Revenue neutrality in domestic related-party loans can require deletion of interest transfer pricing adjustments after domestic-transaction verificati...
HC held that assignment of long-term leasehold rights in an industrial plot by a lessee to a third-party assignee constitutes a transfer of immovable property benefits, not a taxable supply under GST Act. Relying on precedent in Gujarat Chamber of Commerce case, the Court determined that such transaction falls outside section 7(1)(a) read with Schedules II and III, thereby exempting the transfer from GST levy. Consequently, the show cause notice was quashed, and the petition was allowed, affirming the non-applicability of GST to leasehold rights transfer.
HC held that assignment of long-term leasehold rights in an industrial plot by a lessee to a third-party assignee constitutes a transfer of immovable property benefits, not a taxable supply under GST Act. Relying on precedent in Gujarat Chamber of Commerce case, the Court determined that such transaction falls outside section 7(1)(a) read with Schedules II and III, thereby exempting the transfer from GST levy. Consequently, the show cause notice was quashed, and the petition was allowed, affirming the non-applicability of GST to leasehold rights transfer.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4794
Join Channel
TaxTMI 
