Valuation Rules Under GST Could Generate Transfer Pricing Friction

The entire domestic business world is now amidst the GST whirl. While this unified tax regime appears as a boon to some of the industries, a portion of them are oppressed by the top-heavy tax burden of this biggest tax reform. ‘Transfer pricing’ (TP) could be another existing cause which would be turning troublesome for the companies in the coming days as per the tax experts.
Transfer price is a price charged by a subsidiary or a division or a company to another. According to the rules that there has to be an ‘arm’s length’ while fixing this price so that it’s neither too low nor too high than the active open market price. So, in case companies are under speculation of tax evasion tax officers have legal right to go over and question them.

Unlike the previous tax regime, Goods and Service Tax offers something called as open market pricing for correlated party transactions. Many of the tax experts feel that at present, the valuation ruled of GST and those for calculating transfer pricing are not integrated and this could advance upcoming tax demands.
For open market pricing for the related party transactions, goods and service, whether global or domestic would now be calculated under specific valuation rules. There is still disorientation regarding the open market pricing, whether the open market pricing will be done on the basis of active TP mechanism or there will be revised, oncoming valuation rules, say tax experts.

There is so definite description of this open market pricing. It needs to be condensed at first place. Much as the current GST rules provide that where recipient unit is entitled for full credit, the value established in the in the invoice will be accounted to be open market value. Now the confusion is how to take in time-based delicacies of the transaction specific indirect taxes with the annualized pricing income tax decisions?

Transfer pricing disputes deal with the annual profit calculation of the MNCs and how they have been reconstructed their parent companies. Meanwhile many firms are dead against of this revised transfer pricing rule and have challenged this calculation in the courts as well.
Tax experts indicate that indirect taxes are greatly time-based. Thus, the time of supply is really crucial for the entire calculation and the input figures have similar importance too. On the other hand direct taxes are based on principle of aggregation. The calculation of which is mainly figured out on the due date of the annual tax return. Many of the experts suggest that this is basically heading towards the same focal point through two different set of rules. The bold points of GST is apparent, the fine clauses are yet to be revealed.

During the last three years tax department has been working on resolving this transfer pricing matter. To avoid future transfer pricing glitch the tax department has been signing Advance Pricing Agreements (APA) with several MNCs. An APA is basically a contract between the taxpayer (mostly MNCs) and the tax authority CBDT in India, where the transfer pricing process is established.  The methodology of tax calculation could be then used for an agreed time period on the taxpayer’s upcoming global transactions. However, the transfer pricing is limited in MNCs dealings as of now, in future domestic transactions might attract indirect taxes as well.

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After CREDAI Amrapali Homebuyers Now Move to NBCC, HUDCO

Amrapali projects seem to be the biggest troublemaker in property purchase history. Around 6000 homebuyers of Amrapali properties have asked the Uttar Pradhesh Government not to involve builders’ body CREDAI in the completion of the under construction projects and demanded assurances for the guideline to complete the rest of the productions.

An eight-member committal from various Amrapali projects met UP urban housing minister Suresh Khanna and proposed the government to bring state-run firms such as National Buildings Construction Corporation (NBCC) and Housing and Urban Development Corporation (HUDCO) to take over all the projects of Amrapali.

Mr. Rahul Kashyap from Amrapali Dream Valley project, an attendant member of the following meeting claimed, "It (CREDAI) itself is a builder lobby and has not even taken a single action in favour of homebuyers so far."

A three member panel constituted by the UP government to rack up this builder-buyer spat that had declared co-developers’ participation in the completion of the major unfinished projects.  Again the Builders body Confederation of Real Estate Developers' Associations of India (CREDAI) also suggested to het members or non-members to show up as investors or co-developers.

Yogi Adityanath, chief minister of Uttar Pradesh on Tuesday had also asked developers to ensure 50,000 apartments get delivered in the coming three months, ordering Noida, Greater Noida and Yamuna Expressway authorities to make possible the hand over procedure.

Homebuyers of several Amrapali projects has also seek clarification on what will happen to those projects where the construction has just competed to 20-30%  and for those where the construction process has even not started at all.

Hitesh Nakhasi, another Amrapali home buyer said, “We also clarification on the fast process of registries of those flat owners who had received the possession letters but are unable to complete the registration due to heavy dues Amrapali is supposed to pay to the authorities."

A total 13 FIR has been launched against six builders including Amrapali and Supertech. Yet, homebuyers had claimed that no actions had been taken so far against the incriminated people. They also demanded clarification on how would the government co-ordinate with the banks and HFCs for stop calculating EMIs and interests till the time possession will be allotted.

Reportedly Amrapali homebuyers had been on strike since Aug 12. If the outcome of this meeting with government wouldn’t satisfy their need, the buyers are on their toes to take their strike to the higher authority in order to secure their interest. They claimed that they had spent 8 long years with verbal assurance and now they seek everything penned.

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Leading cement manufacturers are eyeing Binani Cement assets post blooper indication by NCLT

Short while ago, the National Company Law Tribunal, Kolkata made a revelation that an insolvency plea against the Binani Cement filed by the Bank of Baroda. Soon after this news broke, top domestic cement players are busy in finding the shortest route to reach out the in-demand assets of the Brij Binani Group Company, in order to shore up their pan-Indian market presence and bump into a prospective value buy, multiple sources related to uncompleted negotiations on the conditions of the anonymity.
On July 25th, the National Company Law Appellate Tribunal, Kolkata ordered “on the basis of documents filed by the financial creditor (Bank of Baroda) that (the) corporate debtor (Binani Cement) has committed default in making payment of Rs97.7 crore and therefore... the application for initiating corporate insolvency resolution process deserves to be admitted.”

Binani cement is one of the most popular domestic brands in the cement industry. Apart from Binani there are other big-shot cement companies currently ruling the market; they are- Ultratech Cement, Shree Cement, Nirma, Dalmia Bharat and JSW cement. All these companies have got through the lenders and intended preliminary interest in Binani Cements. There is a lot of interest in the company and all these are at premature phases. The complete deal structure will be disclosed once the potential suitors will preserve their strategy-based on the final settlement plan sanctioned by the interim resolution professional and the lenders.

Binani holds a good export potential for the company’s latency in the middle-east along with the sizable mine reserves at the location of their plant. As an outcome, the cost of the production appears to be lesser. Thus, the assets of Binani Cements are attractive to the other major market player. Worthwhile mentioning that the plant location in Rajasthan holds a good access to the market of Gujrat. This is supposed to be another valid reason behind the high interest in the assets. As per the company website, Binani has a global manufacturing capacity of 11.25 million tons per annum (mtpa), with a domestic capacity of 6.25 mtpa with an integrated part of India and China and it has its grinding units in Dubai.

Tracking the cement productivity of the country, in the last one and a half years, most of the cement deals have been clogged in the range of $100-$135 per tonne in terms of enterprise value and have caught the sales capacity ranging between 5 mtpa- 20mtpa. The capacity of usage in north and western regions lies between 70-80% is a healthful number, because pan-India the capacity utilization is lower than 70%. Experts say the reason behind the failure of Binani is affliction in management impotence in setting up a restructuring plan.

-LNN (Liyans News Network)- Avail post GST sale on buying luxury flats in Rajarhat area. Get flat 7.5% off on hi-end projects in Rajarhat and New Town area. If interested, visit www.liyans.com to explore multiple luring projects against your requirement. 

Renovation? Why not start from your kitchen?

Re modelling or renovation of property reflects the aesthetic sense of the owner. Renovation is nothing but transforming the exhibit of your property. It also means the reinvention of the used space by functionality. As kitchen is the heart of the home, not for the sake of a quality look, kitchen renovation incorporates increasing the space of activity and the space of movement as well. Kitchen is the only space that needs to be redesigned not only for the sake of visuals, but with essential safety measurement. Here we try to spawn the kitchen renovation easier by stating easy methods that you should take up while renovating your kitchen. 

Ensure what exactly what’s the purpose of your renovation?

The objection of the renovation should be clear to you, whether the aesthetic parameter or the practical matters to you the most. Make sure the intent of your renovation gets clearly decoded by the designer. It is the most basic and important part of the idea of the renovation. Communicate with the designer to set the goal clear before he puts his hand in the renovation. 

Set up more space around the appliances 

The design of your kitchen largely depends on the choice of your appliances, which means all your cooktop, fridge, microwave, dishwasher and dimensions hold vital role in the final layout design. But, when the layout is under prep, zoom into the fact that all these appliances can occupy right amount of space and avoid leaving unnecessary gaps around the appliances. While designing the lay out these three aspects should be equally speculated-

1. The measure of your movable space should be apt.

2. Placement of the sink should be by a corner.

3. Make sure there’s space for other people to get accommodated. 

Durability vs. Decor

All the space of storage should be proportionate and made of quality products. Because kitchen is the only space that can go wrong roughly. The decor should not overpower the necessity as well as the budget. So the renovation should be organized and planned within your budget. The sample or materials which are used for the renovation should come from a good manufacturing company. The design element and choice of colour of the products must have to be well in sync to bring out the desired effect of your remodelling purpose.

Decide what to and what not to compromise 

If you think usage of costly materials will tone down the future maintenance charges will be lesser, then you are certainly mistaken. Choices of materials determine the amount of energy and money you want spend on those in the coming days. Check out the full list of the materials and its pros and cons before your designer get his hands into designing. We recommend you to work with a professional team for remodelling your kitchen. 

-LNN (Liyans News Network) - To buy property in Kolkata there’s only one real estate advisory company which you can rely blindfolded. Visit us for buying/selling/renting your real estate items across the country. 

Few Important Guidelines About REITs and InvITs

SEBI- the Securities and Exchange Board of India has introduced an online listing process to speed up the registration process of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). Here we discuss about the benefits that could be on your way through investing in these securities. Investing in these securities will raise resources to meet a funds crisis at present. Experts also suggest that these bonds could generate as $20 billion. The entire process of registration is a quick and cost-effective process. It seems like this announcement has bought some good news for the industry stakeholders. After registration, both the REITs and InvITs are extensively profits the real estate and the infrastructure sections.

REITs- It’s a kind of mutual fund that will boost the investment volume of the real estate sector by raising funds from the individual investors and directly investing bulk real estate. In return the unit holders will receive a share in profit proportionate to the amount contributed.

How it will benefit developers
REITs will bring financial stability in all real estate transactions. Especially developers who have been combating with the increasing debt volume, it’s a safe choice of investment with less market risk. In case there’s any shortage of fund during any project development, this investment will pull in the inflow and expedite the development process as well. Again, funded that have locked up in various on hand projects could be released to ease up other development processes.

For the investors 
It’s just like investing in share market with lesser risk involvement. Investors will get rental returns along with their monthly investment. Without direct property purchase, an investor can still earn from the invested units and count the returns. It will reduce the financial reliance on the banks as well. Investors can invest whenever they want and when feasible they can withdraw it as well.
In anyone invest in REITs any amount of small money will do. If you want to buy property in Kolkata which seems out of your reach, mark our words investing in REITs will be much cost-effective to you. It’s a good substitute to real estate investment as well as income-generating provision.

InvITs- InvIT provides the scheme to invest in the infrastructure sector. Here fund is collected from general public sector and directly channelize in many infrastructure projects across the country either thorough a Special Purpose Vehicle (SPV), in case Public Private Partnership (PPP) development, an investment can only via SPV.

InvITs provide long-term refinance to infrastructure developments. Free up developers existing capital for investing into a new one. Investing in InvITs will boost the infrastructure sector. Thus, it aims to attract foreign investments, so that developers hold to wide spread portfolio of infrastructure assets.

LNN- (Liyans News Network)





-LNN (Liyans News Network)

Buyers Raised Their Voice Against UP RERA

The state government of UP has decided not to change state RERA rules. This has enraged homebuyers. The allegation against UP RERA is that state is sidelining most of the ongoing projects from RERA purview and sanctioning occupancy certificate for the under construction projects. Buyers of Noida and Greater Noida have demanded to the respective RERA authority to reject all such applications came from the developers of unfinished projects.

Abhishek Kumar, president of Noida Extension Flat Owners Welfare Association (Nefowa), said, "While we will finally know which projects are falling out of Rera's ambit when the tally of all registrations are complete, for now we are pleading for the good sense of Noida Authority and GNIDA."
Homebuyers in Noida and Greater Noida, who are at present stuck in four lakh of such under-construction projects in various parts of the twin cities, had been recommending a revival of the UP-RERA to the original version of Central Rera Act, passed by Parliament in March 2016. The central Rera has been authorized by a set of definitions through the notification of October 27 in the state, where ‘ongoing projects’ exclude any project which has applied for occupancy certificate.

For the time being, for apposite integration of all builders on the Rera platform, Credai's NCR chapter on Tuesday applied for registration timeline to be extended to August 10. Yet, there is no official confirmation about it, builders are anticipating for an extension. "Though a 90-day window was offered, the online platform came very late. Also, even if the builders were well prepared for the registration, while feeding the data, lots of problems started cropping up. There have been technical problems while uploading data as well," said Pankaj Bajaj, president of Credai-NCR.
State government is in no mood for correcting the set policy which makes the circumstances stiffer for the buyers. Buyers are in doubts on the effectiveness of the central real estate law.

-LNN (Liyans News Network) - Buy luxury flats/apartments/bungalows in Kolkata availing residential property sale in Kolkata under our online property portal. Currently ongoing ‘post GST 7.5% discount on luxury residential purchase in Kolkata with us. Rush! Limited period offer!

‘Housing Challenge’ Another Effort to Push Affordable Housing Sector

After land provision, additional FAR, tax exemption, financial aid to the buyers and advanced infrastructure status now centre is not living no stones unturned to promote the affordable housing sector under PMAY. The objectives behind affordable housing development are to wipe out illegal occupancy and providing homes for economically weaker section of the society. Right now along with the speedy development process infrastructural growth is also needed in parallel.

Places that have been allotted for the affordable housing development are either remote suburbs or the peripheral areas of the urban towns. Here a point should be kept in view that raising development at remotes areas might be easy for the land disbursement but at the same time it’ll increase the day-to-day basis transport cost for the residents. Affordable housing belt in States like- Bihar, UP, Tamil Nadu and Andhra Pradesh are developed around their working places. This way the cost of the transport can be under control form the residents’ viewpoint.

Reportedly, alike many other major cities affordable flats in Kolkata is also in pipeline and hardly there’s any advancement observed in last few years. Reinforcing the success of Smart City Challenges, now the government is planning to come up with a ‘housing challenge’ to again promote the affordable housing sector under PMAY flagship. The idea behind this ‘housing challenge’ concept is to deploy most economical technology for affordable housing development purpose. Central government has already chosen 25 of such cities across the country, where the government want to introduce this pilot project. The National Buildings Construction Corporation (NBCC) is assigned to prepare the required models for this challenge.

The officials said that challenge will require participants to propose their respective method of technologies that would satisfy the core objective of this challenge effectively. The proposal will have to look at the number of total residential units planned inside a housing compound and financial models suitable for the same as declared by NBCC. Picking up the industrial belts for affordable housing development purpose is one of the methodical moves by the government to increase the demand of affordable housing as well as increasing the job opportunities of the LIG and EWS classes which includes 300 towns and cities of the country. It’s significant to be highlighted that the difference between LIG and EWS apartments is EWS apartments are for people, whose monthly income is lesser than 5000 and LIG apartments are for those, whose monthly income is between 5000-7500.

Renowned developers that have already enter into affordable housing development are-Essel Group, DBS Communities, Tata Housing, Mahindra Lifespaces and Vastushodh Projects etc. Experts, think that this new-age construction techniques will provide quality and standard architecture for homeless and economically weaker section of the society. It’s expected that with all these initiatives government will turn into affordable housing a sector a popular sector for investment. Affordable housing sector happens to be the only sector where a minimal amount of investment can get you a healthy return than your anticipation.  NBCC has proposed several (Public Private Partnership) PPP models by far.

-LNN (Liyans News Network)

India To Contribute About 35% Of Total Office Space Absorption In APAC in 2017

A Cushman and Wakefield report revealed that by the end of 2017, India to measure out nearly 35% of the total absorption in office places among the Asia Pacific countries which is expected to be continued over the upcoming couple of years.
On which Ansul Jain, Managing Director, India, Cushman and Wakefield said, -“Backed by various policy reforms and government initiatives, the country today offers investors a more transparent and accountable business and investor-friendly environment.”
Jain also added,-“The ongoing technological changes and growth of the technology profession will continue to create demand for space, particularly in markets like Bengaluru, Manila, Hyderabad and Shenzhen.”

Sources revealed that where the major volume of demand is expected to be derived from IT-BPM sector, shockingly replaced by e-commerce, BFSI, Consulting agencies and health care sector. During this forecasted period of growth these are the industries showing promising dexterity to lead and accelerate the growth.
The report says that the commercial property demand in India remained stable during the first quarter of 2017, despite the foreseen geo-political and industrial catastrophe. The report also indicated, “The banking, financial services and insurance (BFSI) sector was the biggest driver of leasing activity in Asia Pacific. Prominent financial institutions have secured major leases over 50,000 sq ft in India, Hong Kong and Australia."

There is a forecast, where it’s stated that Asia pacific countries could set a benchmark in leasing office spaces in 2017. Where India will be solely contributing annual average of 32-35 per cent absorption during this forecast period. India is also to observe an office space supply of 125 msf between 2017-2019, since more banks are planning to expand and develop their corporate banking and wealth management business. The BFSI sector is expected to account for 25%-30% of fresh leases in the upcoming 2-3 years.

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RERA Deadline Gets Extended In Goa

People, who had been waiting for property investment in Goa, have to wait till October for the postponement in state RERA implementation. According to the sources, Goa is unlikely to meet the additional time-stretch, given the by the central government on May 1. The Real Estate (Regulation and Development), came into force on May 1, since most of the states and UTs failed to notify, their RERA norms within this time limit, government had given a buffer time of 3 months, which is also about to end by July 31.

The state government of Goa has decided to extend to time limit of notifying the RERA rules for ongoing projects till October. Whereas, the union government and other states have declared that no extension will be granted after July 31. Despite its enforcement of May 1, 2017; the act has been introduced a year after of its bill pass by the both houses of the parliament. As per the central act, all the developers, agents and ongoing projects will have to be registered with the Real Estate Regulatory Authority by July 31.
The more states and UTs delay in their submission, the greater chance of the dilution of the key provisions of RERA. It was said that any unregistered project after July 31, would be declared as unauthorized and RERA holds the complete authority to seize the project. Since, the state government has failed to notify the rules and the authority as on date, the ministry of urban development has granted Goa additional time to register on time.

Designated RERA authority of the state Sudhir Mahajan said, “Builders and promoters can submit their applications of new and ongoing projects in the prescribed form which can be downloaded from the website. For ongoing projects, applications for registration will be accepted up to October 31, 2017, without levy of penalty.”
“Notification of the rules will take time. We will try to do it at the earliest,” added- Mr. Mahajan. Goa is one of those few states, which has failed to meet the timeline of notifying RERA rules. Sources have revealed that state RERA rules of Goa has been parallel to MahaRERA rules, which somewhat diluted the penalty provision for non-compliance by the builders.
The sole objective of RERA enforcement is to bring accountability and transparency to all real estate transactions. Abrupt change in plan of action and other whims of the developers and realtors will be granted no longer under RERA purview. Again, no broker or developer can advertise their respective project before getting registered with RERA. A builder needs to pay Rs. 10 per sq ft as registration fee for a project. Yet, central government is keeping mum regarding this entire event.

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Thinking of Buying Luxury Flats in Delhi? Here Are Some Basic Guidelines

A new property buying with needed luxury amenities in Delhi is no longer a cheap deal in today’s time. Thus, before exploring high-road apartments and the list of amenities that can tranquilize your lifestyle, you need to fix your budget and move ahead to purchase one. Always keep in mind stretching budget might get you a better living in capital, but this might put your future savings at risk at the same point of time. So, don’t let dim your rainy day fund, just to showcase your standard of living. Here are some areas, where you might get tentatively lesser priced apartments in Delhi location.  You might get some tricks and tips throughout this write-up and case your budget accordingly.

Things should not show about the sq ft area. Other costs such as- stamp duty, parking, floor rise, registration, will appear as add-ons. So these things you should know well, before you enter into the big blue marble. So, before fall into the loop of best negotiable price, being showcased by the leading online property portals, you should know the hidden costs that would likely to mount up your budget. First things first, search property online, compare their price and reviews before speaking to a realtor. Take outright information of the locality, before visiting the site. Buyers should be well aware of the due diligence on builder’s previous track record and the quality of the construction he had delivered. If you have limited budget, buying a slightly older property can too serve your purpose.

Delhi NCR is cheaper than that of the other prime real estate locations of Delhi. Capital location has barely any place left for budget apartments. Keeping that projected view mortal, NCR had peripheral areas of Delhi is containing some healthy array in budget lifestyle apartments. These apartments can prove to be better choice of investment, if you continue focusing on three stakes in a clasp.

1. Budget. 
2. Location and 
3. Amenities.

 By far you must have observed the aspect ‘amenities’ we kept at the last in the list. So, this is how you should move ahead in property investing. South and central Delhi are categorized as posh locations. Finding most lavish apartments in this location can be easily done.

Here are some expensive areas of Delhi, could be chosen for upscale living such as- Greater Kailash, Paschim Vihar, Vasant Vihar, Saket, Aurangzeb Road, Defence Colony and Hauz Khas. These areas hem in most popular healthcare institutions, academic institutions, business towers and eminent historical architectures. Delhi is the place came in limelight of late due to its resale residential market and emerging property investment location NCR. Thus, property investment should be planned, which ever place you select to buy residential property one thing is assured that you will get numerous lifestyle facilities.

-LNN (Liyans News Network)- Buy/Sell/Rent property online. To buy affordable flats in Kolkata visit the most trusted online real estate portal of Kolkata. Connect with us for availing the best looking apartments within your budget.

Against the increased registration fee home sales surge in Kerala

Government has already hiked the registration fee and cultivated new registration rule for properties which came into action since July 2016. Reportedly, these two major reforms couldn’t affect the realty sale in Kerala, the sales of apartments in particular. Against all odds, there was an ascending trend in sale in this state observed after revived realty law enforcement. Buying home with RERA assurance appeared to be secured choice of investment to the potential buyers.

After RERA and GST implementation market inclination has become heavier to the ready-to-move apartments, despite their relatively high prices. Buyers are increasingly showing their interest in on-hand projects that have valid occupancy certificates. The real estate industry is witnessing significant change in all real estate practices post RERA. The act strictly prohibits builders to advertise their under-construction projects. While OC ready projects are attracting healthy volume of buyers.

Affordable housing sector is another provision where limited investment can return, some serious steady proceeds.  Rather than spending a hefty volume in luxury apartments, people these days seems to be really interested in affordable flats in Kolkata and other major cities across the country. Kolkata has been mentioned separately, for the city still has some best alternatives in the category of budget flats within spending plan.

According to the updated data of the registration department of Kerala, the total number of apartments registered in 2015-16 was 7,438 in Kerala. This figure increased to 8,039 in 2016-17. The registration department pinned on the increased resilience in real estate has come along with the entry of new set of real estate builders over the past one year in the real estate economy.

However, this growth not up to the expectation of the industry players. According to the market professionals due to the money ban hit property sale had been significantly downwards since the last couple of quarters of the prior fiscal. Had the demonetization move not stir the market the registration volume would have been much higher in comparison to this numbers. The real estate market in Ernakulam has witnessed a marginal increase in terms of property absorption for 2016-17, while the increase in Thiruvananthapuram and Kozikode is remarkably high.

While the registration volume in Kerala has touched the apogee in 2013-14 and 2014-15, the stamp duty and the registration fee were 6% and 2 % correspondingly. The total value of apartments ­ as confirmed in the registration documents in 2016-17 ­ was Rs 2,622.08 crore. The revenue drawn by the government in terms of stamp duty in the course of registration of apartments in 2016-17 ­ was Rs 166.5 crore, while it was Rs 52.2 crore through registration fees.
The existing statistics of the department show is somewhat will confer buoyancy to builders who have been facing a further crisis with GST implementation. The drooping period is only provisional and the industry is anticipating that it will get back to its old rhythm within sometime.

-LNN (Liyans News Network)

Real Estate Slowdown- A Retrospective Overview

Indian property prices are to go up in coming days. The resurgence of property price attributes to the recent couple of policy changes of Indian government. Government is now aiming to attract global revenue into domestic economy. Affordable housing sector is supposed to be the key resource with which government is targeting to bring in. Meanwhile, rumour has it, both residential and commercial business in the country are about to see a corresponding slowdown.

At present developers are busy in reframing their business and the procedure of project registration with regulatory authority and they are very much annoyed with the rigid provisions of RERA. Sustaining business under RERA intervene won’t be that straightforward. There’s a double digit jump in home loan sector derived from loans of lesser than 25 lac in value. Affordable housing sector alone contributed 30% of the total procurement. 33 percent overall surges in home loan over a year earlier.
There is also another report which far from the original which said that there was a decline of one per cent in the number of home loan disbursements of over Rs 25 lakh in value. It can be mentioned as a slowdown anyhow, even though the margin is negligible. Up till now this calculation stands less than a fourth of the total number of home loans disbursed. Especially, the share of loans of more than Rs 25 lakh, disbursed for home loans came down to 24 per cent from 30 per cent the prior year. This holds solid and glaring that in 2016-17 a higher number of people preferred to seek loans of minor denomination, in comparison with 2015-16. Also, regardless of a decline in the number, the total number of loan disbursements during the year raised 23 per cent.

Speaking about the low budget flats under PMAY, it’s foreseen with this pace of project development it’s impossible for affordable housing sector to meet the deadline of 2022. Both the rural and urban projects under central government flagship are mostly on calendar. Even 30% of the project development is not accomplished in a right manner. Low-budget flats in Kolkata and its outline areas are yet to be materialized. Between FY 2016-17, a new trend has been observed in home loan disbursement sector i.e. - a huge slog of 48 per cent in the number of loans of up to Rs. 2 lacs which is also an upshot of government’s push to promote ‘Housing for All by 2022’. In this horse race luxury housing sector has been constantly encountering lower market demand successively. New project launch and luxury property sale have been notably reduced post GST. Yet mid budget flats, those are ranged under Rs. 50 lacs are still in demand. But residential properties with price tags of Rs 1 crore and more are detectably going under on-hand inventory category. These hi-end properties are mostly from the tier I cities.

From its inception till now affordable housing sector has been the centre of the attention of the administrative policies. Accordingly, the developers have been directed towards the development process of budget housing instead of luxurious one. Thus, there is a decline in contention for hi-end residential developments.

-LNN (Liyans News Network)

Bombay High Court Ordered Builders To Be Registered By July 31

Bombay high court (the Nagpur bench) has directed a group of builders to comply with a July 31 registration deadline under Real Estate Regulation and Development Act (RERA), 2016. What happened was a group of builders have applied for the extension of the month end deadline set under the revised Real Estate Act.

After hearing a petition filed by four builders, who questioned the constitutional validity of certain strict and frivolous provisions of the new law which according to them shouldn’t be applicable for the projects that have started before RERA had come into frame and at under-constructional stage.
Against which the union government mentioned in an affidavit that RERA is not against constitution nor it is a retrospective application as ongoing projects are not complete. The centre in its affidavit also said that "The Real Estate Act does not envisage penalty for violations prior to the commencement of the Act.'' The Real Estate Regulation and Development Act (RERA), 2016 was passed in March 2017. Builders have been found largely belittling its legal importance.
Limited percentage of builders has registered under RERA as of now, while the deadline is just at approaching stage. Government also highlighted that the provisions of RERA where it clearly cited that the responsibilities of the promoter and related penalties for the violation. All these were declared nationally from May 1 and accordingly developers should get registered by far. Already the government has allowed 3 months extension period for the registration purpose.

As per the last update a division bench of Justice Bhushan Dharmadhikari and Justice Rohit Deo allowed petitioners — Swapnil Promoters and Developers, Swapnil Associates, Sukhyog Construction and Guru Construction — to revise their petition within a week and adjourned the matter to August 21 for additional hearing.
Senior counsel Mr. Sunil Manohar, who appeared for the developers, said that the developers would comply with the registration deadline for sure but the state should not take intimidating action against the developers. Additional Solicitor stated that if there were no breaches, for instance, "if the builders didn't issue any advertisements or take flat bookings from customers, there would be no question of taking any action".

According to the petition, the provisions where it is stated that opening an escrow account and maintaining 70% balance for the existing project development is against real estate sale and it’s unconstitutional as well from the perspective of real estate business development.

“People who want to buy property in Kolkata incoming days must have to check few things before coming to any agreement with the builders for instance they need to check whether the project and the developer is registered with RERA authorities and having a valid registration number. It’s also recommended for their better security to crosscheck developers’ and realtors’ track record on the state RERA website. Buyers are also advised to be sure about the project’s authentication such as whether the project has received required certificates from several authorities or not for their better security,”- said Mr. Mahesh Somani West Bengal RERA & Realty expert.

-LNN (Liyans News Network) – Avail big GST sale on hi-end luxury flats in Rajarhat. Buy/Sell/Rent property with Kolkata’s leading property portal. Get flat 8% off. Hurry up!

Few Important RERA Revelations

Projects that have completed the construction part, yet to set up the promised amenities won’t be eligible to the have Occupation Certificates. There are total 82 of such ongoing projects in Noida and Greater Noida location as per the sources. Both states are trying to safeguard those projects that have been issued or applied for occupancy certificates from RERA realization. These builder projects won’t be under Haryana RERA ambit. Unchanged criteria of ongoing projects would have created a huge problem. Several groups’ of homebuyers were on the verge of filing petitions in court. This indicates a large number of ongoing projects will fail to obtain the benefits of RERA as these projects won’t be required to register.

State RERA rules of Haryana have kept out massive numbers of ongoing projects of revised RERA regime. Out of 90% ongoing projects belong to Gurugram. Noida City holds the top position, in worst deliverance of the projects. Market experts hope a little difference in Gurugram as both UP and Haryana government have used same yardsticks for under construction projects which are supposed to be come under their state Real Estate (Regulation and Development) Act. This appears to be a big-time difference with the central RERA regime. Central RERA rules made it clear that no project can be dispensed without completion certificate. In Gurugram 90% of the estimated projects (flats/houses) approx 1.7 lac units are in several completion stages of development. These projects have either received the completion certificates or have applies for the same. Sources have also revealed that many of these projects have got part-completion (also an occupancy paper). These projects won’t be part of Haryana RERA. Part-completion doesn’t make the project to be counted out from RERA.
In a real estate project if any tower is under construction and other towers are complete, builder has to apply for separate completion certificate for the under-construction tower. This is supposed to be the most discernable dilution of central RERA Act. Buyers are extremely unhappy with the state government’s rule as it favours the builders where the main issue of the state has been delayed project deliverance.

“Shunning or diluting central law dents the fundamental purpose of RERA implementation. RERA aims at how well the buyers’ rights get protected throughout the entire real estate transaction starting from property selection to the deliverance. Real estate sector dwelling with negative market sentiment, majorly for the delayed deliverance and abrupt change is course of actions by the builders. Inferior quality of the construction or dearth of amenities- these are the most prominent accusations among the others. As West Bengal is on the verge of RERA notification, buyers keep on questioning us whether the state RERA will do complete justice in order to protect the buyers’ rights.”

Dilip Bose, a retired defence professional said, “I have purchased a property in north Kolkata in Feb’ 2016, which was supposed to be delivered by this year June. The developer is constantly holding us up saying he has not received the OC from the state RERA authority. Under this circumstance I doubt how far RERA will be effective to safeguard buyers’ rights”.
Alike Mr. Bose the entire real estate market is in vague whether RERA will be that powerful to provide unbiased judgement to the buyers. Let’s just wait till July 31.

-LNN (Liyans News Network)

Developers To Put To Use Precast And Dry Well Systems To Speed Up Affordable Housing Project

Big news for budget homebuyers more volume of affordable projects are going to hit the market in no times. It’s not that government has approved more projects than scheduled. It’s for meeting the timeline of central government flagship project ‘Housing for All by 2022’. In order to develop comprehensive projects, now developers are aiming to use up new construction techniques like aluminium shuttering, precast concrete technology and fast drying systems to deliver projects within the specified time limit. Thus, it’s predictable that along with the other metros residential property sale in Kolkata will also speed up. Highlighting Kolkata as property price in Kolkata is cheaper than the other states, coining which Kolkata holds the capacity to lure the investors from various blocks of the income brackets.

Property consultant company Colliers International suggests that particularly after the Real Estate Regulatory Authority (RERA) Act underlines timely deliverance of projects, developers are considering advanced techniques and automation for rapid development of their respective projects. Adoption of modern technologies will help them to a greater extent for timely deliverance and well as top keep going under stringent RERA norms. Delay in deliverance will cost them greater than their business.

Buyers now demand fast completion of a world-class quality project against their investments. Besides, the growing need for commercial properties side-by-side the residential ones also insists faster development of the due projects. Thus, it has become the need of the moment to use advanced construction materials and mechanism to meet the market demand. The construction business in India is presently on the verge of taking up new technology, digitization, advanced materials. Artificial intelligence is the latest addition in the block. It has the potential to singlehandedly sort out all-inclusive issues of the development process. These technologies are not only economical but reduce the input of extensive manual labour, advanced earthquake resistance, more durability than traditional constructional process such as- higher carpet area, smooth finish on walls and lower on continuance..
Sources say that about 2 million affordable homes are yet to be built under PMAY scheme across the country and all these need to be completed within 2022 withal.

The entire development needs to be certifiably durable so that affordable housing sector can attract heavy investment and bring realize bigger success to union government’s one of the most ambitious projects till this time. Many private developers have started using these technologies to finish their affordable housing projects and to boost this noble initiative of the government for providing homes to the homeless and economically weaker section of the society. Experts say that today’s affordable housing is tomorrow’s big ticket. Affordable housing is currently going through the roofs with government’s incentives and reduced home loan interest facilities. It’s also discounted from GST ambit. There is also significant (20-25%) growth in housing loan business coming from the demand of apartments priced under 30 lacs.  Currently, developers are full of hands with attractive options of budget apartments.


-LNN (Liyans News Network)

Realtors Demand M-sand Production To Snowball

Private players are facing major criticism for reducing the production volume of river sand (M-sand) from the entire realty market of Coimbatore.  This time construction contractors and realtors association have accused manufacturing companies and relatives authorities for the same. As per the latest market statement the supply of M-sand has dropped from 40,000 loads of sand to 4000 per day.

The prime reason behind this shrinkage in supply is limited numbers of manufacturers in the region. Sources say that, there are not more than 12 local manufacture companies of M-sand in the area.  In a press conference subjected to the scant production issue president of the Builders Association of India, Coimbatore, K Rajavel said, "Earlier the cost of one load (275cubic feet) was Rs 12,000, and now it costs us Rs 35,000. While we are with the state government in trying to regularise the sale of river sand, we urge the chief minister to regularise the manufacturing of M-sand too."

In Coimbatore the total production capacity of M-sand is 50 loads as revealed by the president of the Coimbatore Civil Engineers Association R Karthick. Apparently this production is insufficient to serve for Coimbatore region. In comparison to Coimbatore other states are manufacturing greater volume of M-sand. Using M-sand is better than using natural river sand in the construction process. River sand is really useful for plastering purpose. M-sand (Manufactured sand) is perfect alternative river sand which eventually dries up fast. Again M-sand is cheaper than river sand (Rs. 2000 for 100 cubic feet).

Now, realtors of Coimbatore are unable to purchase M-sand from the next-door states as they are legally bound by the Mines Act. Thus, the only way to fulfil the requirement of the state is to make better the production volume of districts and the states. State government should intervene in this matter as soon as possible to standardize and the licensing the production process as well.
Depending on the capacity it requires 5 acres of land and 3-5 crore investments on machinery, materials and man power. It’s not that there is shortage of mining in the state. On an average 100 people from different districts are willing to set-up manufacturing units and they are waiting for the state government’s single nod.

Realtors confirmed that this matter is already on the table of the state ministry and the chief minister of the state has promised to check out this matter. Former chief minister J Jayalalithaa announced that M-sand can be used for the construction purpose of offices and PWD buildings. Currently, the realtors are facing problems regarding mining, environmental clearance and power permissions. In a bid to aware the state government to their demands, the realtors’ associations will march from the Womens' Polytechnic College to VOC Park and meet collector T N Hariaharan and place their demands.
-LNN (Liyans News Network)- Browse our online property portal if you are interested in buying flats in Rajahat. Only in Kolkata we are having the best wide range of listed luxury properties in Rajarhat. Have a close look at the lifestyle apartments/penthouse/ bungalows in Rajarhat.

Housing Society Lifestyle Will Be Fancy With GST Rollout

This might sound bizarre, but living in a housing complex will cost you chock-full. GST is likely to umpire the taxability on every transaction. Taxpaying on realty apartments will be mostly unchanged as it will boil down multiple taxability into a single one. On which experts think that implementation of GST will bring down property prices nationally. While property purchase will be cheaper, living in a gated society will definitely roast your leisure.

Higher maintenance charges 
GST will likely to fire up maintenance charges of the society. Post GST maintenance charge will set to get under 18% tax slab, which will levy additional burden of 2.5% on inhabitants. The existing rate is 15.55%, which includes 15% service tax, 0.5% Swachh Bharat cess and 0.05% non-agriculture tax. The liability of taxpaying is to be imposed on the end users not on the sellers. Expenses such as- legal fees, security expenses, transport charges, labour charges might attract GST on RCM (Reverse Charge Mechanism) based on whether the CHS (cooperative housing society) billing surpass Rs 20 lakh or not in the previous FY. Maintenance charge will directly payable to society.

Not including property tax
Government hasn’t subsumed property tax into the fresh tax regime. Property owners will keep paying property taxes on yearly basis according to the state GST law.

Additional charges
Barring AMC (Annual Maintenance Charge) water usage will be accountable under a separate head of GST. But electricity bill won’t be taxable under GST.

Repair or renovation to be acclamatory 
In case housing society carries out any renovation, repairing or even paining and needs to buy commodities such as- cement, paint or steel, the tax paid for the same purpose will be deducted from the total amount paid under GST tax regime.  But it’s only possible when the society welfare association makes full use of the input credit. Hence, the repair fund will attract 18% tax slab of GST.

Housing societies with advanced pursue and annual corpus of over 20 lacs should get registered under GST ambit. On monthly average of 5k maintenance charge if the annual maintenance cost stands over 20 lacs, then the society will be liable to pay GST. If the total billing is more than 20 lacs but less than 75 lacs the CHS may choose to call for the composition scheme.

-- LNN (Liyans News Network)- Buy flats in Rajarhat before GST. Huge sale is ongoing on the luxury residential projects. Invest in lifestyle apartments for advanced future. Save up to 5 lacs with every successful deal. 

How Much Rent Can You Rightly Afford?

Assessing your requirements from a rental apartment is easy but what’s not that easy is obtaining all those needs within your budget. Thus, before even thinking of a rental apartment, we insist you should most likely know what your budget is. Calculating your budget is not tough as nails. Here we give you evenly suggestion for measuring your rental affordability.

Not sure how much you should spend for rent? This is the general guideline to assist you resolve what the exact rent against your income.

Ascertain a budget- Assess your income as in salary, bonus, interest, dividends. Expectedly 60% of the earning gets spend on family which includes- food, household stuffs, transport, several policy EMIs. Thus, stretching budget for housing rent might lead to scarcity of emergency funds.
Mathematical solution- On the base of certain assumption monthly property rent should be around 30% of your income. This calculation might vary on man to man basis. For example 20% population of the country spend almost half of their earning on comfortable residential lifestyle.

Monthly rental calculation- There is a 50/20/30 analytical method by which experts calculate average rental affordability.

This goes as following-

• 50% on fixed costs- (Paid monthly/Per annum)

• 30% on every day expenses- ( Shopping/Entertainment or Dine out)

• 20% on economical goals- (Loan repayment/ Insurance premium/ Emergency savings)

The amount that will be left out after all these expenditures will be there for your house rent. It’s exactly the proportionate to the subtracted value of the above said expenses and other relative financial liabilities.

Some additional fees- If you find your rental apartment through an agent. The professional fee of the broker will be added to your expense burden. Commonly they charge something around 8%-15% of entire year’s lease value. It would be an upfront payment during the time of agreement. There will be a deposit to consider the move-in cost also. Then there will be security deposit money payable to the land-lord which is roughly equivalent to a month’s rent, though the same would get refunded during the time of your termination of tenancy agreement. Again if you are moving to any unfurnished apartment, the furniture cost will be added to your outflow.

However, spending less than 30% on rent of your income is a smart lifestyle solution. The modern trend is rather than spending monthly hefty amount on rent choosing affordable urban housing for your well-maintained lifestyle.

Have a look at low budget flats in Kolkata, these lifestyle apartments cost you less than your ever-increasing rental value. The purchase value won’t sit on your savings. You can avail all standard facilities and amenities befitting for your lifestyle.

-LNN (Liyans News Network)

Rent On License, Not On Lease – New Profit Mantra For Buy a Flat

An ill tenant can give any landlord many sleepless nights. Presently, price of real estate units in metros and suburbs has hit the roofs. As a result, about half of the population settle with rented nests. In Kolkata a huge volume of such rental provision is found in flats in Rajarhat area.  But a squatter is someone who refuses to surrender the occupancy even after contract is over.  The best solution to this ado is Leave and Licence Agreement.

There are two options available in terms of putting the apartment on rent either Leave and Licence or lease. Now the fact is that we use both of these terms interchangeably, but they are radically different from each other.
Licence Agreement- Section 52 of the Indian Easements Act, 1882, gives permission to the licensee to use the property, Section 105 of the Transfer of Property Act, 1882, terms lease in which a tenant has exclusive possession of the property for a specified time period to the exclusion of everyone, including the owner.

Lease Agreement- Rental leases generally last for 12 months, although many landlords opt for an 11 month lease to pass up rental control laws. Rental leases can habitually be simply extended or shortened if negotiated with the landlord in advance. Most rental leases need a minimum occupation period equivalent to the duration of the lease.

The former set of rules is mostly used to rent out commercial properties across the country. Major state like Maharashtra, especially in Mumbai follows the same procedure while renting commercial spaces. A leave licence agreement doesn’t really have much in favour of the tenants related to their right of the tenancy. It’s the landlord protective mechanism to wit. It’s mostly due to the ignorance of people make snafu in order of the application.
You can actually make a lot of money with your apartment on rent. But most of the people in metro and Tier I and II cities fear of renting apartments fearing immoral claim by the tenants and never-ending litigations. As licence agreement creates a big hole inside the pocket, thus landlords mostly go with the lease option. Licence agreement doesn’t include stamp duties, whereas it’s as costly as the stamp duty in most of the cases. But it’s wiser to be cautious if you want to avoid unnecessary future problems. Thus, it’s advisable to stick to the licence agreement even if it’s costly.

A directive structure under the draft Model Tenancy Act has also been proposed by the government of India for residential and commercial properties in India. The proposed law seeks to bring stability the rights and duties of both landlord and the tenant under a contract (through legal route). The draft discuses about setting up of rent courts rent authorities and rent tribunals by the Centre, states and Union territories on the principle of “natural justice”.

-LNN (Liyans News Network)

New Project Launch Dimmed In Major Cities By 16% (Jan-March)

A negligible number of new launches across top eight cities witnessed an average decline of 14% year – on – year in 2016. For now, the residential unit launches have declined in 2016 by 12% to more or less 113,000 units and the unit launches continued to be cascading in the first quarter of 2017 as well. According to the Cushman & Wakefield report Country’s top 8 property markets have witnessed a 16% on-year reduction in new residential project launch which indicates that there’s a sag of 25,800 units of new launches in the in the Q1 2017.  New residential launches have dropped nearly 8% during the period April 2016 to March 2017 compared to the same period in 2015-16.

Following by a growing demand market is expecting natural flow in new project launches post RERA implementation. While most of the states are yet to submit respective RERA rules buyers are pretty unsure about the revisal of dynamic market graph. It’s prescribed that RERA implementation won’t collide with the current market price in the short to medium term.

Kolkata has always given a stable and fair market for top to bottom of the pyramid.  But these days, People are mostly choosing low budget flats in Kolkata over the luxury ones. Interestingly, there has been a hike in affordable project development of 30% compared to 25% in the same period in FY 2015-2016 counterbalancing the viable market demand. While, the sale of ultra-luxury residential projects have been dropped by 11% from 13% during the same period due to compressing market demand. Yet, a measured sale growth is predicted at the second half of 2017.

Major property markets such as Delhi, Bengaluru, Mumbai and Kolkata are currently sitting on huge unsold inventories. New launches in Bengaluru almost dipped by one-third compared to the previous quarter. Developers are trying to reduce their inventory level with attractive packages and bonny offerings in order to the push the sale upwards as well as to mature the present market condition which is kind of forcing them to freeze the new launches. It seems like builders have to wait for another couple of quarters prior to any new launch.

“RERA is the much awaited realty review platform. It will play a pivotal role in determining the economic framework of demand and supply. RERA will eliminate the faith dearth between buyers and builders. Residential sector will recover soon after the developer and the realtors start practicing in justifiable course realty under RERA domain as it will apply a uniform code of conduct for developers across country,”- said RERA (West Bengal Chapter) expert Mr. Mahesh Somani.