REAL ESTATE VALUATION ON TRANSFER OF AREA TO LAND OWNER

[GAURAV SHARMA]

Whether DEVELOPER can ignore valuation method as prescribed in Notification No.03/2019-CT(R) and determine valuation as per Rule 30 of the CGST Rules with regards to area being transferred to LANDOWNER under JDA?

[DR.MARIAPPAN GOVINDARAJAN]

In my view NO

[GAURAV SHARMA]

Sir,

Kindly share the reasons for the same.

Thank you

AI Summary

Valuation rule: developers must apply prescribed notification method for area transfers in JDA, not alternative GST rule. Valuation for area transferred to a landowner under a joint development agreement must follow the valuation method prescribed by the applicable GST notification and cannot be substituted by the developer with an alternative CGST Rules valuation approach; developers are obliged to apply the prescribed notification method for assessing taxable value of such transfers.