Tax liability of un registered landowner on TDR( transfer of developmental rights)

[NUKALA KUMAR]

JDA excecuted on 1-9-2018 

Land owner is unregistered 

As per 04/2018 notification liability to tax on TDR is land owner

AS per 04/2018 notification its only the registered person liable to pay tax on TDR

After 1-04-2019 liability has been shifted into the hands of developer under RCM

Q1: Can department issue notice to un registered land owner demanding for tax?

Q2: can department assess the un registered landowner under section 63 of GST ACT?

AI Summary

TDR tax liability hinges on possession transfer date; pre-1/4/2019 landowner liable, post-1/4/2019 developer liable under RCM; see s.63 Under Notification No. 04/2018 (25-01-2018) the tax incidence for TDR arises when the developer transfers possession/right in the constructed property back to the supplier of development rights by conveyance or allotment; liability therefore depends on that triggering event's date. For a JDA dated 01-09-2018, if the taxable event occurred before the reverse-charge regime effective 01-04-2019, the landowner may be held liable; after 01-04-2019 liability shifts to the developer under RCM. The department may issue demands and assess an unregistered landowner, including under section 63, subject to applicable turnover thresholds and facts.