Taxation Of Collaboration Agreement

A new section 194IC has been inserted, under which the deduction of withholding tax (TDS) @ 10% is made applicable by the developer to any amount paid/payable in return to HUF`s resident natural person/landowner in accordance with the agreement referred to in section 45(5A) (no benefit in kind). In addition, no threshold is provided, i.e. it is applicable regardless of the payment number. Years: If you concluded a cooperation agreement before 01.04.2017, the author considers that you were subject to capital gains tax at the time of the conclusion of the contract with the contracting authority. The date of delivery should be the date of the agreement for the sale of housing Ans: in a cooperation agreement, when the owner buys part of the land after the renovation and pays the client for the construction costs on his part of the land, then the payment that the owner gives to the client for the owner`s share, the construction of a new residential house eligible for exemption u / s 54 or 54F depending on the type of capital sold according to the terms of the contract. (ii) `specific agreement` means a registered agreement in which a person owning land or buildings or both agrees to allow another person to develop a real estate project on such land or a building, or both, taking into account a share of land or buildings or both in such a project, with or without payment of part of the consideration; – Once the project is completed, Mr. X is entitled to 60% of the built-up area of the project in the form of housing/shops, etc. in accordance with the Annex to the Agreement Notwithstanding the provisions of Section 194-IA, any person responsible for the payment of a sum in consideration other than a benefit in kind, in accordance with the agreement referred to in Section 45, Subsection (5A), shall, at the time of the credit, credit this amount to the beneficiary`s account, or at the time of payment in cash or by issuing a cheque, change or any other type; Depending on the previous date, deduct an amount of 10% of the sum as income tax.┬áMylan Inc., a publicly traded pharmaceutical company, has filed a petition with the Finanzgericht challenging a $100 million tax deficit (Mylan, Inc., T.C 16145-14, petition filed 7/11/14). This gap relates to a dispute between the parties over whether a transaction should constitute a license agreement or a sale under tax laws. For the sake of simplification, the taxation of the developer should be exempt from an H control. Examples of judicial gaar for development agreements: in order to minimise the real harshness that the landowner may face in paying capital gains tax in the year of the transfer, it is proposed to insert a new subsection (5A) in section 45 to provide that, in the case of an assesse which is a single or unmarried family, it is proposed to insert a new subsection (5A) in section 45, in order to provide that, in the case of an assesse which is a single or Hindu family, which concludes a specific agreement on the development of a project, thus, capital gains are subject to income tax as income from the previous year in which the school-leaving certificate is issued by the competent authority for the whole project or a part of the project. .

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