The developer may claim ITC on incoming deliveries, both in revenue-sharing agreements and on the allocation of land for the transfer of land rights by the landowner to the real estate developer, under the following conditions: 9.10 On the basis of the above-mentioned provisions of the agreement, it would be concluded that the activities carried out by the applicant are not covered by point 5 of the 1992 list, 1995, 1995 Consequently, the activities carried out by the applicant constitute a service and I answer in the affirmative to the first question, that is to say, the activities carried out by the applicant, as provided for in the agreement submitted to the Authority, constitute a supply of services to landowners and must be adequately taxed in accordance with the provisions of the CGST/KSGST Laws. landowners have granted not only land development rights, but also the right to sell the units built on their land. Ownership of the land was replaced by the landowner by proxy to the developer, executed in favor of the developer. 3. Commercial housing allocated to the owner of the land: the assessment would be the similar dwelling that the developer has invoiced to the independent buyer closest to the date of transfer of the development right. If the development right transfer agreement is concluded with the lessor, the developer will pay taxes on that day in accordance with RCM. Admittedly, the owner of the land confers the right of development and provides the service in the form of a development right in favour of the promoter of the project. The service provider is the landowner and the developer is the beneficiary. However, the provision of services in the form of a transfer of the right to development on 1 April 2019 and after 01 April 2019 is taxable by bringing into force Communication No 05/2019 – Central Tax (rate) of 29 March 2019, but from 01 April 2019. The Hon`ble ITAT Hyderabad Bench “B” in the case of Adhinarayana Reddy Kummeta v Assistant Commissioner of Income Tax, Circle -11(1), Hyderabad 2018 (4) IMT 37 – ITAT HYDERABAD however found that Section 45(5A) cannot be applied as a substantive provision to the previously concluded development contract, in which Section 2(47)(v) would certainly be attracted.
The obligation to pay GST for development fees occurs on the day of the completion of the certificate or the initial arrival of the project, whichever is earlier. The GST rate applicable to the transfer of development rights, FSI and long-term lease of land is the value calculated by the lessor upon delivery of TDR or market value (collected by the government during the collection of stamp duty) upon conclusion of such a TDR agreement. The value of the stamp duty on 20.04.2020 for each dwelling was: Rs. 40.00 Lakhs JDA helps both the developer and the landowner with no initial investment for the acquisition of land, partly avoiding stamp tax, accelerated development of the property, as capital is only needed for the execution of the works, in return for the lessor, who is mainly paid after the completion of the project. In the case of MAARQ Spaces (P.) Ltd., 2019 (11) TMI 994 – AUTHORITY FOR ADVANCE RULING, KARNATAKA Antragsteller has entered into a joint development agreement with the landowners for the development of residential layout land and the costs of the development are borne by the applicant. Revenues from land sales are shared in a ratio of 75 percent for landowners and 25 percent for applicants. It was found that the activities carried out by the applicant are treated as a service to landowners and that the taxable value of the supply within the meaning of Rule 31 (residual rules with reasonable means compatible with the principles and general provisions of Article 15) corresponds to the total amount received by the applicant. .
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