Dear members,
We have entered into a joint development agreement wherein we are the land owners and the contractor / builder would construct 4 floors (ground plus 3) of which we get one floor plus some additional cash. We have an option of buying another floor by a) foregoing the additional cash that we were to receive plus b) investing a bit more on the additional floor.
The queries are
a) Will GST be applicable to the land owners at any stage and at what percentage? if yes, when is it liable to be paid to the government.
b) Will Income tax be applicable for the land owners where in they get a new property and / or additional cash. Given that the partial / entire consideration will be reinvested in property, can sectioin 54F exemption be claimed as the consideration is invested in residential property?
Looking forward to the responses. Happy new year to all of you too!
Warm regards,
Asish
CAclubindia
