Liability to pay state tax on development rights and FSI arises on completion certificate or first occupation. The notification designates promoters who receive development rights or FSI, or long term lease of land for residential construction, as registered persons liable to pay state tax on consideration paid in the form of construction services, monetary consideration for development rights/FSI, upfront lease amounts, and the promoter's supply of construction services against development rights/FSI. The tax liability arises on the earlier of issuance of the completion certificate by the competent authority or first occupation. Definitions are drawn from the Real Estate (Regulation and Development) Act; reverse charge applicability for covered services is maintained as per the earlier notification.
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Provisions expressly mentioned in the judgment/order text.
Liability to pay state tax on development rights and FSI arises on completion certificate or first occupation.
The notification designates promoters who receive development rights or FSI, or long term lease of land for residential construction, as registered persons liable to pay state tax on consideration paid in the form of construction services, monetary consideration for development rights/FSI, upfront lease amounts, and the promoter's supply of construction services against development rights/FSI. The tax liability arises on the earlier of issuance of the completion certificate by the competent authority or first occupation. Definitions are drawn from the Real Estate (Regulation and Development) Act; reverse charge applicability for covered services is maintained as per the earlier notification.
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