Rate of tax on Transfer development rights

[Bharat Cholleti]

Dear sir,

1)What is the rate of tax on TDR and SAC, since the GST on TDR charged by the Developer does Landlord will get ITC.

2) who will pay the GST on unsold flats of lanlord and developer at the time of completion/occupancy certificate.

3) what is the tax implication on sale of landlord share of flats during construction period.

Please advice.

AI Summary

Clarifying GST on Transfer Development Rights: Landlord's Liability, Developer's Reverse Charge Obligation, and Joint Development Scheme Tax. A discussion on a forum addresses queries about the Goods and Services Tax (GST) implications on Transfer Development Rights (TDR) and related matters. One participant explains that GST on TDR is not input tax credit (ITC) for the landlord but is the landlord's outward liability, paid by the developer under the reverse charge mechanism (RCM). The developer is responsible for paying GST on unsold flats at completion. Another participant clarifies that in a Joint Development Scheme, the developer receives 'Development Rights' (DR), not TDR, which is also subject to RCM tax.