SC scraps Rs 2cr transfer fee demand of hsg soc. Society can’t charge more than Rs. 25000
In a major relief for a plot leaseholder asked to pay Rs 2 crore transfer fee by a housing society in Juhu Vile Parle Development (JVPD) scheme, the Supreme Court has refused to interfere with a six-year-old Bombay HC order that said the society could not charge above the Rs 25,000 cap set by the state for transfer of membership. The SC order has ensured businessman Unmesh Kamdar doesn’t have to pay over Rs 25,000 to The New India Cooperative Housing Society to be its member, after buying 999-year leasehold rights to a JVPD plot from its previous leaseholder in December 2004.
The SC bench of Justices Rohinton Nariman and Vineet Saran said on April 23: “We do not find any reason to interfere with the impugned order of February 1, 2013, passed by the Bombay high court. Accordingly, the appeal is dismissed… However, the question of law is kept open.” Former HC Judge B H Marlapalle who appeared for Kamdar said, “This apex court order is a victory for us. But it also means that in future if there is a dispute over transferring membership to any other member, this order will not come in the way of the Supreme Court to consider the society’s contention on the point of law.” However, legal experts say the HC order of a cap of Rs 25,000 as transfer fee would be applicable and hold good for any similar cases that may come before it, in future.
Godrej Properties buys RK Studios, to build residential, retail complex
Godrej Properties has acquired the iconic RK Studios in Chembur and plans to build a residential and luxury retail complex on the prime real estate land spread over 2.2 acres. In a statement on Friday, Pirojsha Godrej, the executive chairman of Godrej Properties, said: “We are happy to add this iconic site in Chembur to our development portfolio. This fits well with our strategy of deepening our presence in key locations across India’s leading cities. We will seek to ensure we celebrate the remarkable legacy of this site with the goal of delivering an outstanding lifestyle for its residents.”
Bundling of car parking, pool, gym facilities while selling flats to attract lower GST
Bundling of facilities such as car parking, swimming pool, club and gym with residential apartments will be treated as composite construction service and attract a lower rate of the goods and services tax (GST), according to an AAR ruling. Following the ruling, these services will be regarded as composite construction service and attract 12 or 5 percent GST, as against 18 percent levied of a variety of other services. The verdict by the West Bengal bench of the Authority for Advance Ruling (AAR) clears the confusion with regard to the GST rate to be levied on additional services provided by realtors to homebuyers. The ruling was given by the AAR on an application filed by Bengal Peerless Housing Development seeking clarification whether additional services would be treated as composite supply with construction service since they are usually bundled while booking a flat in an apartment complex. “The applicant (Bengal Peerless Housing Development) is providing service of construction of a dwelling unit in a residential complex, bundled with services relating to the preferential location of the unit and right to use car parking space and common areas and facilities.
Builders to refund GST on cancellation of flats booked in FY19
Issuing clarification in the form of FAQs on GST rate changes for real estate sector, the Central Board of Indirect Taxes and Customs (CBIC) said that builders will have to refund GST paid by homebuyers if he/she cancels the flat booked in the last fiscal and will be allowed to avail credit adjustment for such refunds. Also, builders, not buyers, will have the power to choose between the optional GST rates decided for the real estate sector by May 10.
The FAQs come after the GST Council reduced GST rate to 5 percent for residential units and 1 percent for affordable housing without the benefit of input tax credit (ITC) effective April 1, 2019, for projects which commence on or after April 1. For ongoing projects, the real estate promoters have the option to choose between a 12 percent rate with the option of input tax credit (ITC) or 5 percent without it, and in the case of affordable housing projects, an 8 percent rate with a tax credit or a 1 percent rate. If realtor opts for the new rate, 80 percent of inputs and input services have to be purchased from registered vendors and value of purchases less than 80 percent will invite a reverse charge of 18 percent, except in case of cement, where the applicable rate is 28 percent. A “Residential Real Estate Project” has been defined as the one where carpet area of the commercial apartments is not more than 15 percent of total carpet area of all apartments in the project.
Mira Road: The budget buyers dream destination
Located to the North of Mumbai, Mira Road is governed by the Mira Bhayandar Municipal Corporation (MBMC) and is one of the hot spots for residential living. In the Western suburbs, Mira Road has made its mark as a popular residential destination. No wonder, there is a rise in demand and the subsequent increasing price trends is making it a good investment option. Also, the presence of commercial centers in and around the locality is helping people move towards Mira Road.
Connectivity: Mira Road enjoys good connectivity via the railways which are the lifeline of Mumbai. Speaking of roadways, the Western Express Highway connects Mira Road to various places of Mumbai. Mira Road is linked to Thane and Navi Mumbai by Ghodbunder Road, via National Highway 4. Mira Bhayandar Municipal Transport (MBMT) makes its bus service operates in the locality. The nearest airport is the Chhatrapati Shivaji Maharaj International Airport.
Liveable hubs: There are several well-known residential hubs in Mira Road like Shanti Nagar, Naya Nagar, and Sheetal Nagar. These are located in close proximity to areas like Shanti Park, Sanghavi Nagar, Hatkesh, Silver Park, Golden Nest, Jangid, Pleasant Park, Geeta Nagar, Beverly Park, Evershine Enclave, Shrishti Complex, Shanti Gardens complex, Garden and Vihar complex. While it is away from the main city center, it is well connected to the other key areas and makes for a good investment option for people who want to rent out their flats to working professionals.
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