Sometimes the landowner can have the construction built for his own use for the purposes of his residence and agrees to share a potion of built area with the developer, even according to a JDA model. In this case, the landowner never intends to give up his share of the built-up area. So, in such a situation, if TDR is taxable? The author considers that TDR should not be taxable in such cases, as it has never been with the intention of doing business or as part of the promotion of a transaction by the owner. The conditions of Section 7 are therefore not fully met and therefore there should be no supply. In addition, there will never be a commercial motive or profit in such transactions. However, it can also be argued that the definition of “business” as defined in Section 2(17) is very broad and encompasses any trade, trade, manufacturing, occupation, vacation, adventure or other similar activity, whether it is a financial benefit, regardless of the magnitude, frequency, continuity or regularity of that activity or transaction. Therefore, the activity of transfer of development rights by a landowner, individual or not, is a service subject to the GST. 3. Complex Service Construction – Complex Clarifications Thus, it is important to discuss the concept of leasing and licensing to assess the applicability of the services tax on the acquisition of development rights. Therefore, the acquisition of operating rights for an empty property (not exclusively for residential property) is subject to the services tax when it is classified as: (i) empty land rental; or (ii) license for unded land. Finally, the same opinion is reflected in an advance ruling No-KAR ADRG 29/2018 of 28.11.2018 in the case of Re Patrick Bernardinz D`Sa.
The applicant submitted this application in a prejudicial capacity of 23.02.2018, exploring whether the landowner applicant is required to pay in the premises assigned to him and that he intends to distribute among his family members? In this regard, the preliminary authority responds by verifying the notification 04/2018 of 25.01.2018 that the applicant who has granted development rights to a developer for his property is subject to registration and payment of taxes. as a registered person, in the case of which the principal tax on the provision of these services is due; consideration (a) in the form of work and development rights covered in point (b) is constituted on the date on which the developer, contractor, contractor or other registered person transfers the property or right into the construction complex, building or construction direction to the person providing the development rights by the introduction of a transportation certificate or similar instrument (e.g. B).