GST
TRT-2025-
AAR West Bengal
Date:-22-12-22
In:-
Issue Favourable to Tax Payer ?:-
Facts –
- The Applicant, Eden Real Estates Private Limited, engaged in construction of residential apartments intended for sale to buyers. The buyers are given an option to opt for car parking space along with the apartment being booked by them. A certain amount was charged towards the same by the applicant and the same forms part of the total consideration charged by the applicant towards sale of the apartment by the applicant.
Issue –
- Whether the amount charged towards parking space along with the sale of under constructed apartments is to be treated as a composite supply of construction of residential apartment services?
Order –
- The AAR observed that the case relied by the applicant in the case of M/s. Bengal Peerless Housing Development Company Ltd was modified by WBAAAR and held that the abatement prescribed in respect of value of transfer of land or undivided share of land is not admissible for preferential location services as well as right to use of car parking space which are altogether separate services having no association with the land.
- The AAR held that it is at the choice of the buyers whether they would avail the car parking facility or not. Further, an owner of a flat may avail this facility even after the issuance of completion certificate of the project. Furthermore, if there remains any un-allotted car parking space after allocation among the intending buyers, it is offered to allottees desiring additional car parking space. The aforesaid fact delineates that such supply is altogether a separate service and cannot be treated as naturally bundled with the construction services.
- Hence supply of services for right to use of car parking space would be taxable @ 18%.
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