Construction Contracts
Construction Contracts a. For Builders/Developers: i. If the separate value of land is clearly mentioned in the agreement and if the same is higher than 33% of the total flat/unit sale value, the same can be claimed as deduction from the total value charged for the flat/unit - Munjaal Manishbhai Bhatt vs. Union of India on 6 May 2022 ii. The balance value can be taken as 110% of the cost of construction services. iii. TDR – RCM – 18% on commercial contracts iv. RCM on non gst suffered goods if taxable purchase is less than 80% v. 15% commercial construction allowed in residential flats vi. 1% affordable constructions, 5% on residential – without input tax credit vii. Joint venture agreement is key on deciding various aspects viii. No tax on single residential unit construction For flat/unit buyers: i. On the lines of above points, flat buyers can discuss and negotiate with the builders while buying under construction flats/units ii. Due care may be taken while