Authority for Advance Ruling — Real Estate Development – The applicant is a private limited company, carrying on real estate development activity and owns a piece of land at Hyderabad. The Company was permitted to develop the said land and construct a multi-storeyed building. The applicant sought an advance ruling as to whether the pooling of land by way of amalgamation of the separate piece of land would constitute a supply under the Act, 2017 (ii) whether the construction activity undertaken by the Company, with respect to the share belonging to the Partners would be treated a Supply of Service under the Act (iii) whether the recovery of construction cost by the Company from the Partners would be the transaction value (iv) whether the vesting of the constructed portion upon the Partners, would independently constitute a supply besides the supply on account of recovery of construction cost as aforesaid by the Company.

Held that:- The Hon’ble Authority for Advance Ruling held that the pooling of land by way of amalgamation of the separate piece of land would not constitute a supply under the Act. The activity undertaken with respect to the share belonging to the partners is a supply of service under the Act. The applicant is providing service to owners who are related persons, therefore, the value of the construction service supplied shall be 110% of the cost of provision of the said service. The vesting of the constructed portion upon the partners cannot be treated as an independent supply as neither any service nor any consideration has been received.Gowra Ventures Private Ltd [2018] 2 TAXLOK.COM 333 (AAR-Telangana)