Tax Realty

  SECTION 143 OF INCOME-TAX ACT, 1961 - ASSESSMENT - GUIDELINES FOR MANUAL SELECTION OF RETURNS FOR COMPLETE SCRUTINY DURING THE FINANCIAL YEAR 2019-20 LETTER F.NO. 225/169/2019/ITA-II , DATED 5-9-2019 1. The parameters for manual selection of returns for Complete Scrutiny during financial year 2019-20 are as under.- ( i )   Cases involving addition in an earlier assessment year(s) on a recurring issue of law or fact:-   a .   exceeding Rs. 25 lakhs in eight metro charges at Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune while at other charges, quantum of addition should exceed Rs. 10 lakhs;   b .   exceeding Rs. 10 crore in transfer pricing cases.       and where such an addition:-   1.   has become final as no further appeal has been filed against the assessment order; or  

GST IMPLICATIONS ON REFUND OF ADVANCES RECEIVED WITHOUT FURTHER SUPPLY   ISSUE:      M/S. ENTITY (REGISTERED WITH GST) has entered into agreement for construction and sale of Flat to a Customer. An amount of Rs.100lacs in FY 2019-20 and Rs.25lacs in FY 2020-21 were received by ENTITY (REGISTERED WITH GST) and same has been disclosed in the GST returns as advances in respective months. Subsequently in the FY 2020-21, the Customer wishes to cancel the said agreement and requesting refund for the said amount. M/s. ENTITY (REGISTERED WITH GST) require clarifications whether GST amount deposited to the government for Rs.5lacs in FY 2019-20 has to be deducted from the refund amount.   RULE:     As per sec.31 (3)(d) , a registered person shall, on receipt of advance payment with respect to any supply of goods or services or both, issue a receipt voucher or any other document, containing such particulars as may be prescribed, evidencing receipt of such payment.     As per Sec.31

  Intricacies on TDS payment to Land Owner by Promoter in Joint Development   Section / Description TDS Threshold Points to Ponder 194IC 10% Any amount. · There should be Joint Development Agreement (JDA) registered as mentioned U/s.45(5A). Such agreement is termed as Specified Agreement . · Applicable only in case of consideration made in Cash, Cheque, draft or by any other mode. · Not applicable for the value of Area Sharing given by the Promoter to the Land Owner. · Not applicable for Agricultural Land . · Provisions of Section 203A shall apply for Promoter for obtaining a TAN and accordingly file TDS returns.     Analysis of few related issues:   1.  What is the position of Non-Resident Indian – Land Owner entering into JDA ? In the case of Non-Resident Indian entering into JDA, the promoter has to deduct TDS on the payment made in cash/draft/ch

  Basic GST information required in Real Estate.   From 01.04.2019 the effective rate of GST applicable on construction of residential apartments by promoters in a real estate project are Sl No. Description Effective Rate of GST ( After deduction of Value of Land ) 1 Affordable Residential apartments 1% on total consideration (Without ITC ) 2 Other than Affordable Residential apartments 5% on total Consideration (without ITC ) 3 Commercial Apartments in a Residential Real Estate Project. 5% on total consideration ( without ITC) 4 Commercial Apartments in a Real Estate Project. 12% on total consideration ( with ITC ) Conditions Mandatorily to comply  :- (Sl. No 3 of Notification No. 11/2017- CTR are mandatory)     A promoter shall purchase at least 80% of the value of input & input services, from