New Year Surprise: SBI Cuts Base Rate by 30 bps to 8.65%

State Bank of India has slashed its Base Rate – an earlier lending benchmark by 30 basis points to 8.65% which means loan borrowers can now lend money from the banks at a cheaper rate. This is a surprising move at the onset of the year and is likely to be carried out by other banks too in the coming days. Yet the bank hasn’t made any changes in its existing benchmark. Thus there will be no change in the marginal cost of the lending rate (MCLR).

From the banking source, it is revealed that over 80 lac borrowers are likely to get benefited from this reduction. On its website, SBI declared, “Base rate reduced from 08.95% p.a. to 8.65% p.a. w.e.f. 01.01.2018.” The bank has also lowered the BPLR (Benchmark Prime Lending Rate) from 13.70 percent to 13.40 percent.

The Base Rate is the minimum lending rate below which banks can’t lend money. The reduction in the Base Rate will definitely benefit the active borrowers, who had borrowed money as home loans from the bank before April 2016 and also people who rose at floating rate. Additionally, the bank has also decided to extend the active waiver on home loan processing fees till March 31 2018, for the new customers who are willing to purchase home and people who want to switch their loan account to SBI.

“This surprise move is likely to usher in more residential property sale throughout the country. A large number of people, willing to buy their dream home in Kolkata and other cities can actually avail easy to repay home loan accessibility. Additionally, the waiver on home loan processing fees will translate in bigger sales and credit growth for the mortgage lending financial institutions, – said Mr. Mahesh Somani, Head- East Zone, National Association of Realtors India (NAR).

However, along with this latest announcement SBI has become the lowest among the other mortgage lenders. Earlier, the bank has reduced its Base Rate by 5 basis points from 9% to 8.95% in September 2016 which had been followed by the other financial institution until this latest announcement. This reduction is an effort of SBI to certify the transmission of reduction in the policy rates in the recent past. However, around 30-40% loans in the industry are still linked to base rates.

According to the latest market predictions, lending rates are an unlikely trend downward unless there is a steady resurgence in credit growth and higher loan volume ad-lib for lower rates.

-LNN (Liyans News Network)- Interested in north Kolkata apartments? Explore luxury residential property in north Kolkata here. Get project details, location map, floor plan, price list and other details explained. Buy/Sell/Rent properties across 100+ cities in India.

Made Easy GST Laws Relative to Residential Construction and Input Credits

Is there one thing that is taking you back from property investment? Are you taken back by additional GST burden on your chosen apartment? Here are some confluent factors that one should know before putting money on residential properties these days.

Sale of an apartment is a supply of service or a sale of immovable property under GST regime– With a set budget, just when you were ready for buying a property, GST implementation dropped adding to your budget. If you think the same, please check some important facts about the central government introduced unified tax reform. According to the clause 5(b) of the Schedule II of CGST Act, 2017, construction of a house/apartment/flat intended for sale is a supply of service.

Anyhow, the clause 5 of Schedule-III of CGST Act, 2017 says that if the entire absorption for the apartment/house is obtained after the receipt of completion/Occupancy certificate (OC) from the competent authority or followed by its first occupation, whichever earlier, then such action would be neither considered as supply of goods nor a supply of service. However, a transaction related to sale of such immovable property after initial occupation or after receiving receipt of OC won’t draw GST.

Taxation on Land property- You need not arrange extra money for land purchase as the sale of “Land” is neither ‘Goods’ nor ‘Service’, thereby is exempted from GST, as provided under Clause 5 of schedule III of the CGST Act, 2017.

GST rate on supply of services related to construction of residential apartments– According to Sl. No. 3(i) of Notification No. 11/2017-CT (Rate) dated 28.06.2017 construction of residential complex is under GST @18% slab [CGST @ 9% and SGST @ 9%] which includes- construction of complex, civil structure or a part thereof, building, apartment wholly, partly intended for sale to a buyer, excluding where the entire consideration has been received following insurance or completion certificate by the capable authority or its first occupation, whichever prior.

The supply of residential properties (flat/house/complex) also entails transfer of ‘land/exclusive share of land’ which is not taxable under GST; in that case, the value of the land will be accounted as 1/3rd of the total amount charged for such supply, says the Para 2 of the said Nfn. No: 11/2017-CT (R) dated: 28.06.2017.

So, GST on a flat/house shall be 2/3rd of the total consideration cost which is 12% of the total consideration including land /undivided share of land.

Input tax credit on goods/inputs (sand, cement, steel items etc.) and input services (Designing, planning, construction etc.)- The builders/developers are eligible to avail credit on goods and input services used in the course of development. The Section 16 along with Section 17(5) of the CGST Act, 2017 narrates that Builders/Developers are entitled to avail ITC of the GST paid on goods, inputs like: Sand, Cement, Steel, Gravel, Electrical cables, switches etc.; and Capital Equipments like: Mixer, Crane etc.; and input-services as: Manpower Supply Service etc.; Architectural services like Drawing, Designing etc.

Sub-contracted construction services (including or excluding materials) can also avail ITC as the provision don’t fall under clauses (c) and (d) of Section 17(5) of CGST Act, 2017. Thus, these people belong to the independent taxpaying category.

Input Tax Credit facility on Tripper, JCBs and Dumpers and other delivering transpiration– Sec. 17(5) (a) (ii) of the CGST Act, 2017 says that ITC is available on Tippers and Dumpers which are categorized as Motor Vehicles (under Clause (28) of Section 2 of the Motor Vehicle Act, 1988 read with Section 2(76) of the CGST Act, 2017).

GST levied on interstate stock transfer of input and capital equipment by the same builder– Supply of construction materials by the same builder from one to another site won’t attract GST, if the registration number of the construction activity is same. This kind of transfer can be made under a delivery challan. Again, with the same registration number if a builder/developer opens another business in any other state and is required to transfer capital equipment or inputs, is not liable to pay GST.

In terms of the Section 25(4) of the CGST Act, 2017, builder/developer with more than one registration number whether in a state or UTs or different states and UTs are liable to pay GST, as different registration numbers will be considered as two different entities for the purposes of GST and according to the clause 2 of Schedule-I to the CGST Act, 2017 this kind of supply invariably falls under taxable supply. GST paid on such supplies can be proceeded as Input tax credit by the recipient. The estimation of such supplies of will be as per provisions of Sections 15 and 18(6) of CGST Act, 2017 read with Rule 28 of CGST Rules, 2017.

In case builder avails ITC services on construction of flats out of which some are sold on payment of GST and rest sold without payment of GST– the provisions of Section 17(2) of the CGST Act, 2017 highlights that where the goods and services or the both used by registered person partly for the production of taxable supplies and partly for effecting tax excused supplies, then the amount credit will be reduced to so much of the input tax as it inferable as taxable supplies. Additionally, the sale of flats after issuance of completion certificate without GST payment as per the clause 5 of schedule-III to CGST Act are exempt supplies for the principle of Section 17(2) ibid as specified vide Section 17(3) mentioned earlier, read with clause (b) of paragraph 5 of Schedule II and clause 5 of schedule III to the CGST Act, 2017.

Under these circumstances the process of credit of entitled ITC has been described under the provisions of Rules 42 (for inputs and input services) and Rule 43 (for capital goods) of the CGST Rules, 2017. Anyhow, refund of un-used input credit is not allowed As per Notification No. 15/2017-CT (Rate) dated 28.06.2017 issued under the provisions of Section 54(3) of the CGST Act, 2017.

_LNN (Liyans News Network)- Explore luxury residential property sale in Kolkata. Invest in on-hand projects exempted from GST. Avail the GST benefit, up to 8% off on selected luxury residential projects.

Supreme Court: Claim Within 12 years, Else Lose Property To Squatter

Squatter can have the ownership rights over your property if the property won’t get pleaded before court within 12 years. A bench of justices R K Agarwal and A M Sapre stated, if a person justifies actual, peaceful and discontinued possession of a property owned by another for more than a decade, “a case of adverse possession can be detained to be made out which, in turn, results in depriving the proper owner of his ownership rights in the property and confers ownership rights of the property in the person who claims it“.

Nevertheless, the bench inquires a caution by ruling that as a matter of course a settler must let in the ownership of the actual title-holder over the property and make the true owner a party to the suit before the court for filing a petition regarding the ownership over the property through down side possession.
This verdict arrives while a Muslim man from Jalgaon, Maharashtra had demanded the ownership over a property through adverse possession. He had endeavored to advance the entreaty of adverse possession, to claim complete takeover of the property, which was handed down to a Muslim lady after his father’s demise.
Superseding a Bombay high court judgment in favor of the man, the apex legislative authority of India said, “When both courts below held and, in our view accurately, that the defendant has failed to prove the plea of adverse possession, then such parallel decision of fact was above reproach and binding on the HC. The HC slips up deeply in observing that it was not obligatory for the defendant to first admit the ownership of the claimant before raising such a plea.“
The man’s thereon appeal was that he was the adopted son of the late original owner and thereupon he turns out to be the current owner of the property. The petition taken by a defendant about adoption explains his ownership over the land as inherit of the true owner was fairly held against him. He was unable to prove him as an adopted son. It’s a settled code of Mohammadan law that it doesn’t identify the adoption. Justice Spare wrote this judgment for the bench. Thus SC gave ownership to the lady who was the actual heir of the property.

LNN (Liyans News Network) – Visit our property portal to search suitable property as per your requirement. For any confusion related to property investment leave your query under the segment of post your property Requirement in Kolkata, we will revert with the solution in no times. Buy/Sell property effortlessly with us.

What Realty Expects From Union budget 2017 ?

Like the entire money-ban forsaken nation the most affected sector real estate is watching over the union budget, 2017. Will Jaitley meet up their expectation to provide national economy a much-anticipated boost to the country’s economy? Starting from the common man to the business tycoons union budget has snatched away market’s goodnight sleep.

The real estate sector is one of the most stirred sectors as the highest volume of cash transactions have been perked up in this sector. Now the entire real estate and its co-related small and big industries, builders, developer all are anticipating that the union budget of 2017 will serve the current market sloth a much called for thrust. According to the market experts real estate sector is confronting tremendous slowdown during this post demonetization move. Speaking about Kolkata the only revenue is coming from the realty sector is from low budget flats in Kolkata. Apart from the money ban declaration the past two/three years have been quite dreary in terms of buying/selling properties among the every big metro city of the country. Thus, the entire realty industry and shareholders are having all their hearts and minds donated to the union budget, 2017.
Reformation of income tax slabs supposed to be on top of the wish-list. At present, there are no tax deductions on income up to INR 2.5 lakh; on the other hand, most people are hopeful about at least a subsidiary increase of INR 50,000 as this would actually help many MIG. This would also get more inflow into the market which would generate positive buyers’ sentiment for property investment. For additional the tax release presently, under Section 80C you are eligible for a tax deduction of INR 1.5 lakh per year. Now the expectation is that this deduction would be hiked to INR 2.5 lakh per annum.

Image and video hosting by TinyPic

The real estate sectors has clamored for mulling over the market condition and augment the return to at least INR 5 lakhs which they consider would mirror the high prices of properties and related raw materials of the very sector. Passed 10 years, property prices across the country have raised to a very high level, so has increased the cost of construction, whereas the income level wasn’t parallel. The real estate sector has put that the principal value and interest paid as a part of the home loan; the return and the payback given on the loans should be allied so that the taxpayer could profit from them and increase savings. Under the provisions of Sector 80C, INR 1.5 lakh can be deducted from a tax payer’s total income if he invests in tax saving investments such as the Public Provident Fund (PPF), the Employee Provident Fund (EPP), 5-year tax saver deposits, NSC and postal saving plans. This is for the conventional investor. For investments that have higher risk involvement likely to gain a superior return with ELSS. ELSS investments are also part of Section 80C deduction. 80C also comprises the primary amount of the home loan. So maximum number of taxpayers just utilizes this principal amount to implement the deduction; a split deduction applied to the principal can boost the taxpayers for long-term savings.

Implementation of GST Act, bringing real estate under the attention of the GST Act might too benefit realty. Industry bodies have suggested that all charges, duties, taxes, cess such as land conversion charges, development charges, stamp duty, transfer duty, VAT, service tax etc are going to be fused. Complete implementation of RERA will make the sector more transparent through all its transactions. The government should finish appointments of the officials at the state level so that the implementation can happen right on. The single window clearance for projects has been a requirement from the industry on a constant basis now. The real estate sector looks forward to that the Union Budget 2017 will fulfill its expectations for market recovery and smooth business operatives.

_ By LNN (Liyans News Network)

Keep PAN, Aadhaar Helpful For Bullion And Jewellery Buys Above Rs 50K Post Budget 2017 !

Whenever you visit your neighborhood gold or silver gems store you may need to cite your PAN or Aadhaar card number for buys above Rs 50,000-1 lakh.Right now, just buys above Rs 2 lakh require know-your-client consistence in the gold market.Sanctioned bookkeeper Bhargav Vaidya, who gives consultancy administrations to the pearls and adornments area, and the secretary of one of the nation’s biggest bullion affiliation, expects the KYC prerequisites for bullion and gems to be modified lower from the present Rs 2 lakh in Budget FY18, to be exhibited on Wednesday.

“I think the KYC (consistence) will be sliced to Rs 50,000 from Rs 2 lakh at present in the Budget for FY18,” said Vaidya, proprietor of BN Vaidya and Associates. Aside from the exchange, budgetary controllers take input while drafting strategy for gold exchange from Vaidya.

Any such move would come in the midst of the administration’s crackdown against dark cash hoarders. Post demonetisation, substances holding unaccounted riches as rejected Rs 500 and Rs 1,000 notes changed over these to a great extent into gems, bullion and land.

Image and video hosting by TinyPic

On the off chance that Vaidya’s hunch demonstrates right, clients purchasing gold, silver or bars of either metal would need to cite their PAN or Aadhaar number, or even give Kisan Credit Card in rustic ranges, for buys over Rs 50,000

Passing by Monday’s intraday gold rate of Rs 28,674 for each 10 gm that sum purchases only 17 gm of gold. Goldsmiths, leaning toward obscurity, feel the administration’s measure could be incited by specific constituents in the exchange giving it an awful name by offering gold and in lesser cases silver in return for old Rs 500 and Rs 1000 notes post demonetisation.

Administrative organizations like wage duty, Enforcement Directorate and the branch of income insight have been caught up with studying bullion merchants and diamond setters the nation over to make sense of how gigantic deals occurred on and instantly after the demonetisation declaration.

“My figure is KYC necessity would be reexamined for buys above .1 lakh in the up and coming Budget,” said Surendra Mehta, national secretary of India Bullion and Jewelers Association (IBJA).

By LNN (Liyans News Network)