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TMI BlogService Tax on ConstructionX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Professional Colleagues Please guide me on the following issue:- A builder/developer is constructing building and starting booking of flats before completion of construction, the activities flows in following manner: 01-01-2010 Date of construction started. 01-01-2011 Date of First Booking of Flat Stage of completion Date of construction date of realisation 4th Floor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 01-04-2012 31-05-2012 (50 percent of Flat Value) 10th Floor 01-04-2014 31-05-2014 (90 percent of Flat Value) Possession by Deed of conveyance 01-10-2014 01-10-2014 (100 percent of Flat Value) Based on the above please guide me that, what will be the point of taxation for each cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... truction stage, as it is a continuous supply contract. Thanks in advance Balram Pandey - Reply By Brijesh Verma - The Reply = POT shall early of : 1. Invoicing 2. Completion (where completion in case of construction is every such event where customer is obliged to pay) 3. Payment - Reply By YASHAVANTH RENUKA - The Reply = Dear Pandey, The Following method to be used as per Accounting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Std. ( AS) 7 (2002). You can book revenue on accrual basis in case of Income Tax. You can book revenue on completion basis for Service Tax as per POT Rules. Year 1 Year 2 Year 3 Initial amount of revenue agreed in contract 9,000 9,000 9,000 Variation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - - 200 200 Total contract revenue 9,000 9,200 9,200 Contract costs incurred up to the reporting date 2,093 6,168 8,200 Contract costs to complete 5,957 2,032 - - Total estimated contract costs 8,050 8,200 8,200 Estimated Profi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 950 1,000 1,000 Stage of completion 26 percent 74 percent 100 percent - Service Tax on Construction - Query Started By: - CA BALRAM PANDEY Dated:- 10-3-2014 Service Tax - Got 2 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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