Tax liability on development rights: promoters liable for state tax when completion certificate issued or project first occupied. Promoters receiving development rights or FSI, or long term lease for construction, are made liable to pay State tax on consideration received as construction services, monetary payments relatable to residential construction, and upfront lease premiums; the tax liability arises on issuance of the completion certificate or on first occupation, whichever is earlier, with defined terms drawn from the Real Estate (Regulation and Development) Act and specified services remaining under reverse charge as per prior notification.
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.
Tax liability on development rights: promoters liable for state tax when completion certificate issued or project first occupied.
Promoters receiving development rights or FSI, or long term lease for construction, are made liable to pay State tax on consideration received as construction services, monetary payments relatable to residential construction, and upfront lease premiums; the tax liability arises on issuance of the completion certificate or on first occupation, whichever is earlier, with defined terms drawn from the Real Estate (Regulation and Development) Act and specified services remaining under reverse charge as per prior notification.
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