Benami Transactions Act, Other Topics

[Balakrishnan Ramalingam]

One "A" is giving loan to a land owner "B". In turn "B" executes a Power of Attorney to one "C" who is an employee of "A". "C" develops the land as plots, builds roads etc., with the finance from "A". "C" starts selling the plots to various people in various dates. Technically the money goes to "B" and returns back the same to "A" towards loan he received from them.

My questions are:

1. Will this transaction fall under Binami Trans ACT?

2. The position of "C" under GST. Is he liable to GST ? if so on which value?

Posts / Replies

[DR.MARIAPPAN GOVINDARAJAN]

It is not a benami transaction. GST is applicable on the basis of services rendered by the builder.