Therefore, the ISI consideration paid under the agreement with the non-registered owners would not be compatible with GST. In the land use agreement, landowners enter into an agreement with the developer under which the landowner grants the developer development rights for the construction or development of a complex. In return, the developer agrees to allocate part of the built-up area in the form of dwellings. For dwellings built by the developer and the agreement with the owner of the registered land, the GST must be paid by the developer so that the developer can benefit from the prices provided for at No. 11/2017, in accordance with points (i), (i), (i), (i), (i), (ib) and (id). Must be treated as a continuous service and according to the conclusion of the event by appointment will determine the delivery time in the real estate industry, the tripartite business model is known as Joint Development Agreements are often observed model. Due to the high land prices, the possibility of such agreements has become normal in the sector. In this case, the taxpayer and the landowner completed a JDA for the development of land in residential land as well as amenities. The distribution of income between the taxpayer and the landowner is 25% and 75% respectively. The cost of development has been borne by the taxpayer. The taxpayer also entered into an agreement with customers for the sale of land built for compensation.
The subject has requested a preliminary decision as to whether it is a JDA, i.e. a common development contract, the revenues are taxed in the year in which you receive the final certificate. It is easy to conclude that it is very difficult for professionals, developers and landowners to determine the exact tax debt in the event of cooperation agreements because of the number of changes made to the above provisions. The agreements should therefore be thoroughly reviewed to determine whether the agreement in question falls under Phase I, Phase II or Phase III. In current scenarios, not only in large cities, but also in small towns and towns in each land, development activities are carried out and are described as real estate activities in which buildings are built by contractors for residential and commercial purposes. These contractors are called professionals as developers. Today, the dwellings are built in such a way that the landowner transfers the rights to use the land to the developer. These rights conferred under a cooperation contract or a common development contract, in which the landowner grants a limited right to land such as the right to build, own and sell over-construction to the developer.