GST APPLICABILITY REGARDING JOINT DEVELOPMENT AGREEMENT
This query is : Resolved
26 October 2019
Dear Sir/madam,
Myself, a builder and a land owner enters into a JDA in purview of construction of a gated community (Individual villas). There is no consideration from the part of builder to Land owner. The Land owner receives only the value of the land as his portion of share, that too direct from villa buyer.
1. Is this JDA valid
2. If so, Then what is the % of GST applicable for selling of villas ((i.e.,) 18% or 12%)
3. if 12% is applicable then how much value has to be entered in GST return. whether the sale value should include land value also. If land value to be included then how it has to be accounted because the value for land portion is directly paid to the land owner.
Kindly enlighten me on this.
Thanks in advance.
Myself, a builder and a land owner enters into a JDA in purview of construction of a gated community (Individual villas). There is no consideration from the part of builder to Land owner. The Land owner receives only the value of the land as his portion of share, that too direct from villa buyer.
1. Is this JDA valid
2. If so, Then what is the % of GST applicable for selling of villas ((i.e.,) 18% or 12%)
3. if 12% is applicable then how much value has to be entered in GST return. whether the sale value should include land value also. If land value to be included then how it has to be accounted because the value for land portion is directly paid to the land owner.
Kindly enlighten me on this.
Thanks in advance.
28 October 2019
1 Valid.
2 18% GST applicable on construction cost excluding land.
3 Exclude land value.
2 18% GST applicable on construction cost excluding land.
3 Exclude land value.
29 October 2019
THE JDA SHOULD BE REGISTERED. YOU HAVE TO PAY GST ON REVERSE CHARGE BASIS ON THE VALUE OF BUILDING TO BE HANDED OVER TO THE LANDOWNER.
29 October 2019
No building is handled over to the landlord.
30 October 2019
yes you are currect. there is no question of reverse charge.
30 October 2019
Dear Sirs,
Thank you very much for your valuable feedbacks.
A follow up uestion:
Why cant we opt for 12% gst with the land value because there is a JDA in place. As my land value is much lesser than my construction cost, 12% on the land value will be much beneficial.
Thank you very much for your valuable feedbacks.
A follow up uestion:
Why cant we opt for 12% gst with the land value because there is a JDA in place. As my land value is much lesser than my construction cost, 12% on the land value will be much beneficial.
26 July 2024
The 12% GST rate with the presumed land value benefit may not always be feasible due to the requirement that 1/3rd of the total sale value must be considered as land and 2/3rd as construction. If the actual land value is much lower than 1/3rd of the sale value, the 12% GST may not be favorable.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- F & O PROFIT REPORTING FOR AY 2026-27
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
