04 July 2018
A Joint Development Agreement (JDA) exists between a landowner and a developer for construction of flats. In such development agreement, both parties will share revenue in ratio of 5:95. All the revenue money shall be received by the developer and all the development expenses will be incurred by the developer. How the GST liability will be discharged in such a case in the hands of both developer as well as landowner?
05 July 2018
Gst liability would arise in the hands of landowner, for transfer of development rights, and to the developer, for rendering construction services. The time of supply when payment is received or when invoice is raised whichever is earlier.
CAclubindia
