GST Effect Relief for home buyers, as Real Estate to be taxed less

A great relief to home buyers, real estate will bear lesser tax load under the new indirect tax regime, Goods and Service Tax (GST), coming into effect from July 1.
Construction of flats, complexes and buildings will have a lower incidence of GST as compared to a plethora of central and state indirect taxes, suffered by them under the existing regime. Thus, buyers will get rid of making higher payments for their already booked properties even after July 1. Central Board of Excise and Customs (CBEC) as well as the states had received several complaints regarding people, who already have booked flats and made part payments, being asked to make the entire payment before 1 July 2017 or to face higher tax incidence for payment made after that, in view of the work contract service tax rate under the GST at 12 per cent for under construction buildings. CBEC however, in an official communication said that this was against the GST law and clarified that central excise duty is payable on most …

Dwarka e-way Rail Overbridge Opens To Traffic

GURUGRAM: After much delay, the railway overbridge at Basai on Dwarka expressway was inaugurated by chief minister Manohar Lal Khattar on Saturday.

The RoB which is located at the junction of Sector 100 and 37-D at Basai village will fill a crucial connectivity gap on the 18-km-long Dwarka Expressway. The construction work on RoB was completed by the end of May and a few days back it was open to traffic for trial.
"We feel proud to announce the completion of Basai RoB, one of the landmark infrastructure projects of Dwarka Expressway. This will connect several new sectors on either side of the road and improve connectivity between Gurgaon and the international airport, after completion of e-way," said PWD minister of Haryana Rao Narbir Singh, adding that RoB will save the travel time for commuters.

Huda administrator Yashpal Yadav said, "Now only 1.4 km stretch of Northern Peripheral Road is to be completed, out of 18 kms. We will try to complete the project by this year.&q…

Griha pravesh tips for your new house, this festive season

When it comes to a property investment, home owners are generally particular about auspicious days and performing a griha pravesh, before moving in. We examine the significance of this ceremony and the points to consider
Indians are generally particular about shubh muhurats, when it comes to buying a property or shifting to a new house. They believe that performing a griha pravesh ceremony on an auspicious day, will bring them good fortune. A griha pravesh ceremony is performed, when one enters a new home for the first time. “It is important, not just for the owner but also for the entire family,” says Mumbai-based Jayshree Dhamani, a Vastu Shastra and astrology expert. According to Vastu, a house is made up of five elements – the sun, earth, water, fire and wind and the proper alignment of these elements in a house, brings happiness, good health and prosperity. “It is believed that entering a home during an auspicious time, makes life easy and there will be minimum struggle for the fam…

GST Bill passed in Lok Sabha: How will it impact the real estate sector?

With the GST Bill being passed in the Lok Sabha on March 29, 2017, it seems certain that it will meet its July 1, 2017 deadline for implementation. We analyse how the latest version of the Bill will impact the real estate sector With 4 crucial bills on GST being passed in the Lok Sabha on March 29, 2017, it’s now a certainty that the GST would be implemented from July 1, 2017. The GST is being touted as the game changer as it would replace several taxes, cesses and surcharges at one go. The realty market is expecting to benefit from the GST rollout, in a major way. Incidentally, the real estate sector will come under the GST ambit within one year of its roll-out Anshuman Magazine, chairman, India and South East Asia, CBRE explained that “With the passage of India’s biggest tax reform in decades, we will become a unified market, with one tax for all goods and Services. Once implemented, GST will significantly ease the ambiguity around our taxation system, promote ease of doing business…

A quick guide to investing in commercial property

While an investment in a commercial property may offer greater liquidity, the funds required to make the investment will invariably be far higher than those required in a residential propertyA person, who is buying a property, has to analyse numerous factors before making the investment. Moreover, these factors will also vary, depending upon whether the investment is made in a commercial property or a residential one. While first-time investors prefer to opt for residential properties, the commercial segment tends to attract investors who have a greater understanding of the realty market. In terms of the fundamental differences, commercial spaces offer greater liquidity in the investment, as compared to residential properties. However, the funds required to invest in a commercial property, are relatively higher than those required for a residential space. A good dealThere are many elements that one needs to consider, while making an investment in a commercial unit during a slowdown, ca…

Running a business from home? Here’s what you should know

While running a business from a home may help a firm to save on costs, those who plan to expand their business in the future, should weigh their options before making this choiceFor many start-ups and small businesses, other than the operational cost, the real estate cost proves to be a major impediment in the intended growth. Thus, a number of small businesses are often run from residential areas. Consultants, advocates, doctors, etc., run their work from their homes. While converting a house premise into an office can help one to save on real estate cost, there are other permissions and expenses that one incurs while doing so.
What does ‘commercial’ mean?Legally, consultants, advocates and doctors can run their business from their house. In a case filed under the Karnataka Shops and Commercial Establishments Act, 1961, the court had clarified that home offices run by chartered accountants, lawyers and doctors, will not be considered as a commercial activity as the work involves intel…

How can I transfer my home loan?

A borrower who wishes to transfer his/her home loan, should keep a watch on the interest rates that one is paying, as well as periodical offers made by banks, from time to timeA borrower can shift the home loan to any other lender, who is willing to offer better interest rates. At times, a home loan applicant may also want to increase the loan’s tenure, due to various reasons. A customer may also want to transfer the loan, if s/he wants a top-up loan on the existing loan and the present lender is not willing to offer the same.

What is the process for transferring a home loan?To transfer a home loan, the existing lender needs to be paid first, before it releases the original documents of the property. However, the new lender will not issue a cheque, unless it receives the original property documents. So, how does one resolve this catch-22 situation? A borrower can request his/her existing lender, to issue a letter to the prospective lender. This letter should mention the list of docume…

Dos and don’ts for investing in later phases of a project

We examine the risks and advantages, associated with investing in phase 2, phase 3 or phase 4 of a projectA well-known developer in Gurgaon, who launched a township project in early 2008, announced the second phase of the project in the same township, in the beginning of 2016. As the project was from a reputed developer, it caught the frenzy of investors and prospective buyers, even though the second phase was delayed, owing to the uncertain economic scenario.
Impact of the 2008 global financial crisis “There are various projects, which now offer properties in their recent launches, under phase 2, 3 or 4. However, not all of these may be good investment options,” says Atul Dhir, a Delhi-based property consultant. The global financial crisis of 2008, impacted the pace of launches and sales in the Indian real estate market, which witnessed a downward movement, thereafter. Several projects were either stalled or put on hold. While there was some recovery in 2014, paucity of funds and econo…

Important ruling on the property rights of successors versus nominees

Upon the death of an owner, will the rights in the property be transferred to a nominee or the successor to the property? We examine what the current legal standing on the issue is, after a landmark judgement from the Bombay High Court

A legal question that has been put to test time and again before various courts, is whether the rights of nominees prevail over those of successors, in respect of various subjects of nomination, such as financial instruments, shares in a cooperative society, etc.

A division bench (two-judge bench) of the Bombay High Court, comprising of Justice Oak and Justice Sayed, recently upheld the rights of successors over nominees. The court stated that the nominees are appointed, to ensure that the subject matter of the nomination is protected, until the legal heirs or legal representatives of the deceased take appropriate steps, such as obtaining probate of the will of the deceased or letters of administration of the estate of the deceased, to claim their righ…