Contentions of the Applicant. 4.1. The applicant submits that for villa projects they identify land for the project and either buys the land outright or enters into agreement for sale with the Landowners. The agreement for sale is to purchase the property in their name or in the name of their nominees in one or more deeds. A combination of outright purchase of a part of the property and agreement for sale for the remaining area may also be followed. Then they prepare layout plan and get it approved by the local authority.
Contentions of the Applicant. 4.1. The applicant submits that they enter into two agreements with the customers who want to have an apartment in their project. Firstly, an agreement for sale of undivided share of the land is executed between the company and the customer in which a particular number of undivided shares are agreed to be sold to the customer based on the square feet of the apartment proposed to be purchased by the customer. Along with the said agreement, another agreement for constructing the apartment is also executed between the company and the customer entrusting the work of constructing the apartment to the company. The value of the undivided share of the land is shown in the agreement for sale. A registered sale is executed in favour of the customer showing the said value of undivided share as the land cost and stamp duty is paid. Also, cost of construction of the proposed apartment as valued by a valuer is also to be shown as per the amendment of 2007 and stamp duty for the said amount is also shown in the sale deed and the same is paid along with the value of undivided share of land. No GST is collected or paid in respect of the value of undivided share of land.
Contentions of the Applicant. 4.1. The applicant submits that they had entered into two major contracts with Xxxxxx and Toubro Limited (L&T), ie, one is an EPC contract for constructing runway and another is a BOQ based contract for constructing a Passenger Terminal Building [PTB] in the airport. The construction had started during the pre- GST period and was in progress in to the GST period. The issue is related to the admissibility of input tax credit on services received from the supplier, Xxxxxx and Toubro Ltd (L&T) in connection with the construction of the said runway and passenger terminal.
