(87) “mandatory” means that it is prescribed by rules established by this Act on the recommendations of the Council”, clause (iii) of the Explanatory Note to Section 48 defines the term “indexed acquisition cost as follows: Let`s take another example, Mr. X has land and some slum dwellers have entered his country. Now, the government, through its slum development scheme, has turned to Mr. P. for the development of his land for slum dwellers. Mr. P. receives “transferable development rights” from the government in return. Mr. P may use these “transferable development rights” in any country, subject to certain conditions. NOTE: From above, it is clear that the transfer of development rights is not taxable under the Goods and Services Tax Act, 2017, in accordance with Communication No.
4/2019 – Central Tax (rate) dt. On March 1, 2019, the service was exempted under development fees on April 1, 2019 or after the construction of residential housing by landowners. However, such an exemption is subject to the sale of dwellings before the date of issue of the certificate of completion or on the date of initial acquisition of the project, whichever is earlier. Girnar Traders Vs State of Maharashtra (2011)3SCC: stated that the right of rural development is a right to develop or develop the country, the building or both. It is therefore a benefit that derives from the country and is therefore included in the definition of the country. The fact that the term “land” encompasses not only full ownership of the land, but also the rights derived from it, is a sound legal situation. Sunil Siddharthbhai v. CIT [1985 (9) TMI 7 – SUPREME COURT] TDR under JDA is neither “leasing” nor “license”, as in delivery u/s 7 and entry sl. 2 (a) of Schedule-II. The license is an authorization to use the country without the right to exclusive possession. Leasing means that there is a right to enjoy the property for a certain period of time. TDR is therefore not a lease transaction, because it is a right to develop a country.
As we know, Section 15 of the CGST is the relevant section for evaluations under GST. To answer this question, it is therefore important to start by understanding the provision of section 15(5) of the CGST Act 2017, which is worded as follows: this value is therefore calculated taking into account the value of similar dwellings invoiced by the developer closest to the date of transfer of those development rights where development rights have been transferred for remuneration in the form of residential and commercial housing. . . .