Sometimes the landowner can have the construction built for his own use for the purposes of his residence and agrees to share a potion of built area with the developer, even according to a JDA model. In this case, the landowner never intends to give up his share of the built-up area. So, in such a situation, if TDR is taxable? The author considers that TDR should not be taxable in such cases, as it has never been with the intention of doing business or as part of the promotion of a transaction by the owner. The conditions of Section 7 are therefore not fully met and therefore there should be no supply. In addition, there will never be a commercial motive or profit in such transactions. However, it can also be argued that the definition of “business” as defined in Section 2(17) is very broad and encompasses any trade, trade, manufacturing, occupation, vacation, adventure or other similar activity, whether it is a financial benefit, regardless of the magnitude, frequency, continuity or regularity of that activity or transaction. Therefore, the activity of transfer of development rights by a landowner, individual or not, is a service subject to the GST. If the agreement transfer of development rights with the owner, developer to pay taxes on RCM that day. 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. (Article above was written on December 5, 2019 and written jointly by CA. Yogesh Ingale, CA. Tushar Ajmera and CMA.