On the basis of the above cases, it can be said that if only rural development activities are carried out within the framework of a joint economic and development committee, it is likely that this will also be taxed under the GST. However, if the development of the land is naturally grouped with the sale of land and the sale is the main delivery of the group transaction, the transaction can be interpreted as a compound delivery without GST liability. It would therefore be appropriate for taxpayers to agree on the exact extent of services provided under a JDA in order to determine their tax capacity. (a) registered persons who grant development rights to a developer, a contractor, a construction company or another registered person in exchange for consideration in the form of work in complex real estate or civil constructions; and the provision of TDR or ISPs or long-term land leases, at such a value, commensurate with the construction of dwellings that are not reserved at the time of issuance of the certificate of completion or first occupancy, GST would attract 18%, but the amount of tax will be limited to 1% or 5% of the value of the dwelling depending on whether the dwellings for which these TDR or ISFs are used are used in the affordable housing category or in affordable housing. TDRs or ISPs or long-term leases of land used for commercial housing must attract a GST of 18%. Therefore, the provisions in force before April 19 would continue to apply to these deliveries and notification 4/2019-CT (R) of March 29, 19 would therefore not be applicable, since they are also residential dwellings. Therefore, if the landowner receives a building site from the developer in exchange for the provision of land, the landowner is responsible for the payment of the GST. The GST rate for such a transaction would be 18%. After April 1, 2019, the real estate sector changed significantly in terms of the impact on GST. It is therefore important to rethink the law, to understand the effects of taxation and other aspects in order to a common development agreement. Joint development agreements are generally concluded either on the basis of revenue distribution or on the basis of land distribution. In this article, we will take a walk through the provisions of the land-sharing agreement. 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.