Income tax_service tax
Asha
(Querist) 14 February 2013
This query is : Resolved
When a landowner (L), having plain land or plinthed land) enters into a JDA with another partner (Developer(D))on the terms that the landowner shall bring in land(lying in his WIP) with all necessary permissions of construction, TDRs etc, and D shall do the construction on the land with his finance, infrastructure, material etc. The return for both the parties should be share in the saleable area in some pre-determined ratio. Also D shall give some fixed amount upfront to the landowner in the form of interest free deposit or something. In such a situation : Will the amount so given by D to L in the form of interest free deposit atrract any kind of tax under the income tax laws? Can L still show the land in his books (as only development rights shall be given to D to allow him to construct the property)? Can both of them maintain their set of expenses in their individual books of accounts and be taxed individually for their respective share of saleable area? What will be point of taxation under the income tax laws? How will this transaction be treated under Service Tax and VAT laws? Can any department treat it as an AOP? If yes, what would be the consequences, wherein we have maintained all records in individual books and paid all necessary taxes in individual capacity?
Sankaranarayanan
(Expert) 14 February 2013
where r u from what relation with this matter. r u be a partner
Anirudh
(Expert) 14 February 2013
How strange? My colleage recently rendered a detailed legal opinion on the almost similar matter / queries and charged Rs. 2.5 lakhs.
Raj Kumar Makkad
(Expert) 14 February 2013
If we believe upon Anirudh then I suggest you to incur some expenses to obtain such commercial query resolved at the end of some expert like the friend of Anirudh.
ajay sethi
(Expert) 14 February 2013
commercial query . engage a local lawyer
