A and B have reached an agreement for the construction of a building. Under the terms of the agreement, they have not entered into a partnership and A is required to contribute to the country, while B will provide his services as general contractor. After the completion of the building, A receives 60% of the revenues from the sale or rental of the building and B 40%. Sometimes the landowner can have the construction built for his own use for the purposes of his residence and agrees to share a potion of built area with the developer, even according to a JDA model. In this case, the landowner never intends to give up his share of the built-up area. So, in such a situation, if TDR is taxable? The author considers that TDR should not be taxable in such cases, as it has never been with the intention of doing business or as part of the promotion of a transaction by the owner. The conditions of Section 7 are therefore not fully met and therefore there should be no supply. In addition, there will never be a commercial motive or profit in such transactions. However, it can also be argued that the definition of “business” as defined in Section 2(17) is very broad and encompasses any trade, trade, manufacturing, occupation, vacation, adventure or other similar activity, whether it is a financial benefit, regardless of the magnitude, frequency, continuity or regularity of that activity or transaction. Therefore, the activity of transfer of development rights by a landowner, individual or not, is a service subject to the GST.
A joint venture written agreement may, if necessary, provide evidence of the parties` intent. However, the existence of such an agreement alone is not sufficient evidence of the existence of a joint venture (although it clearly indicates the existence of a joint venture), that the parties do not intend to create a partnership or that the parties intend to create a joint venture. 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. A social interest is generally considered a capital asset for income tax purposes. As a result, the sale of a partnership interest generally results in a capital gain or loss. However, the participation of a joint venture is not recognized as a capital asset and the sale of such interest is imposed as if a portion of each of the company`s assets had been sold. Therefore, if a project is funded by investors, investors have no other interest in the project and do not participate in its revenues or expenses, the project would be considered a joint venture. Similarly, when a landlord leases land in a building to a tenant, the monthly rent is calculated as a percentage of the profits made by the tenant in the course of his activity and the lessor has no other involvement in the tenant`s activity, the landlord and tenant would not be considered a joint venture. 1.
an agreement in which two or more persons cooperate within a limited and defined company, which is not a corporation, a trust company or a corporation whose expenses and revenues are distributed in mutually agreed parts (i.e. the department`s administrative definition of the term “joint venture”); or note that some courts have found that there will be no partnership in the absence of a business name, a joint bank account and a profit sharing. Under common law, a company name and a joint bank account may indicate the existence of a partnership, but they are not sufficient evidence of a partnership.