Tag Archives: apartment

Memorandum for removal of service tax on under construction property

Confederation of Real Estate Developers’ Associations of India (CREDAI) a real estate industry body submitted a memorandum to the Finance Ministry concerned with the appeal for removal of service tax on housing complexes under construction. The Chairman of CREDAI, Kumar Gera stated that they have put forth their concerns and suggestions and also discussed the probable impact of the provisions with the Ministry.

According to Gera, the money collected through the imposition of service tax on real estate development will not be big enough, rather it would majorly lead an overall negative sentiment and a net loss of revenue. In budget 2010,Service Tax is imposed on 33 per cent of total selling price.

According to CREDAI, it was an impractical proposal to levy service tax on under construction complex since it would lead government giving preference to the secondary market of completed projects. An understanding of the problem and required corrective steps will be taken is a hope from the government. The list of recommendations was built in consultations with KPMG, its knowledge partner and was submitted to Y G Parande, a Finance Ministry Member (Budget).

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Registering a property could soon become easier

The government is planning to replace the Indian Stamp Act 1899 with a simpler law that will do away with a large number of provisions and fees.The finance ministry has already initiated a preliminary exercise to draft the new law and is hopeful of finalizing it by the end of the year. The draft will need to be discussed with State governments to elicit their views as well.

Under the Indian Registration Act, the purchase of a house should be registered with the office of the registrar or sub-registrar of the district within whose jurisdiction the property is situated. Registration of property helps trace the history of ownership of a property.At present, the documents are physically verified by different departments, making the process of registration a time-consuming one. The new legislation is expected to address the problems being faced in registration of properties. The proposed legislation is likely to recognize electronic stamping and electronic payment of stamp duties. At present electronic stamping and electronic payment of stamp duties facility is available as part of the e-governance initiative for companies that wish to file their papers online with the Registrar of Companies.

The government is also planning to rework the current structure of stamp duty fees and penalties. Duties charged in the smaller denominations could be replaced with specific amounts or be calculated as a percentage. It is to be noted that the Law Commission had taken up the issue of amending the Indian Stamp Act last year. It had suggested in its report that the required fee for any transaction or court fee should be paid by demand draft, cash, or postal order rather than through non-judicial stamp papers or special stamps.

Special drives for property tax recovery-NMC

Special drives for property tax recovery after Diwali

Nagpur Municipal Corporation (NMC) has directed all the zone officials to prepare a list of property tax defaulters.This year property tax collection is 2 crore more than last year. Till date (September 16) the property tax department has recovered only Rs 17 crore property tax.

The Nagpur Municipal Corporation will embark on a special drive to recover property tax from over five lakh defaulting after the festival season.The zone officials will prepare a list of property tax defaulters.The property owners who have unpaid taxes of Rs 5,000 and more will be issued notices by the respective zonal offices.As per the new policy, property tax is being calculated on the basis of rental value or the annual letting value of the property. Thus the revaluation exercise essentially involves the revision of standard rent of properties in a particular area.

once the elections and the festival season ends we will start special drives to complete the target.

Of the 340 approved posts, only 193 employees have been deputed to the property tax department to complete the target given by NMC. Even among these, over 100 employees are presently engaged in the state assembly election duties, which has forced NMC to slow down the recovery work. However, once the elections and the festival season ends NMC will start special drives to complete the target.In 2009-10 too the department expects to cross the Rs 100 crore mark.

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Special NMC drive

Property transaction in post office

From next month, property buyers can pay their registration fee and stamp duty in near by post office. Karnataka Stamps and Registration Department is considering to launch the facility in post office and public sector banks across the state for property registrations. On a pilot basis, the department is planning to launch the facility in 75 post offices in Bangalore by next month.

A public sector undertaking, Stock Holding Corporation of India Limited (SHCIL) would be in charge of keeping a centralized record of all e-stamping documents. The department in association with SHCIL, is implementing e-stamping to put an end to illegal benami registrations and for plugging revenue leaks.

The postal department wants to charge Rs 10 as fee from for e-stamping denominations up to Rs 100, and Rs 15 for e-stamping denominations above Rs 100. The post offices have expressed interest and are waiting for a final approval.

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Banks refuse to process loan applications without Khata

Banks and financial institutes refuse to process home loan for borrowers without Khata certificate. The government has stopped issuing new khatas. Even changing the khata from seller to buyer is not being done, citing administrative issues.

After a long impasse over registration of properties, which has now been solved, the vexed khata issue is hindering the home loan process and has left property buyers in the lurch. To facilitate sale of properties in former urban local bodies around the city, the government on August 14 suggested alternative documents for registration — copies of khata and assessment extracts issued by CMCs, TMC or village panchayats under whose jurisdiction the buildings/land belonged.

According to the inspector general of registration and commissioner of stamps, K R Niranjan, the government communication has been sent to all sub-registrars but not the banks.

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Buyers in new areas not getting home loans

Not paying your property tax can land you behind bars

According to MCD, only nine lakh people pay property tax, while according to its estimate, there are more than 30 lakh properties in the city. The Municipal Corporation of Delhi (MCD) has launched an amnesty scheme. The amnesty scheme will be open from Tuesday to October 31.

The Municipal Corporation of Delhi (MCD) has launched an amnesty scheme under which tax defaulters can clear their dues without having to pay a penalty or the interest amount. But those who fail to pay the tax by October will not only face penalties like sealing of bank accounts and attachment of property but may also be jailed for a period of seven years.

Under the scheme, all the property tax payers in the city will get a special identification number similar to Permanent Account Number from the civic agency. In future, the facility will be extended to other property owners too.The agency said that in future, property owners who submit pay the tax will get benefit in getting the building plan sanctioned.

The 30% penalty will be waived off for those paying property tax dues
before October 31. In addition to this, 1% interest levied every month on unpaid amount will not be charged from them. For the scheme, the civic agency has constituted special teams in all the 12 zones and the property tax headquarter at Lajpat Nagar.

Notices have been put up in building for lifts operating without license

Chennai: Nearly 40 notices have been put up in buildings, including residential structures, at K.K.Nagar, Virugambakkam, Kodambakkam and Ashok Nagar since Tuesday. According to the notice, lift owners are advised to operate the facility after obtaining licence under the Tamil Nadu Lifts Act 1997 within two months.The Tamil Nadu Electrical Inspectorate is serving notices.

According to the official, there are nearly 7,000 licensed lifts in the city. Licences of only 30-40 per cent of lifts had been renewed. About 1,000 lifts have identified, whose licences have not been renewed, and 500 that are being operated without licence.The inspection is carried out for the lifts in use for which permission have not been obtained based on petitions received by the department.It is for the first time that such a drive is being conducted.Earlier, owners of such buildings cautioned by placing an advertisement in the media.

As per the Tamil Nadu Lifts Act 1997, the defaulters would be levied a penalty up to Rs.1,000 and those who continue to flout the rules would have to pay Rs.50 for every additional day of use.
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Notices for lifts without license in city