State tax liability on development rights arises upon transfer of possession or rights through conveyance or allotment. Notification designates two classes of registered persons for state tax on supplies involving development rights and construction services: suppliers of development rights receiving construction service as consideration and suppliers of construction service receiving development rights as consideration. In both cases the liability to pay state tax arises when the developer or builder transfers possession or the right in the constructed complex, building or civil structure to the supplier of development rights by executing a conveyance deed or similar instrument such as an allotment letter.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
State tax liability on development rights arises upon transfer of possession or rights through conveyance or allotment.
Notification designates two classes of registered persons for state tax on supplies involving development rights and construction services: suppliers of development rights receiving construction service as consideration and suppliers of construction service receiving development rights as consideration. In both cases the liability to pay state tax arises when the developer or builder transfers possession or the right in the constructed complex, building or civil structure to the supplier of development rights by executing a conveyance deed or similar instrument such as an allotment letter.
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