April, 2017 | Kolkata Real Estate | Kolkata Property

RERA rolls-out Developers Speeding Up Project Completion

It seems a greater part of the country’s developers have appeared in the marathon of on hand project completion after RERA takes effect. RERA penalization clauses stirred the deliverance sector of real estate. Yet, in comparison to south a large number of property in north Kolkata is at under-construction stage. As builders are keen on taking advantage of GST roll out, as investment in under-construction properties will cost 15% excess charge to the homebuyers as per the new GST regulation.
But it seems RERA impact appears more powerful.
The current project statistics show that builders are investing in fast completion of their ongoing projects to comply with the ‘timely completion’ clause of RERA, which will be manifested from May 01, 2017 in every state and union territory all across the country. The Real Estate (Regulation and Development) Act was enacted in March 2016.

According to the industry specialist RERA is not only the reason for this rush of project wrap-up. It’s observed that developing a new project abiding by all RERA regulations is much difficult than to finish the ongoing projects, specifically the ones in an advanced stage of completion. If they cap their on hand projects before RERA regime rolls out effectively, then it’ll be easier to get an occupancy certificate and they don’t require to adhere to RERA formalities as well.
Builders are advised to deliver all their projects timely with every promised amenity and all other needed touch-up final works. Once RERA comes into action countrywide buyers rights will be fully protected from the horseplay of shady developers which includes delay in deliverance, embezzlement of funds collected from buyers of one project to grubstake another one.

All the shaky roots will be removed in this course, as scrupulous builders will find it impossible keep up their business, under this strict infrastructure. This will for sure clear up investment related confusion from the buyers’ minds and provide a solid platform for ethical business of realty. However, work on under construction projects appears to be in full swing these days. This will acquire more accountability and transparency in the real estate sector.

– LNN(Liyans News Network)

GST Roll-Out To Respite Homebuyers?

Not completed apartments will come under GST wheel neither rental residential apartments will have to pay on this account. But rental commercial apartments will have to count up the service tax of 15% (currently) and this very charge is going to be replaced by GST implementation.
July 1st onwards, homebuyers will have to pay for Goods and Service Tax (GST) on EMIs paid for under construction residential units and on every affixed charge such as external and internal development charges, incidental location charges and club membership fees will be collected by the developers only. Experts suggest that this will boost the residential property sale in Kolkata as luxury inventories will be depleted faster than ever.

Residential units put on rent are free from this decree. Rather commercial units on rent will have to pay an additional service tax of 15%, which will be calculated as GST charge henceforth. Parliament passed four regulations on GST execution, as they want without any further delay, GST to be fully executed from July 1st.

This is still in the mist what would the exact percentage that would be levied on under construction residential units whether a lower rate of 12% or a higher rate of 18%. Unless this percentage doesn’t come in shape the cost of buildings (whether it will climb up marginally or diminish) won’t be properly figured out. The government is yet to put lights on whether the developers and homebuyers will stay in benefit of counting lower tax rate under the revised new scheme. According to the existing service tax regulation, for investors of under-construction residential units, a discount of 75% is permissible, if the entire usable possession area is within 2000 sq ft and sold less than 1 crore, holding the effective tax rate from 15% to 4%. Correspondingly, for the above 1 crore properties with of more than 2000 sq ft area the tax reduction will be 70% and the effective tax rate to be comported by the buyers is 5%. Before anything else let’s highlight that states also charge VAT besides the service tax. If the abatement rules are not taken in under the GST regulation, the relevant tax level will be above the cost of the residential apartment.

At present EMIs for ready-to-move-in apartments don’t exert a pull on indirect tax, but installments paid to the builder for an under-construction property court service tax of 15% on which discount is given. Now the argument here is that the builder is providing a service to a homebuyer by developing an apartment. The deduction rate is allowed to watch the value of the land involved in the construction of the apartment.
The decision of affordable housing segment will come up before July expected. The Ministry of Housing and Urban Poverty Alleviation (MHUPA) proposed to the central finance ministry affordable housing sector will be dispensed from service tax under the new GST regime. MHUPA also put forward that the states and union territories to regard as repeal or rationalization of stamp duty on affordable housing projects.

As of now the sale of buildings and lands won’t be monitored under GST regulation, whereas they will continue to attract stamp duties levied by the states. Electricity cost has also been enjoined from GST.

– By LNN (Liyans News Network)

CREDAI Members Dispatch 375 Affordable Housing Projects

MUMBAI: Members of manufacturers’ body the Confederation of Real Estate Developers’ Association of India, or CREDAI, have reported propelling aggregate 375 reasonable lodging ventures the nation over with speculation duty of Rs 70,000 crore.

These activities will include improvement of more than 86 million sq ft to construct an aggregate of 2.37 lakh lodging units. CREDAI is in discourse with State Bank of India (SBI), its national saving money accomplice to make extraordinary monetary bundle both for home credits and for development fund, the real estate agents’ body said in a discharge.

These tasks will be propelled under the domain of the different CREDAI state or city parts concurring the rules set around CREDAI National.

“I might want to praise CREDAI on the activity being taken to adjust the land business with the target of Housing for All of the Government of India,” M. Venkaiah Naidu, Minister of Housing and Urban Poverty Alleviation said at an occasion sorted out by CREDAI in Ahmadabad.

(These projects will involve development of over 86 million sq ft to build a total of 2.37 lakh housing unit )

CREDAI with his skilling accomplice PNB Housing Finance Ltd (PNBHFL) has likewise gone into a settlement for skilling of 8,000 development specialists amid 2017-18.

“India has a recorded lack of 20 million homes and our attempt is to guarantee that we defeat this deficiency by setting shoppers at the focal point of every one of our endeavors. Our 375 lodging plans will understand the fantasies of a huge number of Indians who are holding up to claim a house,” said Jaxay Shah, President – CREDAI.

CREDAI is preparing its part engineers to join the ‘Lodging for All’ mission and attempt moderate lodging undertakings to accomplish the administration’s vision.

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Bihar Govt. Gives A Go-Ahead To Draft RERA Rules !

Bihar chief minister Nitish Kumar finally has given a green light to the draft Bihar Real Estate rules (Regulation and Development) 2017 and rendered the urban development and housing department to present it before the state cabinet for approval so that it can be notified before April 30.Every under construction project that haven’t been issued/received any completion certificate will fall under this notified RERA rules. Realty projects which consist of more than 8 flats will also enlisted under these new regulations.

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The rules specify that the prices of the apartments will not be decided upon the super build-up area, rather will be based on the carpet area of the property. Balcony, internal walls, kitchen and toilets all these usable spaces are considered as the carpet area. The chief minister gave affirmation to the draft at a review meeting of the urban development and housing department at the CM secretariat on this Wednesday April 5, 2017. Nitish also asked the housing department to form an urban engineering organization, on the lines of further public works organizations.

According to the urban development and housing minister Maheshwar Hazari this new cell would have 577 engineers. “The cell will add to the efficiency of urban local bodies to execute civic works. The engineers will be recruited at the headquarters level and work for the urban local bodies across the state,” Hazari said.
The chief minister furthermore asked the Patna municipal commissioner to produce property tax assessment property tax assessment on the basis of consumption of the properties. The Centre-notified Real Estate Regulation Act (RERA) of March 2016 will be followed by the state real estate rules. All states were supposed to frame rules for execution of the RERA within 6 months. Afterwards, all states were directed to firm up the rules by April 30.

RERA determines mandatory registration of every under construction and imminent real estate project, penalty to builders against holdup and vindictive extents, including jail terms for crooked builders. The developers are also advised to come up with their project details on the website of the authority along with quarterly updates of the projects. In case there is any postponement from the builder’s site, then builder will have to pay the monthly interest of home loan of the flats buyer. The builders are asked to open a separate account ‘escrow account’ to deposit 70% of the money pulled together for the project. For construction purpose they are permitted for any withdrawal. There will be an appellate tribunal to hear the real estate complaints.

_ LNN(Liyans News Network)- To buy property in Kolkata visit our leading property portal, where you can list your property for free to attract more and more buyers. Contact us for property related consultation.

It’s Time To Unit Area Implementation For KMC

Kolkata Municipal Corporation is finally all set to launch UAA (Unite Area Assessment) for resolving property tax issue. This service will be applicable for city’s every residential/commercial property owner. Earlier a proposal was passed in the KMC house to the top civic authority for implementing UAA from April 1, 2017. Other major cities of the country have already rolling out UAA process such as- Delhi, Mumbai, Chandigarh and Patna. People who want to buy property in Kolkata, will follow this regime henceforth.

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Now on under KMC website a property owner can assess his/her property tax online and decide the exact amount to be payable on https://www.kmcgov.in. (Official website of KMC). Property owners can also visit the assessment-collection department of the KMC ward offices or e-governance centers of corporation located across the city. The Mayor of Kolkata Mr. Shovan Chattopadhyay has already announced that through UAA the KMC assessment department will send tax bills to the assesses under the current property valuation. “Property owners will be allowed to pay their outstanding bills under the current method of valuation (rental base). In the meantime, the property tax payer concerned can enroll for the UAA system. We will adjust the bills after the switch over is complete,” Chatterjee said. Also he warned, any deviation from the declared statement will attract penalty.”

He also assured that the new UAA system wouldn’t prove to be a burden on property owners as it would never exceed by 20%. Asking on the same a KMC official has said, “UAA has proved to be a scientific system of determining property tax in some Indian cities. We are set to experiment with this new system. At the same time we have decided to put a 20% cap on either increase or decrease in the tax rate from the present annual rent based valuation system.”
Under the new system the entire city will be divided into 6 regions based on the location and civic amenities being relished by property owners. According to the civic body annual property tax under UAA is calculated on the basis of this formula-

Annual Tax Payable Rs.= Category wise unit area value(Rs/ Sq Ft)×Multiple factors×Covered space of building area/area of land (sq ft)× Tax rate (percentage).
It’s foreseen that the UAA system would be unrestricted, transparent, impartial, easy to administrator and empower the citizen by providing the opportunity of self-assessment.

_ By LNN(Liyans News Network)