Joint Development Agreement (JDA) refers to an agreement between the owner of the land and the person (may be in different names, i.e. owner, developer, construction company, etc.), the owner of the land making land available to the owner for the construction of a real estate project. In return for the land made available by the owner of the land, the owner plans by appointment that may be: but then again, the author has another argument that, if the government has already specified 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 activity. 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. In the case of MAARQ Spaces (P.) Ltd., [2019] 111 taxmann.com 368 (AAR – KARNATAKA) The applicant has assumed a joint development agreement with landowners for residential complex land development and development costs. 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). C. Any other amount that the developer has charged to the purchaser of the dwelling, including preferred location fees, development costs, parking fees, common facility fees, etc. The tax effects on the first part of the transaction, i.e. the transfer of development rights, are as follows: If we examine the definition of the real estate project (in accordance with Section 2 (zn) of the RERA Act), it includes land development activity in the land. The other GST Act also recognizes this definition in the context of RERAs for the purposes of taxing real estate projects.
This definition could therefore perhaps attract the attention of the authorities when it comes to taxing the sale of building land. Under the GST, the concept of « supply » is very broad, including bartering or exchanging goods or services; The term « services » is defined as something other than goods. In addition, Appendix III of the CGST Act, 2017, excludes the sale of supplied land. There were some uncertainties about the fiscal capacity to transfer development rights under the Common Jid, whether or not they are subject to the GST. However, Communication 4/2018 specifies that the transfer of operating rights from the owner of the land to a real estate developer is taxable. In accordance with Communication 4/2019 – Central Tax (rate) dt. Dt. On March 29, 2019, the operating rights were exempted by development fees on April 1, 2019 or after April 1, 2019 for the construction of housing by landowners. However, this exemption is conditional on the sale of dwellings before the date of issuance of the year-end certificate or the first occupation of the project, as the case may be. In the case of a joint development contract, the owner of a land or building transfers his or her operating rights to a contractor or developer for the development of land and a building.
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