Is Gst Applicable On Joint Development Agreement
Regulation 34 of the Bombay Metropolitan Development Control Regulation 1991 stipulates that, in certain circumstances, the potential for land development may be separated from the land and made available to the owner in the form of “transferable development rights”. Schedule-II`s Entry 5 (b) explanatory note made it mandatory to have the meaning of “competent authority” that can issue a graduation certificate or a professional certificate. It provides that, in cases where the certificate is not issued by a government authority, the certificate issued by a chartered architect or engineer or a certified surveyor must be considered a certificate of completion and must therefore take into account the date of issuance of the certificate. It is therefore a specific question of the state/city council/local authority and each state/UT has its own law for issuing such a certificate. But in the real world, it takes years to obtain the certification of completion of the government agency, even if the actual completion of the project goes back a long time. At this time, the apartments are occupied by owners and inhabited by them. In such a situation, without state testimony, it becomes really difficult to determine the exact date on which the project was completed or occupied first. As a general rule, the developer only issues property letters after receiving a certificate of completion from the architect/engineer. Therefore, the date of the “first occupation” will only be after the date of issuance of the “year-end certificate.” This will be the date of the issuance of the “year-end certificate” which will be the decisive date for determining the tax capacity of the units. If it is available or issued by the government (where applicable), then there is no dispute. But the difficulty comes from determining the first real occupation. Nor should we ignore the date of possession of the surrender as the date of the first occupation. The Hon`ble Delhi High Court in the case of J.K.
INDUSTRIES LIMITED VERSUS MOHAN INVESTMENTS ( PROPERTIES PRIVATE LIMITED LIMITED (1991 (4) TMI 458 – DELHI HIGH COURT) found that if the “first occupation” takes place before the issuance of the “certificate of completion”, especially when such a certificate is to be issued by the government authority. In such cases, the date of the first occupation is the reference date, even if the occupation is granted in violation of other laws. (a) registered persons who grant development rights to a developer, a contractor, a construction company or another registered person in exchange for consideration in the form of work in complex real estate or civil constructions; In addition, the provisions apply to the provision of TDR or ISPs or to the long-term lease of land used in new projects where a new rate of 1% or 5% is applicable.