Treading GST Path - XXVIII -Joint Development Agreements and GST ImplicationsOctober 22nd, 2021
FiledOctober 22nd, 2021a Joint Development Agreement (JDA) theLandowner and a Builder would agree to develop the land owned by the landowner, into a complex and an agreed number of flats would be handed over to the landowner and the remaining flats wouldbe sold to various buyers by the builder. The builder would sell his share of flats, along with proportionate undivided share of land (UDS) and retain the sale proceeds. Strictly speaking the benefit for the builder for constructing and handing over agreed number of flats to the landowner, is only the sale proceeds realised from sale of UDS land pertaining to builder's share of flats. The applicability of erstwhile service tax on the services provided by the builder to the landowners was mired in lot of confusions as to the time when service tax was payable, what is the value to be adopted, etc. under the erstwhile service tax regime. These aspects were clarified in different manner in various CBEC Circulars / Education Guide. Let us try to understand the imp