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).
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.
Special NMC drive
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Tagged apartment, defaulter, defaulters, nagpur, property, property owners, property tax, property tax 2008-09, real estate, Real estate in India