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JDA is a common factor in the real estate sector linked between the landowner and the developer in an agreement to build new buildings/projects. In return, by the developer agrees to provide as i. Vision of the sum of wolf, ii. The percentage of revenue or a certain percentage of the newly constructed project on the land in question depends on the conditions set by the parties. In the land use agreement, landowners enter into an agreement with the developer under which the landowner grants the developer development rights for the construction or development of a complex. In return, the developer agrees to allocate part of the built-up area in the form of dwellings. In this case, the taxpayer and the landowner completed a JDA for the development of land in residential land as well as amenities. The distribution of income between the taxpayer and the landowner is 25% and 75% respectively. The cost of development has been borne by the taxpayer. The taxpayer also entered into an agreement with customers for the sale of land built for compensation. The taxpayer sought a preliminary decision on whether, in the real estate sector, the tripartite model, known as the Joint Development Agreements, is often considered a model. Due to the high land prices, the possibility of such agreements has become normal in the sector.

If the agreement transfer of development rights with the owner, developer to pay taxes on RCM that day. In the case of MAARQ Spaces (P.) Ltd., 2019 (11) TMI 994 – AUTHORITY FOR ADVANCE RULING, KARNATAKA Applicant has entered into a joint development agreement with landowners for the development of residential complex land and development costs is borne by the applicant. Revenues from the sale of land are shared in a ratio of 75 per cent for landowners and 25 per cent for applicants. It was found that the applicant`s activities correspond to the total amount of service to landowners and the taxable value of the Rule 31 delivery (with appropriate means consistent with the principles and general provisions of Section 15). Hon`ble ITAT Hyderabad Bank `B` in the case of Adhinarayana Reddy Kummeta/Assistant Commissioner of Income Tax, Circle -11 (1), Hyderabad 2018 (4) TMI 37 – ITAT HYDERABAD stated, however, that Section 45 (5A) could not be applied as a material provision to the previous development agreement, which is certainly drawn to Section 2.47).v). The Joint Development Contract (also known as JDA) is a contract between a landowner and a real estate developer to build a new project on the owner`s land.