July 2017 Vol 01
BMC passes proposal to remove property tax on sub-500 sq ft flats
BMC has passed a proposal to exempt all houses up to 500 sq ft from property tax the biggest poll promise by the ruling Shiv Sena during civic elections. The proposal, which was passed unopposed in the civic body, also gives a rebate of 60 per cent for houses with area measuring between 500 sq ft and 700 sq ft.
GST – A game changer for the realty industry?
The Goods and Services Tax (GST) implemented recently is expected to have a profound effect on India’s economic prospects. Let us understand how this single indirect tax will impact the realty industry in the long run…………… GST is probably the most revolutionary reform in India. It is expected to add significantly to India’s gross domestic product (GDP) and thus boost the economy. The realty industry is hopeful that if this indeed happens, it will boost the realty industry tremendously.
Effect on Real Estate: According to an E&Y report from 2015, the real estate sector is estimated to account for about five percent of India’s gross domestic product (GDP) and is considered the second-largest employer in the country. However, this industry is riddled with several issues. Chief among them is the management of several indirect tax levies, such as VAT, service tax, excise, stamp duty and registration fees. Developers are hopeful that GST will simplify the tax compliance and minimize the scope for double taxation. That said, it should be remembered that the favourable effects of GST will become evident only within 2-3 years of its implementation.
Source: Mid-Day, Friday 7 July 2017
State hikes transfer fee for homes on govt land
In an effort to mop up funds for the Rs 34,000 crore farm loan waiver, the state government has announced increase in transfer fee on sale of flats in housing societies built on land allotted by the government. The increase ranging from six to 10 times from the current Rs 100 per square feet will affect 3,000 housing societies in Mumbai and 20,000 across the state. The move has not gone down well with the societies which have vowed to challenge it.
As per a government notification published on Friday, for housing societies in Mumbai district which were granted occupancy certificates (OC) between five to 10 years ago, transfer fee has been fixed at Rs 1,000 per square feet or three per cent of ready reckoner rate, whichever is higher. In case of OCs issued 10 to 15 years ago, sale of property will attract the higher of Rs 600 per square feet or 3 per cent of the ready reckoner rate. For societies holding OCs issued more than 15 years ago, the revised fee has been fixed at Rs 400 per square feet or 1.5 per cent of the ready reckoner rate.
OC in 15 days if realty projects stick to plan
In a bid to curb corruption, ensure transparency and speed up the process of clearing occupation certificate for realty projects, the BMC has issued a standard operating procedure for its engineers and officials, reports Vijay V Singh.
Building proposal department engineers, often accused of seeking huge bribes, have been barred from demanding `irrelavant’ documents from builders. In fact, the BMC has listed the files they must examine. If a project has stuck to its original plan, the OC must be issued in 15 working days. In case it has flouted naqorms, its application must be rejected online in 7 days.
Govt nod to 50.31 hectares for IFSC in Mumbai
Decks have been finally cleared for the much-awaited International Financial Services Centre (IFSC) to come up in Mumbai, with the state government approving 50.31 hectares of land in Bandra Kurla Complex. Chief Minister Devendra Fadnavis made the announcement Thursday. “MMRDA has provided 50.31 hectares of land for the IFSC in Mumbai.” He tweeted.
The state government has decided to give the centre a distinct identity by calling it ‘North 51’, which is the pin code of Bandra (East). The government is also working on sister-city tie-ups with Dubai and Qatar. Apart from giving boost to business activities, the project is estimated to provide direct and indirect jobs to nearly 15 lakh people.
Source: The Indian Express, Friday 14 July 2017
Realty investment in the rains!
Monsoons are the best time for evaluating homes for their construction quality and striking a good deal. A resale flat can be white-washed to look new or a developer can cover his construction faults and other aspects on normal days. But monsoons can lay bare the actual facts about the property you wish to invest in.
Source: Mid-Day, Friday 14 July 2017
Coastal Road tunnel: BMC plans advanced ventilation, fire safety
Apart from planning pathways for pedestrians and open spaces, the elaborate planning for the Brihanmumbai Municipal Corporation’s ambitious Coastal Road project will include advanced ventilation and fire safety systems to be installed in the tunnel. As part of the safety measures, the BMC is planning to take up measures to ensure that there are minimal casualties in case of a disaster like a fire or structural collapse.
The tunnel is one of three sections of the South phase, which starts from the Princess Street flyover till the Worli sea link, a stretch of 9.98km, and will help decongest traffic at Haji Ali junction, Pedder Road and Breach Candy. Taking a cue from the system used in tunnels in other countries, the BMC is planning to install a structural fire protection system in the tunnel.
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