Gst On Revenue Sharing Joint Development Agreement

In a revenue sharing agreement the land owner supplies land and the developer contributes in the form of development activity.

Gst on revenue sharing joint development agreement. Parties involved in the joint development agreement jda here are the transactions and parties that can be engaged in a jda joint development agreement are. Both parties together enter into a sale document with the buyer. Joint development agreements jda are normally entered into either on revenue sharing basis or area sharing basis. The taxpayer also entered into an agreement with customers for sale of developed plots for consideration.

The activity of development and sale of land attract tax under. The taxpayer sought an advance ruling on whether. The cost of development was borne by the taxpayer. Maarq spaces private limited reported in 2019 11 tmi 994 authority for advance ruling karnataka the applicant submitted that he has entered into a joint development agreement on 8 11 2017 with land owners for development of land into residential layout along with.

The revenue sharing ratio between the taxpayer and landowner is 25 and 75. It is the buyer who is the ultimate receiver of the service and he pays gst as per the notifications issued from time to time. In area sharing agreement landowners enter into an agreement with the developer whereby the landowner gives development rights to construct or develop a complex to the developer.