The owner of the land approached the complainant`s developer and offered the property in common, as the complainant had expert constructions in residential housing. On the basis of the statements of the landowner, the complainant therefore agreed to develop the project on the ground. The JDA authorized the complainant`s developer to turn the planned land into housing. More than that, the FM speech gives as “149. The Joint Development Agreement, signed for the development of real estate, is responsible for paying capital gains tax in the year the project is completed. The main cause of accounting is only in the books of the owner and developers. Let`s talk one by one. B. The project completion phase reaches an appropriate level of development In JDA accounting, there will be three parts. Landowners, developers and buyers. As we know, the buyer will use the value of the asset as soon as he pays and will begin to depreciate it from the date of use in accordance with AS 6 and AS 10. In the absence of specific JDA accounting standards or guidelines, we must protect ourselves after LA 7, 9 and Revised Guidance Note on Accounting for Real Estate Transaction (Revised 2012) issued by the Institute of Chartered Accountants of India to account for JDA transactions.
In the calculation above, the developer takes into account the total cost of construction, including the owner`s share, by its share in units that do not take into account basic costs. Because there was no development activity on the ground at the time, which is the subject of a development agreement – the construction process has not even been initiated and there is no authorization for the construction of the building – Thus, the issue of the sale in the form of open land has not been received – The mere fact of receiving the refundable guarantee cannot be considered a consideration – The AO has calculated the capital gain on the whole land, although the auditor has retained 38%. The conclusion of the JDA`s accounting is rather a subjective question, different from case to case, based on the nature and nature of the common development agreement. A new section 194 – IC is introduced to provide that if a monetary policy counterparty is to be paid under the established agreement, the 10% tax is deductible from that payment. In my previous article Joint Development Agreement – A Business Model I had tried to discuss the model of the Common Development Agreement and a broad view of the tax impact under the Income Tax Act 1961. After receiving the various comments and requests, I am now trying to explain the accounting aspect with an illustration. On 27-7-17, we signed a 100/- stamp paper agreement that the owner will give 40 lakhs as a refundable deposit to the owner of the land, which will be refunded in the form of cash or order type. By dropping an apartment. By division, the master of the country received 9 apartments, and the owner received 11 apartments. On 28-7-18, the JDA was registered.