Tag Archives: news

Hike in concession rate of service tax

As per the budget proposal for 2010-11, the finance ministry has suggested service tax on construction and sale of property. The contractor was entitled to claim abatement to the extent of 66.7 per cent of the value of services rendered by him. But recently, the Finance Minister has increased the concession on service tax applicable to construction of residential complexes from 66.7 per cent to 75 per cent of gross value of property, including land value.

Suppose you are buying a flat costing Rs. 50 lakh (cost of land, Rs. 40 lakh, cost of construction, Rs. 10 lakh). As per the 2010 budget, the applicable service tax was supposed to be Rs. 171,495 calculated at 10.3 per cent on 33.3 per cent of property value. With the amendment announced by the Finance Minister, the applicable service tax comes down to Rs. 128,750 calculated at 10.3 per cent on 25 per cent of property value. Thus, the savings will be Rs. 42,745.

The Finance Minister has also declared exemption from service tax for low-cost housing segment (less than Rs. 20 lakh). Suppose you are buying a flat in a smaller city for Rs. 18 lakh (cost of land, Rs. 6 lakh, and cost of construction, Rs. 12 lakh). With the amendment announced by the Finance Minister, there would be no service tax applicable.

The notification will be published in July 2010. Till issue of notification, there will be no service tax for under construction property. Property Buyers can pay amount for property and service tax will not be levied till July 2010. After issue of circular or notification, Service tax will be applicable only for under-construction properties and not for resale property.

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Two held for the murder over availability of water

Ahmedabad:  Jayesh Patel and Vijay Patel residents of Suramya Society in Nikol were arrested for the murder of Gordhan Gedia. Gordhan Gedia was allegedly killed by Jayesh Patel and Vijay Patel following a scuffle that broke out between residents of Suramya Society in Nikol over availability of water.

Vijay Patel, resident of Suramya Society in Nikol attacked a group of people during a meeting that was held on the terrace of their apartment to resolve the long pending issue of non-availability of water. Gedia was killed and seven others injured in te attack.

Police inspector of Odhav police station, MS Sindha said that Patel had broken some pipelines in his building a few days ago. A meeting was later called to discuss the issue. In the meeting,Gordhan Gedia was allegedly killed  following a scuffle that broke out between residents. With the arrest of Patels, the Odhav police have so far arrested four people including Kalu and Ashok Raghuvanshi in this connection. Meanwhile, the Odhav police have intensified their efforts to nab the two other absconding accused.

The Government may remove the mandatory three-year lock-in period for overseas investments

To boost FDI in real estate Govt may scrap 3-year lock-in

Delhi:To boost foreign direct investment (FDI) in real estate, the government may remove the mandatory three-year lock-in period for overseas investments in the sector.The department of industrial policy and promotion (DIPP) has proposed this move, with a draft cabinet note on the proposal being circulated for inter-ministerial consultations.

 

Lodha builders honored with Best Developer Involved in High-End Residential Properties

Mumbai: Lodha builders Pvt Ltd, Mumbai’s premium real estate developer, has been honoured with “Best Developer Involved in High-End Residential Properties” across India, by construction source india, which is unique in offering a holistic platform for the construction and building material industry. Construction source india had honored architects and builders for their contribution to various aspects of urban development.

 

The online building plans acceptance scheme started by PCMC

Pune: In order to speed up the working process in the administration the Pimpri Chinchwad Municipal Corporation (PCMC) has introduced the e-governance system. The introduction of e-governance system has facilitated online submission of property tax, submission of tenders, water tax and system for submission of octroi statements for a large number of industries. In addition to this, the online building plans acceptance scheme started by PCMC on a trial basis.

 

Bangalore Shifts into one BHK homes

Bangalore: Many developers in the city are looking at building— 1-BHK ranging between 500 sqft and 800 sqft with a price tag of around Rs 10 lakh to Rs 15 lakh. Electronic City, Whitefield, Marathahalli and Bannerghatta Road are the current hotspots for 1-BHK and studio apartments. Brigade Group, which just announced the launch of its value homes, says that 30% to 40% of the 10,000 units it’s expected to build would comprise 1-BHK units.

 

The new assembly complex will lead by example in the area of water conservation

Chennai: The Sewage Treatment Plant (STP) coming up inside the new Tamil Nadu Assembly complex in the Omandurar Government Estate on Anna Salai will help save about 2.5 lakh liters of water a day. The rainwater harvesting structures there will store 1.2 lakh liters while the STP, likely to come up on the Sivananda Salai side, will treat 2.5 lakh litres of water everyday.

Residential prices have started to look up in all markets

Hyderabad:According to the report, NCR and Mumbai have seen values climb up with the return of investors and an end users interest in the realty market in the third quarter ending September 2009.However, prices in cities in south India have stabilized, with the exception of Bangalore, which is still witnessing a slight correction.Rental and capital values in third quarter witnessed minimal correction in Hyderabad as price points inched closer to buyer expectations.

UP govt decided to increase property registration fee

Lucknow: The Uttar Pradesh government has decided to increase property registration fee from exisiting Rs 5000 to Rs 10,000. The decision to hike property registration fee will earn the department an additional revenue of Rs 75 crore annually.

At present Rs 5,000 is the maximum fee charged for registration for executing sale deed of a property. UP government has decided to increase property registration fee to a maximum of Rs 10,000 from this december 1.

Principal Secretary Tax and Registration Desh Deepak Varma told news agency “Fee being charged at the time of registration of properties will be hiked from existing Rs 5,000 to Rs 10,000 from December 1,”. He said now one per cent fee would be charged for the registration of a property up to Rs 2.5 lakh and two per cent for properties above Rs 2.5 lakh.However, this fee will not be more than Rs 10,000.It will also provide relief to those who own property of value less than Rs 2.5 lakh.

Delhi Government has Finalized the draft of a new legislation on property

Delhi Government has Finalized the draft of a new legislation on property


Delhi
: Delhi Government has finalized the draft of a new legislation on property aimed for checking fraudulent property transaction and will be introduced soon in Delhi Assembly. Delhi Chief Secretary Rakesh Mehta said the draft of the Delhi Urban Property Registration and Titling Act 2009 is ready and will be introduced in Delhi Assembly soon.The new legislation will provide a legal framework for granting property titles to all owners.

Flat One per cent Charge on Property Registrations

Mumbai: Revenue department has approved a proposal to levy a flat one per cent charge on property registrations with immediate effect.The decision on the one per cent property registration fee was taken by then Revenue Minister Patangrao Kadam early this year but was stayed ahead of elections. The stay was lifted by Revenue Minister Narayan Rane.

Hundreds Of Property Owners Hounded By BBMP Despite Having Paid Tax

Bangalore: BBMP has sent nearly 2 lakh notices over the past 10 days. May 30, 2009, was the last date to pay the second half installment without penalty for 2008-09. Technically, the BBMP has powers to issue notices from September. However, the process was delayed till the compilation was complete.

Online Platforms are helping Residence of Apartment communicate better

Chennai: Associations with not-so-tech-savvy members are taking help to design the online platform. Bangalore-based start-up www.CommonFloor.com claims to have its presence in 22 cities. In Chennai, the company has designed the online apartment management tool for around 1,500 communities, where services like maintenance fee tracker, issue tracker, SMS reminders for active residents and owners’ association members come installed. Online communities help address issues effectively, particularly when members have no time to attend association meetings.

 

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