Question ID :
38164
430758
Facts: -
1. Developer company entered into Development agreement on 01.01.2019 with Landowner who is engaged in some manufacturing business.
2. Development agreement was revenue + area sharing
3. Developer has paid 3 installments of certain amount to landowner till 31.03.19 as per their development agreement.
Questions: -
1. Is GST payable on this development rights by developer or landowner?
2. If yes than on which value, total contract value or only on area to be given to landowner?
3. GST impact on this development agreement if it was entered on or after 01.04.19
Posted by
SUBHASH CHAND
on
May 25, 2019
Filed Under
GST
The value of the built up area received from the builder/ promoter together with the cash consideration received will be liable to be assessed in the hands of the landowner at the time of getting the completion/ occupancy certificate. whether the agreement is before or after 01/04/2019 will not make any difference.
Posted by
CA. VENKITARAMAN K V on
May 26, 2019
Answer ID :
76654
Please go through the today newspaper 27th may 2019. Chandigarh high court has refused to tax on Transfer of development rights . If the same decision is upheld by the supreme court the GST law is likely to be amended,
Posted by
CA. BISHT RAKESH on
May 27, 2019