Does Development Agreement attract U/S 194 1A ?
Vivek Asher (CA Business) (31 Points)
01 July 2014Does Development Agreement attract U/S 194 1A ?
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 01 July 2014
194IA is attracted when there is sale and purchase of land or house property. in case of a development agreement, there is an agreement of sale of land against purchase of flats in the constructed property. so 194IA should be applicable.
Z
( )
(2960 Points)
Replied 01 July 2014
It may or may not, we will have to read the agreement.If the agreement is made in such a way that possession is transferred to the builder then it will attract.I will be writing an article on developmental rights(collaboration agreements) within 2 weeks or so, if you have any point then let me know. It will be great if you have the agreement,in case you are yet to enter into agreement then have details of it as we will have to see it on case to case basis
CAclubindia
