By Legal Cell
Applicant, Land Owner entered into a development agreement with Builder to develop and promote multi-storeyed residential apartment cum commercial building. The landowner was entitled to get a share of 50% of the total of 12 flats constructed and also 50% share out of 4,000 SFT of commercial construction.
AAR upheld that N. No. 4/2018-CTR dated 25-01-18 provides that the person who supplies development rights shall pay central tax at the time when the developer/builder transfers possession or right in the building by way of conveyance deed or similar instrument. Hence, the applicant is the person who has supplied development rights to a developer in respect of his land, is liable for registration and payment of tax.
The applicant has not submitted details with regards to the transfer of possession of the constructed flats / commercial area or allotment order of the same and hence it was presumed by Authority the possession of the constructed flats / commercial area has not been handed over to the applicant as on date.
Sri Patrick Bernardiz D’sa – KAR ADRG 29/2018 (AAR – Karnataka) – Dated 28-11-2018