ONE OF MY CLIENT PURCHASED AN AGRICULTURAL LAND CURRENT FINANCIAL YEAR. AND HE LEASED THE LAND TO A DEVELOPER FOR AN JOINT VENTURED AGREEMENT OF RS. 30 LAKHS. THE DEVELOPER WHEN COMPLETED THE PROJECT BOTH OF THEM SHARE THE PLOTS OF IN THE RATIO OF 69:31. NOW MY QUERY IS MY CLIENT RECEIVED THE LEASED THE AMOUNT THROUGH CHEQUE. AND HE HAS TO REPAY THE LEASED AMOUNT WHEN COMPLETION OF THE PROJECT. BUT THE DEVELOPER PAID AMOUNT WITHOUT MADE ANY TDS. AND ALSO HE IS NOT CHARGED ANY GST AMOUNT IN THE AGREEMENT.
MOST IMPORTANT THING IS THAT MY CLIENT RECEIVE NEARLY 18 TO 19 PLOTS OF HIS AS PER THE AGREEMENT. IF MY CLIENT GOINT TO SELL THE PLOTS HE NEED TO OBTAIN THE GST REGISTRATION BECAUSE OF EACH ONE OF PLOTS WILL COST MORE THAN 40LAKHS RS. PLEASE GUIDE ME HOW TO TREAT ENTIRE ALL THESE TRANSACTION.
JDA deed and there is no good will amount paid to my client. Only advance amount until project completed returned to developer for the advanced amount just made it as transaction for this large transaction there is no tax effect.
Confused yes sir advance amount but need not deduct tds amount. And then the developer does not have gst no, is there any chance to araise problem sir.
01 August 2022
It being security deposit, no TDS is required to be deducted. Let developer obtain GST no now. Not required at the time of JDA registration.
My Client will receive 18 plots at Time of Project completed. So He Will sell one by one. Is my client needs gst registration because he Is govt teacher.
Dear sir last time also asked same query You have guided Me well. In that query Good Will received by my client. But My client misguided by his brother his C A told him that there is few clauses save CAPITAL gain tax on good will need not pay more income tax but How which clauses Will save tax. Please guide Me sir anything possible way to save tax my doubts is good received nothing investment made in bonds , schemes, purchase House.
Please clarify Me how they guided nothing invested.
01 August 2022
1. The owner need to obtain GST registration only if he is also developer & sale the services. 2. Yes, the LTCG can be invested in house property u/s. 54F to save tax.
But a government servant can apply gst registration. One more thing Sir my client did invested the good will amount but he utilised for his personal use even though he advised by some one there is a clause will save your tax. How it's possible I told him no you liable to pay taxes but He belived his advises. So that why I confused dear sir.
01 August 2022
He has to obtain GST only if he also joins the development. Till now there is such restriction, but he has to check it in his department. Unless the good will is transferred to specified investment in house property or bonds there will not be any exemption, so no question of any rebate in tax liability.
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