TaxTMI 
TaxTMI 
Query: As per Notification No 03/2019 dated 29th Mar 2019 related to Real Estate Projects A developer has to submit Intimation before 20th May 2019 for declaring which option(5% without ITC or 12% with ITC) they have excised. If the developer has excised the option of 12% with ITC but the Intimation has not been submitted in prescribed format – Annexure-IV. If it is submitted in the current date i.e. 04/01/2020, what are the compliance issues and penalty if any?
Sub: In case of developer, failure to submit Intimation (Annexure IV) to choose option of either 5% or 12%.
04 Jan 2020 
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Failure to file Annexure IV results in a deemed tax option and invoices must conform to that election.
If a developer fails to submit Annexure IV electing a tax option by the deadline, the notification provides that the option is deemed to have been exercised for the applicable tax category; invoices issued before formal exercise are permitted but must conform to the option that will be or is deemed to be exercised. The supplied text does not set out specific penalties for late submission. (AI Summary)
If a developer fails to submit Annexure IV electing a tax option by the deadline, the notification provides that the option is deemed to have been exercised for the applicable tax category; invoices issued before formal exercise are permitted but must conform to the option that will be or is deemed to be exercised. The supplied text does not set out specific penalties for late submission. (AI Summary)