The legal responsibility to pay tax on Long term lease of land 30 years or more obtained in opposition to consideration in the type of upfront quantity and periodic license charge is on the promoter. As per the lease settlement, the promoter has to pay an upfront quantity of Rs. In case of delivery of long time hire of land for development of business apartments, tax shall be paid by the promoter immediately. Nevertheless, liability to pay tax shall come up instantly if such FSI relates to developing economical apartments. GST on the remaining portion of the worth of flat payable to the promoter on or after 01-04-2019 as in line with the agreement between the promoter and consumer shall be payable at an efficient charge of 1% or 5%, subject to the situation that the builder has not exercised the option to pay tax on construction of apartments on the outdated rates of 12% or 18%. If the XYZ developer workouts choice to continue to pay tax at an outdated efficient price of 8% or 12% by the tenth Might, 2019, then GST has to be paid @ 8% or 12% on the remaining portion of the worth of the flat; in such circumstances, the promoter can be entitled to proper credit of entering taxes and, as such, the value that he charges from the buyer ought to appropriately replicate this credit score.
What shall be the GST charge relevant to the remaining thi cong chong vang nha gia re tai ha noi portion of the value of the flat? Does the promoter have to pay GST on these quantities? However, for the building of a residential condominium, the liability to pay tax on the upfront quantity payable for a long-run lease shall come up on the date of issuance of the Completion Certificate. Nevertheless, the upfront quantity payable for the long-term lease, generally known as premium, salami, value, worth, development costs, etc., is exempt to the extent it’s used for the construction of residential apartments, which might be booked earlier than the issuance of completion certificate or first occupation. Development fees assist cover the costs related to growth. A development plan with blueprints might help to justify the mortgage. The land improvement company of Orissa has provided land on a long-run lease for ninety-nine years for the development of an actual estate challenge.
Annual/monthly rent or license payment payable for long-run lease is taxable under GST. When should the promoter discharge its tax liability on providing the long-term lease? The promoter has to discharge tax legal responsibility on an identical RCM basis. Am I eligible for a brand spanking new rate of 1% on identical? What’s the speed of GST relevant to the development of this condo? The apartment’s worth having a carpet area of eighty sqm is 48 lakhs. I am planning to buy an apartment in a newly launched project. Will such a mission for which several completion certificates are received partly earlier than 1st April 2019 and partly after that date represent an ongoing undertaking? The project was launched on 31.03.2019 by XYZ Builders at Noida.
