Gst and capital gain tax in jda

Gst and capital gain tax in jda

I am Vishal from Pune.

I entered in JDA in 2013 

I have to get 20000 sqft sales area as per agreement.

I had not get any consideration as flat still 2021 except refundable amount 1 Crore.

In October 2022, I decided to take 10000 sqft from developer (which in under construction) and remaining 10000 sqft in April 2023 (which is also in under construction ) 

( completion certificate not received from govt authority)

And return refundable Amount 1 crore also in April 2023.

Now my Question is -

 1. How much GST I have to pay to developers and what is slab for same I.e 1% , 5% And on basis of which amount of flat per sqft?

(As there is both below and above 45 lakh flats available)

2. How much capital gain tax I have to pay in 2022 & 2023?

3. Is 54F for exemption of capital gain is applicable for me when I desire to construct a house within 3 years of transaction?

4. Is it possible for me to sale under construction flats to customers as a landowner after taking allotment via conveyance deed from developers?
(Is GST applicable for such transactions again or not ?)

Note - 
A. Ready reckoner In my area is Rs 5000 / sqft for sales area for residential unit in year 2022.
B. Ready reckoner In my area is Rs 50 / sqft for open plot in year 2000.
C. Ready reckoner In my area is Rs 825 / sqft for open plot in year 2022.

Please give me specified calculations as possible.

Thanks and regards,
Vishal

Asked 2 years ago in Capital Gains Tax

Dear Vishal,

In reference to your query please note:

1. GST in your case would be payable on the value charged by the promoter from 1st independent sale, and in case the area of flat is less than 60 sqm and 45 lakhs gross value would be 1%, otherwise 5% if either condition is not satisfied.

2. The taxable value of consideration in the hands of the landowner would be the fair market value of the project including land on the date of execution of the JDA. Further as per Section 45(5A), such tax would be payable in the year when the transfer takes place.

3. Yes the benefit of 54F would be available to you subject to the conditions laid down therein.

4. Yes as a landowner you can very well sell your share of flats, however conveyance in this case is not required. You can sell during construction phase itself and you have to charge GST from the final buyer, and you would be eligible to claim ITC of GST charged by the developer to you, provided the rate you charge from the final buyer is higher than the rate charged to you by the builder.

Please connect in case of any further clarifications.

Thanks & Regards,

CA Aditya Dhanuka.

Aditya Dhanuka

CA, Kolkata

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