It is also important to discuss modus operandi in general with regard to the transfer of development rights by landowners to property developers. If we consider the definition of the real estate project (in accordance with Section 2 (zn) of the RERA Act, it includes the development of land in the land. The other GST Act also recognizes this definition in the context of RERAs for the purposes of taxing real estate projects. This definition could therefore perhaps attract the attention of the authorities when it comes to taxing the sale of building land. Paying services tax in return for the transfer of development rights can result in huge service tax costs if no cenvat credit can be used (for example. B when the developer is active in the sale of real estate that does not attract tax on the service). Even in cases where De Cenvat assets can be used, there are working capital problems, as the time between the use of the Cenvat credit and the payment of the services tax in the construction industry is long. We observe a trend in the Joint Development Agreements, commonly known as JDA, in the real estate sector, from 2000-2001. JDA is an agreement between the landowner and the owner/developer. In such an agreement, the landowner contributes to his land and the owner/promoter assumes, at his own expense, the responsibility for obtaining various permits and works. In JDA, landowners may receive the consideration for the contribution of the land in the form of a certain percentage of the project`s built area, i.e. for the distribution of the JDA area or a certain percentage of the revenue from the turnover, i.e.
the distribution of JDA revenues. In the same circular of 151.2.2012, it is stated that the contractor/promoter must pay the service fee to the „construction service” of the land to the landowner at the time the property or property rights of the dwellings are transferred to the landowner through an aid certificate or similar instrument (e.g. B award letter). – the developer enters into an agreement with a landowner, with the right to develop the land being permanently and irrevocably transferred from the landowner to the developer; 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. The author believes that if a statue imposes the tax rate of an article with certain conditions, then in such cases, the same thing should be optional only. In other words, those who are willing to meet these conditions are subject to such a rate. Otherwise, there is always a resident entry and taxes can be paid on this entry and entries are not refused as soon as the conditions u/s 16 are met.