Transfer of Development Rights under JDA taxable on value of similar flats offered to independent buyers

Last updated: 14 September 2021

Court :
Tamil Nadu Authority of Advance Ruling (TNAAR)

Brief :
In M/s. ThiruNeelakanta Realtors Ltd [ORDER No. 33/ARA/2021 dated August 17, 2021], M/s. ThiruNeelakanta Realtors Ltd ('the Applicant') has sought clarification on mainly two issues. The first issue pertains to applicability of paragraph 2A of Notification No. 03/2019-Central Tax (Rate) dated March 29, 2019('Notification No. 03/ 2019') on agreements entered into with unregistered persons before September 29, 2019 whereas the second issue deals with applicability of the said notification i.e Notification No. 03/2019 on valuation when the actual cost of construction of services is known. The Applicant relating to the above issues have further sought clarification about which valuation rule would apply in the prevalent case to identify value of supply and the consequence, if Rule 30 or Rule 31 of the Central Goods and Services Tax Rules 2017 ('the CGST Rules') is to be adopted by the Applicant.

Citation :
ORDER No. 33/ARA/2021 dated August 17, 2021