Paragraph 2A the Notification no.3/2019 prescribing a notional value of construction will be applicable even if the actual cost of construction is available.
Authority for Advance Ruling – Construction Service – The applicant is engaged in the business of providing works contract and construction services. The applicant sought an Advance Ruling as to whether paragraph 2A of Notification No. 03/2019-CT (Rate) dated 29th March, 2019, is applicable to those agreements entered on or before 29th September 2019 with unregistered persons; if the answer to question (1) is affirmative, whether Notification no 03/2019-CTR dated 29th March, 2019 is applicable, when the actual cost of construction of services are known; if the answer to the question (1) or (2) is negative, which valuation rule is applicable for identifying the value of supply for construction services rendered; what will be the value of supply, in case, Applicant adopts Rule 30; what will be the value of supply, in case, Applicant adopts Rule 31, instead of Rule 30 in terms of proviso to Rule 31; whether paragraph 2A of Notification no 03/2019-CTR dated 29th March, 2019, is ultravires Section 15(5) of Act and hence is inapplicable until there is prescription of rules in terms of Section 15(5) read with Section 2(87) of the Act.
Held that:- The Hon’ble Authority for Advance Ruling held that Paragraph 2A the Notification no.3/2019-CTR dt. 29.03.2019 is applicable to the agreement entered into between the applicant and the owners of the land in as much as the levy is imposable on the date of completion of the construction as per Notification No. 06/2019 –CTR dated 29.03.2019. Notification no.3/2019-CTR dt. 29.03.2019 is applicable to this transaction even if the actual cost of construction is available.
Paragraph 2A the Notification no.3/2019 prescribing a notional value of construction will be applicable even if the actual cost of construction is available.
Authority for Advance Ruling – Construction Service – The applicant is engaged in the business of providing works contract and construction services. The applicant sought an Advance Ruling as to whether paragraph 2A of Notification No. 03/2019-CT (Rate) dated 29th March, 2019, is applicable to those agreements entered on or before 29th September 2019 with unregistered persons; if the answer to question (1) is affirmative, whether Notification no 03/2019-CTR dated 29th March, 2019 is applicable, when the actual cost of construction of services are known; if the answer to the question (1) or (2) is negative, which valuation rule is applicable for identifying the value of supply for construction services rendered; what will be the value of supply, in case, Applicant adopts Rule 30; what will be the value of supply, in case, Applicant adopts Rule 31, instead of Rule 30 in terms of proviso to Rule 31; whether paragraph 2A of Notification no 03/2019-CTR dated 29th March, 2019, is ultravires Section 15(5) of Act and hence is inapplicable until there is prescription of rules in terms of Section 15(5) read with Section 2(87) of the Act.
Held that:- The Hon’ble Authority for Advance Ruling held that Paragraph 2A the Notification no.3/2019-CTR dt. 29.03.2019 is applicable to the agreement entered into between the applicant and the owners of the land in as much as the levy is imposable on the date of completion of the construction as per Notification No. 06/2019 –CTR dated 29.03.2019. Notification no.3/2019-CTR dt. 29.03.2019 is applicable to this transaction even if the actual cost of construction is available.