Wednesday, March 29, 2017
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EMIs of under-construction, leased houses to attract GST from July 1

29 Mar 2017 | 1:33 AM

NEW DELHI:Come July 1 and leasing of land, renting of buildings as well as EMIs paid for purchase of under-construction houses will start attracting the Goods and Services Tax (GST).

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New Delhi, March 28 

Come July 1 and leasing of land, renting of buildings as well as EMIs paid for purchase of under-construction houses will start attracting the Goods and Services Tax (GST).

Sale of land and buildings will be, however, out of the purview of GST, the new indirect tax regime. Such transactions will continue to attract the stamp duty, according to the legislations Finance Minister Arun Jaitley introduced in the Lok Sabha yesterday for approval. Electricity has also been kept out of the GST ambit.

The GST, which the government intends to roll out from July 1, will subsume central excise, service tax and state VAT among other indirect levies on manufactured goods and services.

The Central GST (CGST) Bill states that any lease, tenancy, easement, licence to occupy land will be considered as supply of service.

Also, any lease or letting out of the building, including a commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply of services as per the CGST Bill.

The GST Bills provide that sale of land and, sale of building except the sale of under-construction building will neither be treated as a supply of goods nor a supply of services. Thus GST can’t be levied in those supplies.

‘Goods’ in earlier drafts of the Bills were defined as every kind of movable property other than money and securities but includes actionable claim. ‘Services’ were defined as anything other than goods. It was thought that GST may be levied on supply of immovable property such as land or building apart from levy of stamp duty. But the Bills presented in Parliament have now clarified this position.

Tax experts said that currently service tax is levied on rents paid for commercial and industrial units, although it is exempt for residential units.

Deloitte Haskins Sells LLP Senior Director MS Mani said: “While service tax is applicable at present on sale of under-construction apartments, it is levied on a lower value as abatement allowed. The abatement is ostensibly to take care of the value of the land involved in the construction of apartments”.

He said the GST Rules, which will come up for discussion in the Council meeting on March 31, would help ascertain whether a lower rate of GST is proposed for such transactions or whether a similar abatement procedure would be prescribed.

Experts said service tax is currently levied on payments made for under-construction residential houses after providing abatement, which brings down the effective rate from 18% to around 6%. — PTI 

Airtel sells stake in Bharti Infratel

29 Mar 2017 | 1:33 AM

NEW DELHI: Bharti Airtel said on Tuesday it has successfully completed the secondary sale of over 190 million shares of its subsidiary Bharti Infratel to a consortium of funds advised by KKR and Canada Pension Plan Investment Board for over Rs 6,193.9 crore.

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NHPC pays highest-ever interim dividend of Rs 1,882 crore

28 Mar 2017 | 12:54 AM

NHPC Limited has paid an interim dividend of Rs 1,402.21 crore to Government of India for the financial year 2016-17.

Briefly

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28 Mar 2017 | 12:54 AM

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28 Mar 2017 | 12:54 AM

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28 Mar 2017 | 12:54 AM

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Tax trial run in May, June

28 Mar 2017 | 12:54 AM

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FM tables GST draft Bills in Parliament

28 Mar 2017 | 12:54 AM

NEW DELHI: Breaking the jinx to roll out the proposed pan-India unified structure for levy of indirect taxes, Union Finance Minister Arun Jaitley today introduced four Bills aimed at rolling out Goods and Services Tax (GST) in the Lok Sabha amid protest from the Opposition on the ground that the matter was not listed in the House’ business agenda for the day.

Nod to 101 cold chains to cut wastage of fruits, veggies

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28 Mar 2017 | 12:54 AM

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Rs 5,000 relief on preventive healthcareTax advice: SC Vasudeva

Rs 5,000 relief on preventive healthcare

27 Mar 2017 | 1:56 AM

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