Is there GST on corpus fund?
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Is there GST on corpus fund?
The Karnataka Authority for Advance Rulings (AAR) has held that such contribution towards the sinking fund (also termed as corpus fund) is not a “deposit”, but in fact, an “advance” for future supply and thus liable for 18 per cent GST. Thus, as per GST laws, it liable to tax.
Can builder collect corpus fund?
Many mid-size builders collect funds to manage the maintenance fund till the society is formed. The Builder shall transfer the corpus fund to the Association after its formation. Many mid size builders collect fund to manage the maintenance fund till the society is formed.
What is corpus fund from builder?
A corpus fund is a large amount of money that is collected by the builder from the buyer at the time of booking of the apartment. These funds are utilised towards building and maintaining of the several recreational amenities that have been guaranteed by the builder through his advertisement/prospectus.
Is GST applicable for association of persons?
2019 effective from 01.07. 2017 neither supply of goods from association of person/body of individual to member nor supply of goods by member to association of person/body of individual remains supply that is even supply of goods by the association of person/body of individual to its member is no more supply.
Is GST payable on sinking fund?
GST at 18\% is applicable on repair and maintenance funds and sinking funds collected by residents’ welfare association (RWA) or Housing Society if the total value of charges exceeds the threshold limit of Rs. 7500 per month per member, Maharashtra Authority for Advance Ruling (AAR) said.
Is corpus fund received on redevelopment taxable?
The corpus received by members from builders could be treated as a capital receipt, received on account of the hardships caused to the them on redevelopment and thus, not taxable as income of the assessee unless specifically provided by the Income Tax Act.
Is Sinking fund and Corpus fund same?
Once the housing society is duly formed, the Corpus Fund amount can also be transferred to the Sinking Fund which is used for major repairs, reconstruction, structural addition or redevelopment.