9911796707
Advanced Search 
TMI Blog2018 (10) TMI 1868X X X X Extracts X X X X X X X X Extracts X X X X ..... developed. Applicant is the Technical Partner (as well as applicant owns some land). To full fill the condition of getting license of residential plotted colony/township, Mr. A, Mr. B and Mr. C will enter into a collaboration agreement with the Applicant for getting license and development of Residential plotted colony. Mr. A, Mr. B and Mr. C agree to give 20% of licensed plotted area to Applicant, in consideration of that Applicant will be responsible for obtaining license, to lay roads, sewerage, storm water etc. Thus the Land Owners (Mr. A, Mr. B and Mr. C) will have 80% of the licensed plotted area arising out of their respective share of land. As per the prevailing provisions of the concerned authority, for granting the licence to d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GST is applicable then what will be the taxable value and applicable tax rate in this case. 2. Whether GST will be applicable on the 20% share of licensed plotted area agreed to be provided by the land Owners to the Applicant (developer), If GST is applicable then what will be the taxable value and applicable tax rate in this case. Applicant's interpretation of law and/or facts, in respect of the aforesaid question(s) For Question No. 1 The plotted areas are proposed to be sold/booked by all the persons during the development (before completion of the development work of the township) of the township. From the conjoint reading of Section 7 and Paragraph 5 of Schedule III of SGST/CGST Act, any activity/transaction in the nature of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Record of Personal Hearing Personal hearing in the case was conducted on 13.09.2018 which was attended by Sh. Kapil Aggarwal, CA, Sh. Amit Tayal, Director of the firm. The applicant besides reiterating the submissions made in their application had given additional submissions which were taken on record.. Discussion and finding of the authority The nature of the proposed agreement as described by the Applicant is a Joint Development Agreement wherein the land owners and the Applicant enter into an agreement for development of the land so as to make it saleable. The Applicant will be responsible for obtaining license from the concerned authority, to lay the roads, sewerage, storm water etc. On completion of the development work or say d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plots will be considered as consideration paid by the land owners for the services rendered by the Applicant for development of their land and will be regarded as 'works contract, services attracting 18% GST (9%CGST+9%HGST). Advance ruling under section 98 of the CGST/HGST Act 2017 In the backdrop of above discussions and findings the advance ruling on the questions is pronounced as under: - 1. Whether GST will be applicable on the booking/selling of plots to be done by The Applicant and Land owners during the development (before completion of the development work of the township) of the township? If GST is applicable then what will be the taxable value and applicable tax rate in this case. Ruling: Booking/selling of plots to be d ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
