Tax Realty

  Intricacies on TDS payment to Land Owner by Promoter in Joint Development   Section / Description TDS Threshold Points to Ponder 194IC 10% Any amount. · There should be Joint Development Agreement (JDA) registered as mentioned U/s.45(5A). Such agreement is termed as Specified Agreement . · Applicable only in case of consideration made in Cash, Cheque, draft or by any other mode. · Not applicable for the value of Area Sharing given by the Promoter to the Land Owner. · Not applicable for Agricultural Land . · Provisions of Section 203A shall apply for Promoter for obtaining a TAN and accordingly file TDS returns.     Analysis of few related issues:   1.  What is the position of Non-Resident Indian – Land Owner entering into JDA ? In the case of Non-Resident Indian entering into JDA, the promoter has to deduct TDS on the payment made in cash/draft/ch

  Basic GST information required in Real Estate.   From 01.04.2019 the effective rate of GST applicable on construction of residential apartments by promoters in a real estate project are Sl No. Description Effective Rate of GST ( After deduction of Value of Land ) 1 Affordable Residential apartments 1% on total consideration (Without ITC ) 2 Other than Affordable Residential apartments 5% on total Consideration (without ITC ) 3 Commercial Apartments in a Residential Real Estate Project. 5% on total consideration ( without ITC) 4 Commercial Apartments in a Real Estate Project. 12% on total consideration ( with ITC ) Conditions Mandatorily to comply  :- (Sl. No 3 of Notification No. 11/2017- CTR are mandatory)     A promoter shall purchase at least 80% of the value of input & input services, from