Tax liability on development rights arises at project completion or first occupation, making promoters responsible under reverse charge. The notification designates promoters who receive development rights or FSI, or long term lease of land for residential construction against upfront consideration, as the registered persons in whose case tax liability for supply of development rights, monetary consideration, upfront lease amounts, and construction services supplied against development rights/FSI shall arise. The liability is triggered on issuance of the completion certificate or on first occupation, whichever is earlier. Definitions of apartment, promoter, project, REP, RREP and FSI are provided, and the notification confirms applicability of the reverse charge mechanism for the covered services.
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 arises at project completion or first occupation, making promoters responsible under reverse charge.
The notification designates promoters who receive development rights or FSI, or long term lease of land for residential construction against upfront consideration, as the registered persons in whose case tax liability for supply of development rights, monetary consideration, upfront lease amounts, and construction services supplied against development rights/FSI shall arise. The liability is triggered on issuance of the completion certificate or on first occupation, whichever is earlier. Definitions of apartment, promoter, project, REP, RREP and FSI are provided, and the notification confirms applicability of the reverse charge mechanism for the covered services.
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