The Joint Development Agreement (JDA) is an agreement between a landowner and a real estate developer to develop real estate projects on the owner`s land. In such an agreement, the developer carries out construction activities and the owner of the land makes land available. In a similar case in Nforce Infrastructure Pvt. Ltd[20 G.S.T.L. 184], the Authority decided that the taxpayer would provide the development rights provider with construction services in the form of a transfer of development rights. 2. GST is billed by the owner and deposited with the government. It is the responsibility of the contractor to assess liability and regain responsibility. If he forgets to gather you, he will have to pay when the request comes out of his pocket. So you don`t have to worry. the delivery date at which the developer must pay the RCM tax on TDR when commercial real estate (a) registered persons who grant development rights to a developer, contractor, construction company or other registered person are used, in whole or in part, in the form of construction work for complex construction, real estate or civil construction; and Section 50C of the Income Tax Act provides that if the value of stamp tax is greater than the market value of the asset, the notator may challenge and refer the valuation officer to the valuation officer and, if the equal market value assessed by the valuation manager is less than the value of the credit tax, which is considered by the appraiser to be fair market value, the value of the total consideration for the calculation of the capital gain. However, if we read Section 45 (5A), there is no such provision. Does this mean that it is not possible to refer to section 50C? 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. Recently, the Authority for Advance Ruling (`AAR), Karnataka, said in the case of Maarq Spaces Pvt. Ltd (KAR ADRG/199/2019) stated that the activities planned under the JDA between a real estate developer and the landowner are calculated for this service and can therefore be taxed at 18% GST.