to be Efiled.
a)
b)
c)
d)
e)
Audit Report in Form 217
Scanned Copy of Statement of Particulars duly signed by
Auditor & its soft copy.
Scanned Copy of List of all Statutory Forms & its soft Copy.
Scanned Copy of Statutory Audit Report & Statement of
Observations, Comments & Notes of Chartered Accountant.
An Undertaking by the dealer or a person authorized U/s.65.