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Transferable Development Right (TDR) certificate

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siddhant

Tax Consultant

34 Points Posted on 17 June 2024

Client received TDR certificate in lieu of land surrendered to the competent authority.

1. Whether GST is applicable on sale of such TDR Certificate ? If yes then under what provision and rate of GST?

2. Valuation of such TDR certificate for purpose of GST?

3. Whether 50C of income tax act is applicable in such case?

Note - This question is in respect of Transferable development right certificate and not on Transfer of Development rights

Replies (2)

Quick Summary

This discussion clarifies the Goods and Services Tax (GST) implications when a client receives a Transferable Development Right (TDR) certificate in exchange for surrendered land. It delves into whether GST applies to the sale of these certificates, the relevant provisions and rates, and how to value them for GST purposes. The query also touches upon the applicability of Section 50C of the Income Tax Act in such scenarios.

Kishor Lulla

656 Points Posted on 18 June 2024

If buyer is developer builder and using in construction then no gst on forward transaction. dev Bui will pay RCM at 18 %.
if buyer is purchasing as a trader then forward tax 18 %.
valuation is transaction value not less than ready reckoner value.