Tag Archives: real estate news

Discount on registration from fourth to the seventh floor

The Stamp and Registration Department has decided to give discounts during registration of flats from the fourth to the seventh floor.In order to boost the reality sector in Greater Noida and Noida, it has been decided to relieve the purchasers of flats/apartment by giving discounts during registration.

Any purchase of flat on the fourth floor will get 5% discount on the actual price. Similarly purchase on the fifth floor will earn 10% discount, sixth floor will get 15% and seventh floor will get 20% discount.All floors after the seventh will be given upto 20% discount. The purchasers will also get 20% discount on the purchase of stamp paper. “This discount can be availed only if the purchasers buy a flat or apartment as per the circle rate” said S.N Rai, Assistant General Manager, Stamp and Registration Department.The discount on buying at less than the circle rate will be decided on the basis of the circle rate itself.

The discount on buying at less than the circle rate will be decided on the basis of the circle rate itself. In such a scenario the registry will also be done on the circle rate itself. Then the stamp duty will be paid on the basis of the agreed sum between the buyer and the builder.Inspite of the fact that builders charge more money from the clients for choosing their own flat, this decision by the Stamp and Registration Department has been welcomed with open arms.

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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.

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).

Real estate developers are back building high-end housing

On the back of a revival in demand, real estate developers are again building super luxury apartments, say experts. About 7,000 such apartments to be delivered within a year in Mumbai alone by consultancy firms Jones Lang Lasalle Meghraj (JLLM) and Knight Frank India.The cost is not below Rs 4.7 crore for a single unit. Anand Narayanan, Knight Frank India’s national director (residential agency) said in the central business district of Bangalore,400 high-end luxury apartments are going to hit the market in the current year itself.

LLM country head and chairman Anuj Puri said “After the recession got over, real estate developers are back building high-end super luxury projects because there is good demand for such projects.” Similar high-end projects are coming up in the National Capital Region as well, but demand for such projects depend on many things, including the location of the property and its novelty.The higher cost of such products is justified because not a single one has a common design and lay-outs are also never identical, the consultants said.

Stating that there is ‘enough demand’ for such projects, both consultancy firms said that consumers are treating such projects as a consumer product for which they are ready to pay a premium.

Lucknow property tax defaulters in for trouble

Lucknow Municipal Corporation (LMC) has decided to attach the properties of erring house owners and forfeit them to recover the tax. The Corporation have been sending reminders to defaulting property owners for the past many years.LMC would soon begin the exercise of attaching the properties, and forfeiting them to recover the pending dues. The LMC would also seize the bank accounts of the defaulting property owners, in an exercise which is set to begin within a period of a week.

There are over a dozen government buildings, residential and commercial property owners who owe massive dues towards the municipal body. The combined dues of all government buildings in the state capital are estimated to be around Rs 20 crore. Urban development sources said that a recent survey has found that Lucknow has some 6 lakh odd houses, even though only some 4 lakh houses are covered. Comprehensively, the dues of Rs 30 crore could be significant given the fact that the total house tax earning of LMC happens to be in the range of around Rs 80 crore.

A senior official in the department said that the tax is either under-assessed or is not assessed at all. The municipal body has now started issuing revised tax to the house owners.In fact, the municipal corporation has drawn a list of some 150 such owners — both residential and commercial — whose outstanding house tax dues have sky-rocketed to a whopping Rs 10 crore.

Reference:

Times of India

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.