Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: empanelment :: articles on VAT and GST in India :: TDS :: ACCOUNTING STANDARD :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: VAT RATES :: cpt :: due date for vat payment :: ACCOUNTING STANDARDS :: list of goods taxed at 4%
 
 
« Sales Tax »
 Clarification on Cash sale of agricultural produce by Cultivators/Agriculturists
 Short-term capital gains are taxable at income tax slab rates in the year of sale
 India imposes regressive nationwide sales tax
 Modification of Circular No.1 of 2014 in view of substitution of Service Tax by Goods and Services Tax (GST).
 Assam government to dismantle all sales tax check-gates post Goods and Services Tax
 Income tax: How to calculate capital gains tax on sale of old jewellery
 Six arrested for posing as Sales Tax officers, extorting money
 Insurance Agency Mergers and Acquisitions in Q1 "Explode," OPTIS Partners' Report Reveals
 Sales tax sleuths raid spare parts shops in Meerut's infamous Sotiganj market
 Income Tax: How offshore income could be taxed twice
 India finalises bills to launch new sales tax in July

Sales tax notices hit real estate
June, 12th 2008
The notices issued by the sales tax department on work contract tax have sent the real estate industry into a tizzy. A representation of city builders will meet the finance secretary on Wednesday to discuss the issue.

In the light of the decision given by Supreme Court in K Raheja Development Corporation vs state of Karnataka, the sale tax department is considering the advance booking and has linked schedule payments by the purchaser of the flat as the payment under 'work contract.
Builders are contending the order on the basis that builders and developers in Rajasthan do not enter into any development agreement, thus there is no work contract involved.

If the views of sale tax department are accepted then it would mean that there would be no need to pay stamp duty by the builder while purchasing the land and similarly the transaction is for awardees, so stamp duty would also not be required on the subsequent sale, builder-cum-charted accountant Atma Ram Gupta said. He added that one transaction can not be taxed twice by the state government.

The 4% tax is proposed to be levied on the account of sale transaction of the building constructed by the builders.

The department, in its notices, has deducted 30% of amount as labour charges. 40% of the rest amount is considered as the steel sold to the customer, which attracts 4% of sale tax. The department has calculated tax at the rate of 12%, the highest rate of VAT as the transaction of a flat is not specified on sale tax act, thus attract the highest rate applicable.
Chairperson of the Rajasthan Builders and Promoter Association, Gopal Gupta, said that the move of sale tax department is not justified. Principal secretary (finance) Subash Chandra Garg said that he would look into the matter.

Tax break-up

30% of total is labour charges
4% tax on 40% of remaining amount for sale of steel
12% VAT on rest amount
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Company Overview

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions