Under the old regime, GST is included in the following two services, which were included in the development agreements: Dear Sunil Pandayji, The contractor rightly requires GST and registration fees from current members. However, it all depends on the agreement between the company and the developer. By mutual agreement, you can put a clause favorable to the members of the company regarding gst and registration fees. In many parts of the country, there is a practice, with separate registers for land and separate for flat constructed. In such cases, therefore, there is often an evaluation problem. In the case of IN RE: M/S. KARA PROPERTY VENTURES LLP 2019 (3) TMI 924 – AUTHORITY FOR ADVANCE RULING, TAMILNNADUthe assesse has entered into two separate agreements, one for the sale of one share of undivided land and the other for the construction of complex services to the buyer, two separate counterparties being charged by the purchaser. A question was therefore asked about the tax measure. The AAR found that the two agreements co-exist and work simultaneously; Any agreement cannot be terminated without terminating the other.
This is a single fully covered supply in 5 (b) Of Schedule II of the Central Goods and Services Tax Act, which makes this operation a “complex building” service, and therefore assumes that the GST can be collected 2/3 of the total value of the two agreements. It is cheaper to implement projects on a waste ground than to implement the rehabilitation project. The cost of the renovation can be taken into account for the costs of purchasing the land. To do this, developers must have major rehabilitation problems due to the double taxation of stamp duty and GST. In Mumbai, the plot plot can only be counted as the fingerprint. It is a fact that in the future, due to the difficulty of obtaining free land in Bombay, there is no alternative without sanitation. Developers are not very interested in implementing the rehabilitation project. The supply of GST caused a large pit in his patch. Therefore, it is said that developers are struggling to implement the renovation project in the future. In the case of MAARQ Spaces (P.) Ltd., 2019 (11) TMI 994 – AUTHORITY FOR ADVANCE RULING, KARNATAKA Applicant has entered into a joint development agreement with landowners for the development of residential complex land and development costs is borne by the applicant. Revenues from the sale of land are shared in a ratio of 75 per cent for landowners and 25 per cent for applicants. It was found that the applicant`s activities correspond to the total amount of service to landowners and the taxable value of the Rule 31 delivery (with appropriate means consistent with the principles and general provisions of Section 15).
But then again, the author has another argument that if the government itself has already made it clear in 2017 that the sale of antique jewelry and private used vehicles is not considered a delivery, because it is not in the promotion of the company. So why doesn`t the same principle apply to the exchange of TDR services with construction work? Does this mean that there will be separate principles for goods and services? In such cases, the author understands the tax obligation. However, disputes in such cases can still be mitigated very carefully by the development of the JDA agreement, so that unnecessarily the same thing is not interpreted as a promotion of activity or delivery. It is necessary not to pay GST when implementing a project on an empty ground. Stamp duty is only levied when an empty land project is purchased. At the same time, the implementation of the remediation project involves a double tax on stamp duty and GST, such as development agreement, rental rent, transfer of development rights, etc.