Applicant, Land Owner entered in to development agreement with Builder to develop and promote multi storied residential apartment cum commercial building. Land owner was entitled to get share of 50% of total 12 flats constructed and also 50% share out of 4,000 SFT of commercial construction.

AAR upheld that N. No. 4/2018-CTR dated 25-01-18 provides that the person who supplies development rights shall pay central tax at the time when the developer / builder transfers possession or right in the building by way of conveyance deed or similar instrument. Hence, applicant being the person who has supplied development rights to a developer in respect of his land, is liable for registration and payment of tax.

The applicant has not submitted details with regards to transfer of possession of the constructed flats / commercial area or allotment order of the same and hence it was presumed by Authority the possession of the constructed flats / commercial area has not been handed over to the applicant as on date.

Sri Patrick Bernardiz D’sa – KAR ADRG 29/2018 (AAR – Karnataka) – Dated 28-11-2018