Real estate industry keeps fingers crossed for GST Bill to be passed this week
Aug 18, 2015
Source : Toi

NEW DELHI: The real estate industry is keeping its fingers crossed and hoping that the Goods and Services Tax (GST) Bill would be passed in the current Monsoon Session of Parliament so that rationalisation of taxes on purchase of materials does not get pushed to 2017.

Describing the possibility of postponement of the GST Bill to 2017 as "unfortunate", Vineet Relia, managing director, SARE Homes says "I believe all hope isn't lost for the GST Bill to meet the 1 April 2016 deadline". He is hopeful that since the Parliament has not been prorogued but only adjourned sine die, the government will call a special session at short notice and clear the long pending GST Bill.

The GST Bill is one of the many key legislations that were to be taken up and cleared in the Monsoon Session but could not be passed because of the prolonged logjam in Parliament.

The realty players currently pay tax on tax on purchase of raw materials. "The benefit of rationalisation or the lowering of these taxes would have been passed onto the buyers by the builders. This would get pushed by another year if the GST Bill is not cleared now" said Kolte Patil Developers chief executive officer Sujay Kalele. He too expressed hope that the Bill would be cleared in the coming week.

However, Ravi Ahuja, executive director at property consultant Cushman & Wakefield believes there will be no major direct impact on the industry if the GST Bill gets pushed by a year.

"The Bill will definitely make it easy for the real estate companies to do business as there will be one uniform tax across all states but there will be no major direct impact if the Bill is not passed in this session of Parliament," he says.

The real estate industry currently has two main types of taxes-Service Tax and VAT. There is high degree of overlap of tax base and ambiguity on the rate of tax because of the multiple options available for the companies for discharge of taxes across States. The GST Bill will smoothen out these processes for the companies.

Latest Realty News

Aug 18, 2015
MUMBAI: Securities Appellate Tribunal (SAT) on Monday upheld an order by market regulator Sebi against Jaipur-based real estate major PACL Ltd and directed it to refund Rs 49,100 crore that the company had collected through what the tribunal termed as 'sham collective investment scheme (CIS)'. This was the largest CIS in the country so far — in terms of money collected as well as the number of investors involved — against which Sebi had passed an order.
Aug 18, 2015
KOLKATA: Civic officials and politicians are now asking real estate developers in Kolkata and its vicinity to pay for every activity related to construction. This amount is so significant that developers factor in the additional cost at the planning stage of a project while calculating overheads.
Aug 17, 2015
Dubai: An Indian asset management firm has launched a $250-million realty fund for Gulf investors to develop mid-income residential properties in India.
Aug 17, 2015
Months after the proposed plan to demolish Balabrooie Guest House to build a club for legislators was scrapped following a public outcry, deputy speaker NH Shivashankara Reddy told media that Carlton House, another heritage building, would be converted into the proposed club. Carlton House is situated on Palace Road, off Vidhana Soudha.
Aug 14, 2015
BENGALURU/MUMBAI/NEW DELHI: Real estate developers are increasingly turning to private equity investors and non-banking finance companies to refinance massive debts due to sluggish home sales in the last couple of years and banks becoming cautious about lending to the industry
Aug 12, 2015
BENGALURU: Can money raised by the Bangalore Development Authority from aspiring site owners be parked in high-risk investment instruments like mutual funds, though the plots remain elusive for years? Can the agency tasked with ensuring sustainable and orderly growth of Bengaluru resort to unauthorized monetary transfers to assorted government agencies like the Coffee Board, Bangalore Metro Rail Corporation and Karnataka Backward Classes Department Building Construction Society which builds stud
Aug 12, 2015
As real estate prices skyrocket and renting out a house in the city gets increasingly difficult, many tenants are opting for illegal structures that are comparatively cheaper. Monday's incident at Teynampet, where a three-storey residential building on Bhaktavachalam Street tilted, once again exposed the risk of illegal buildings in the city. Taking no chances, Corporation of Chennai has decided to demolish the structure.
Aug 11, 2015
Panaji: The Real Estate (Regulation and Development) Bill, 2013, which is still pending in Parliament, has the Goan real estate industry worried. While stakeholders agree that the bill, once passed, will bring clarity and confidence into the real estate market, developers are wary about the lack of onus placed on the government, which they feel, is an important stakeholder in the real estate economy.
Aug 10, 2015
GURGAON: The Haryana government's ambitious plan to conserve the Aravalis by drawing up a master plan for the region, which was initiated by the state's forest minister Captain Abhimanyu, may have been put in cold storage
Aug 08, 2015
The report of the Parliamentary Select committee on the Real Estate (Regulation and Development) Bill, 2013, tabled on the floor of the Rajya Sabha has not only rectified the many dilutions that were made to the original Bill, it has also built in additional safeguards to regulate all kinds of transactions between home-buyers and builder

Latest Realty News Of State

Realty Talk's