“Effective rate of GST payable on the purchase of under-construction residential or commercial properties from builder involving the transfer of an interest in land or individual share of land to the buyer is 12% with full input tax credit (ITC)”, said CBEC. If you have opted property ...
On September 14, 2023, the Department of Finance Canada issued anews release(the “News Release”) regarding proposed legislation to be enacted in order to enhance the existing GST New Residential Rental Property (“NRRP”) rebate on certain new purpose-built rental property. The proposed...
GST is not payable on Human hair, unworked, whether or not washed or scoured; waste of human hair Semen including frozen semen. GST on Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage is nil rate. GST is not payable on sale of Fresh vegetables...
In Toyama Pty Ltd v Landmark Building Developments Pty Ltd [2006] NSWSC 83 the New South Wales Supreme Court considered the GST treatment of the sale of disused residential property with a development approval for the erection of a 14-unit development upon the land. A house was built upon p...
The bank took possession of the building in the year it was completed and the lessor claimed deductions on depreciation, interest on construction loan, expenses related to sale and lease back and accrued the rent from the bank. The Commissioner of Internal Revenue denied the claims of the ...
Lower costs of logistics A key positive GST impact on real estate developers is the effective dissolution of state boundaries under GST. Previously, developers engaged in construction of property in other states would invariably face the brunt of compliance costs. This is since the central sales tax...
The decision in Safari is a High Court decision which maybe relied to avail credit pertaining to construction of building and other civil structures, meant for own use in business, and which are capitalized in books. Such credit which was not availed in past maybe availed now for 2018-19[...
Transfer of tenancy rights to a new tenant against consideration in the form of tenancy premium is taxable and hence GST is payable on the same. Renting of residential dwelling for use as a residence is exempt. Services provided by outgoing tenant by way of surrendering the tenancy rights again...
What is the impact of GST on rent? Effect on Buyers: Previously, buyers of under-construction properties had to payVAT, Service tax, Registration fees, and Stamp duty. Furthermore, because state levies such as VAT, Registration fees, and Stamp Duty were imposed, property prices differed from...
Transitional PST inventory rebate for residential real property contracts– A rebate will be available for PST embedded in construction materials purchased before July 1, 2010, but used in residential property contracts on or after July 1, 2010.    ...