Revenue Sharing Joint Development Agreement

In the case of revenue sharing arrangements as per entry no 5 of schedule iii one can take a view that this is a sale of land to the customer along with the developer as developer is not obliged to give any consideration and it is a case of joint sale.

Revenue sharing joint development agreement. Revenue sharing joint development agreement jda however the main question arises about the applicability of gst on joint development agreement jda. Area sharing and revenue sharing tax issues ashok raghavan chartered accountant bangalore the transfer of immovable property by owners of land through the developers and or his nominees using the mechanism of a development agreement popularly known as a joint development agreement has been rampant especially in prime urban areas. Revenue sharing jda the landowner provides the land to the developer in return of which as a consideration the developer provides certain of sales revenue of the project to the landowner. Tax rate on a jda 18 gst is applicable on the development right given by the land owner to the developer.

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. Held that tax shall be payable on the 25 of the market value of the plot.