In accordance with Section 45 (5A), the capital gain is taxable even if a certificate of completion is issued for part of the project. However, in the above scenario, the logical and reasonable interpretation would indicate that the capital gain should be increased proportionately to the area used for the part of the project for which a certificate of completion was issued. Subsequently, THE CBDT issued another circular no-151/2/2012-ST of 10.02.2012, it was specified that, for the period leading up to 01.07.2010: the work of the owner/developer is not taxable, in accordance with the circular of the Board of Directors No. 108/02/2009-ST of 29.01.2009. In the same circular, it was specified that, for the period following 01.07.2010, the work of the owner/promoter is taxable if the owner/promoter received a portion of the payment/development rights of the land prior to the issuance of the certificate of completion and that the service fee should also be paid by the owner/promoter for the dwellings transferred to the property owner. The transfer of development rights is not within the jurisdiction of the services tax, as it is neither a « rent » nor a « licence » of open land. These transactions are intended for the open sale of a property (i.e. a virgin property) that is outside the forecast of the services tax during the aforementioned period (i.e. before July 1, 2012). 3.
Modus-operandi for the transfer of development rights Since Section 50C is a legal fiction and its scope and scope are limited to what is stated in the provision. Therefore, this provision can only be invoked if land or buildings or both are transferred. Their establishment may not be extended to other evaluators, nor to other characteristics, nor to circumstances other than those indicated. It was also decided that Section 50C can be invoked when development rights are transferred at the same time as the transfer of the land. We can see that there is a recorded act of transmission. The additional fees would make no difference.