June 2017 Vol 01
Realty buyers in state to now pay VAT on staggered payments
In a move that would impact all real estate transactions across the state, the Maharashtra government has issued a notification to levy value added tax (VAT) based on staggered payments received from home buyers. With this, buyers making payments before June-end for under-construction properties will be charged 1% VAT, while payments made after that will attract 6% state GST under the new tax regime.
Raring to go to RERA with your OC issue? No dice
Month-old real estate regulatory authority parcels off homeowners lacking the crucial document to state housing department for a solution. The Authority has passed the buck on to the state housing department, asking it to come up with a solution to the issue of developers giving possession of flats even if they haven’t secured the all-important certificate for their building. Nearly 56,000 buildings in the city don’t have an OC.
Demand for property in Navi Mumbai set to rise
Affordable housing and new infrastructure developments have given a big boost to the realty market in Navi Mumbai. In the last few months, affordable housing scheme has worked in favour of the realty industry, benefitting both – first time buyers as well as developers. Navi Mumbai too has witnessed striking growth in realty market owing to focus on affordable housing, making it one of the hottest property destinations today.
Source: Mumbai Mirror, Saturday 3 June 2017
Projects in areas with established educational, medical, retail and recreational facilities are likely to find more buyers and higher appreciation than an upcoming, underdeveloped location. Here’s taking a look at why infrastructure developments are important for property investors……….. What is infrastructure: Infrastructure provides essential services that drive economic growth, employment and productivity. In short, they can be classified into three main categories. Utilities: electricity, gas, communications and water; Transport: airports, roads, and rail; Social: schools, hospitals and community facilities.
Source: Mid-Day, Friday 9 June 2017
Better safe than sorry!
The focus of developers today, is on not only providing fancy elevators and escalators to their residents, but also lacing them with the right kind of technology for the safety of the home-owners. In any tall residential tower, efficient vertical mobility is a critical component of development and construction. Hence, in addition to installing lifts and escalators, their safety aspects also have to be kept in mind.
Besides all these, regular and periodic maintenance of hydraulic lifts should also be undertaken. The residents should also be trained to use fire extinguishers and fire hydrants without injuring themselves till the arrival of rescue squads and fire brigades. “Elevators in high-rises do pose substantial safety concerns such as freefalling lifts, power loss and faulty automatic doors, which must be addressed on a priority. Compromising on safety and cost almost never ends well. As of today, elevator technologies have advanced to cover vertical distances at optimum speeds, while safety is accounted for by state-of-the-art machinery,“ says Dharmesh Jain, chairman and managing director, Nirmal Lifestyle.
Those paying Rs 50k rent must cut 5% TDS
From June 1, individuals who pay a rent of over Rs 50,000 per month are required to deduct tax at source at 5%. The relevant section in the Income Tax (I-T) Act – section 194-IB was introduced by the Finance Act, 2017 and it widened the scope of withholding tax by making individuals also responsible for tax deduction at source (TDS) on rental payments exceeding the specified sum.
Rents in metros are skyhigh and it’s likely that many tenants will have to meet with the obligations of withholding tax, depositing it with the government and also filing the relevant documentation. The silver lining is that compliance formalities have been made easier for individuals who are tenants. The Central Board of Direct Taxes (CBDT) issued on June 8 a notification relating to some compliance requirements.
72-courtroom HC building to be built in Bandra east
The state government has earmarked a 10-acre plot in Bandra (east) to build a new Bombay High Court complex as the court’s existing building in south Mumbai struggles with a grave shortage of courtrooms and attendant space for staff.
The new complex will supplement the court’s current heritage building at Fort which has been stretched to capacity following appointment of new judges and a manifold jump in pending cases over the years. The plot at the Government Colony, apart from a10-storied main building with 72 courtrooms, will also have residential quarters for judges and top administrative staff. While the judges and the court staff will be provided with underground parking, there will be a multi-storied parking lot for litigants and lawyers that can accommodate up to 700 cars.
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