Introduction:

When it is seen from the commercial perspective, the word ‘advertisement’ plays a vital role in the success of any business or commercial activity. The main objective of any advertisement is to reach out to customer and increase awareness of brand/product/service.

The word ‘internet/digital’ has changed the lifestyle globally including the way of conducting a business or transaction. Advertisement is not an exception in digital model and in fact online advertisement has created lot of new business opportunities across the globe.

Read more: Sale of Space for Online Advertisement is Royalty & Taxability of Payments for Google AdWords...

We are aware that the taxability of Transferable Development Rights (for brevity ‘TDR’) has undergone a significant change with effective from 01^st April 2019. The liability was shifted on the developer subject to certain conditions. The reasoning of such a shift to developer only if has unsold flats as on the date of completion certificate appears to be inspired from the Honourable Hyderabad Tribunal in the matter of Vasantha Green Projects[1].

With the shift of burden of the taxability of TDRs on the developers, has provided a great relief to the land owners. Unless the land owner intends to sell his share prior to completion certificate, there is no requirement for him to obtain the registration under GST laws. As discussed in our previous articles, the land owner is only obliged to pay tax on two transactions. One, being the transfer of development rights to the developer and two, being the sale of flats falling his share to the customer prior to the completion certificate. Since, the taxation on transfer of development rights has been shifted to the developer, he is relieved from the burden of registration qua such transaction. The other transaction which compels his to obtain registration is sale of flats falling to his share prior to completion certificate. If the land owner retains or sells them post completion certificate, then there is no obligation to register under GST laws.

Read more: GST On TDRs for Commercial Projects – Also under Reverse Charge?

It is a proud moment for our organisation on achieving this rarest milestone. The one in your hand is the 100th edition. When we thought to release our first edition, we were bit sceptical, whether we could continue to do this for at least couple of months. But we are here, releasing our 100th edition. 

Authoring articles which require detailed research and study is not an easy task. Repeating this for 100 times is a herculean task. At this juncture, I asked a question to myself. How did we do this? The only answer I got was, that we took the monthly release of journal to our heart and thought this is one of the few ways to show the passion we have towards the profession. Undoubtedly, the feedback that we have been receiving from the readers was another motivation to keep the journal live and kicking.

On this occasion, I would like to share one cherishing anecdote. Me and my partner were off to deliver a seminar out of Hyderabad. The journey to the venue from Hyderabad is close to 3 hours. One of the speakers of the same seminar was a senior chartered accountant who has immense expertise in the areas of direct taxation. The organisers have introduced us to the said senior professional. When we were introduced to him, the organisers have stated that these people are from SBS firm and release a monthly journal containing detailed articles. The senior professional smiled at us and to our surprise shown a copy of our recent journal in his hand. He said since it is a long ride from Hyderabad, he has taken a print of the recent edition to read in the car. We are much elated to find a copy of journal in his hand. We felt so happy that our journal was read by senior professionals not as a routine forward but with a serious intent of taking a print and reading it out. Incidents like these, kept on motivating us and helped us in reaching this milestone.

Read more: SBS Wiki E Journal November 2022

We all are aware that the settlement of retiring partner from a partnership firm is not an easy task. The journey, the ups and downs, the emotions involved, the timing of retirement and various other factors are evidently enough to create a tense environment between the retiring partner and continuing partners. To add fuel to the fire, the taxation issues also contribute a lot to this uphill task.

On the income tax side, in our previous articles, we have addressed the issues, pre and post insertion of new Section 9B and Section 45(4). The new insertions have provided certain respite but has not taken away the complete strain. May be in coming years, the incidental and ancillary issues surrounding that will also be resolved, paving way to more clarity. On the GST side, the issues started to crop up, mainly due to inadequate legislature. In this article, we will try to raise certain important issues on that front.

Read more: Retiring Partner and Partnership Firm – Certain GST Issues