(a) by the landowner: in the form of land/development rights; and whether GST should be paid on the owner`s share of the dwellings/houses/parts of the building built by the owner and given to the owner of the land in accordance with the development agreement? 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. 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.
However, the benefit of deferring the tax debt offered under this disclosure is only possible if registered persons assign property rights on land to a developer, contractor, construction company or other registered person, meaning that a deferral is only possible if both parties are registered under GST. A special exemption for the payment of GST by deferring the delivery period for « delivery of development rights » is only allowed if the supplier (company as landowner) is a « registered person ». Therefore, the company should be registered under the GST to benefit from the deferral. 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.