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GST on TDR?

Prakash Pamnani (12 Points)

27 June 2017

Whether GST is applicable on sale of TDR (Transferable Development Rights)?

If yes, at what rate?

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177824 Points)
Replied 27 June 2017

Yes........

Rate not clarified........ but may be allowed as 12%, as applicable to builders.......

Otherwise it is 18%, as general catagory of service.

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Prakash Pamnani (12 Points)
Replied 28 June 2017

Thanks Dhirajlal

Mine view is that if it is applicable, GST rate of 18% be applicable.

It won't be 12%. It won't fit into construction of complex services neither it is an easement etc.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177824 Points)
Replied 28 June 2017

Yes, I am also of same view, but more analysis is required for its perfect fitment.

cnmohan (proprietor) (22 Points)
Replied 17 August 2017

TDR - Transferable Development Right is akin to Land or the associated Capital Asset. The Hon'ble SC has ruled in many cases that TDR having a 'NIL" value is a CAPITAL ASSET and as such Capital Gians are not applicable on transfer of such TDRs. That being the case, and on similar line of argument - If the Original Owner of TDR transfers such TDR ( let's call this Primary Transfer) then it will not attract GST either. However, If the person who buys such TDR and then sells/transfer it to the next person ( i.e., Secondary Transfer) then it will attract GST.

Comments Welcome.