Is it true that a builder has to pay Service Tax when he sells an under-construction property?

As per the new rules, Service Tax will be calculated at the rate of 12.36% of the gross value of the property. But, because there is a Government abatement of 75 % (increased from 67 %), tax will be levied only on 25% of the gross value of the property. The effective rate of service tax is therefore 2.575%.

The 2010-11 budget imposed service tax on all under-construction properties from July 1, 2010. Now, according to the Service Tax Act [Section 65(105)], the developer or builder of an under-construction property has to pay service tax when he sells a property to a buyer. There is only one situation in which the builder does not have to pay service tax when he sells an under-construction property: When he sells a building after a completion certificate is obtained from local authority and entire consideration is obtained from the buyer only after building completion certificate is obtained.

Therefore, although paying Service Tax is mandatory, it can be avoided if:

a.The builder has obtained a completion certificate from the issuing authority.

b. The buyer has paid the entire consideration only after the building completion certificate had been obtained by the builder.

You can even get the completion certificate from an architect or chartered engineer or licensed surveyor. It is not necessary to go to a Government authority to get the completion certificate. You may rely on the notification issued by the Government of India (D.O.F.No.334/03/2010-TRU) which reads as follows:

 “Before the issuance of completion certificate if agreement is entered into or any payment is made for sale of complex or apartment in residential complex, service tax will be levied on such transaction since the builder provides the construction service. Completion certificate issued by a Government authority was prescribed as demarcation by introducing an Explanation in the Finance Act. During the post budget discussions, it was pointed that practice regarding issuance of completion certificates varies from different states. Considering the practical difficulties, the scope of the phrase ‘authority competent’ to issue completion certificate has been widened by issuing an order for removal of difficulty (Refer M.F.(D.R) Order No.1/2010 dated 22nd June 2010). Completion certificate issued by an architect or chartered engineer or licensed surveyor can be now taken to determine the service tax liability.”

However, this exemption above is only from paying Service Tax. You will have to pay Stamp Duty on the sale value of the property if you purchase property after construction.

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Vaastu:Secrets of Living Healthy and Wealthy

Front door or the main entrance:

The most important part of a house is the main entrance, as the main entrance is known as the mouth of the house which brings energy inside the house. Also, entrance plays an important role in Vastu as it is the key source for energy flow.

Do’s

To attract wealth, it is better to make your front door look distinctive. Apply color which is different from the rest of the neighboring walls. The entrance should be clean and clear, it should look spacious. Also, the entrance needs to be well connected with the rest of the home so that the flow of energy can reach to each and every corner of your home.

Don’ts 

According to Vastu guidelines, it is always better to avoid buying property which has a door facing south-west direction. As negative energy enters the house from south-west direction and also brings in struggle and misfortune for the people who live in. The main entrance should not be blocked with any kind of things as it obstructs good energy inside the house. Avoid keeping slippers and shoes around the entrance as it dilutes the entry of positive energy which can get mix up with the dirt and the smell of shoes while entering your house.

Take care of your accessories: 

Clocks inform us about the perfect time. Ensure that all clocks in your house are working properly. If not, then it should be fixed as soon as possible. It means clocks that do not work bring bad luck to your finances. And, clock that runs slow signifies that are running behind your due dates. Also, if you are placing a mirror in your house, place in a position that will give the reflection of your cash box or locker. It is said that mirror helps doubling wealth and opportunities, according to Vastu guidelines.

Keep your windows open:

Windows allow natural lighting to enter the home. In Vastu, proper natural lighting and ventilation holds an important position. It is important to check that proper sunlight is entering into the house and also the house has good cross ventilation option. House with north or east facing windows are ideal as per Vastu guidelines, as morning sunlight brings positivity into the house. South or west facing windows are not recommended in Vastu as afternoon rays are not good.

In Vastu, it is advisable to keep the windows in sparkling condition to allow wealth as dirty glass is likely to restrict the money movement at your home.

Keep fish aquariums:

Fish aquariums play a positive role to attract wealth. It is better to keep aquariums at home for the smooth flowing of finances. You need to choose ornamental fishes or active and healthy fishes for your aquarium and ensure that the fishes are strong swimmer. The constant movement of fishes will help to bring the energy of wealth on a steady flow. Adding to it, always keep the water clean and aerated.

Placement of furniture:

People believe that obeying Vastu guidelines can bring peace and prosperity inside the house. Placement of furniture according to Vastu is also one important thing to look out. In a room, it is better to keep sofa set in south and west direction. When it comes to bedroom, bed should be placed in southwestern direction. Almirah with jewelry and valuables should be placed in southwest of the room leaving southwest corner and the room needs to be opened towards North. The most suitable place to keep dining table is the north-western side of the kitchen, dining room or the living room. To bring more concentration, study table needs to be placed in the North or eastern side of the room.
Original source: siliconindia.com

India's Tallest Residential Towers

1) The Imperial Twin-Towers

Standing at a height of 833 feet (254 metres) the Imperial is one among the tallest residential building in India. This twin-tower residential skyscraper is located in Tardeo, South Mumbai. The Imperial was the tallest residential building in India till Palais Royale came up in June 2012. Besides, each apartment in this building offers outstanding view of the sea. The 4-bedroom apartments spans over nearly 3415 square feet of area couple with world-class amenities. Imperial is designed by Hafeez Contractor, a Mumbai-based architect and the project brought him appreciation and recognition.

2) Palais Royale

The luxury residential skyscraper Palais Royale is located in Lower Parel in Mumbai. It is a tallest skyscraper in Mumbai which is still lying under construction and is estimated to complete soon. This building is coming up on the land parcel which was formerly owned by Shree Ram Mills in Mumbai. 100 apartments spans over 8700 square feet and 14000 square feet of areas and coupled with world-class amenities. This super luxury residential space has a floor plate of 50,000 square and the premises include facilities like spa, cricket pitch, a cinema house, three swimming pools, badminton court, football pitch and so on. The total residential space of this building is around 88 lakh square feet and it is the first tallest skyscraper in the country that has obtained Leadership in Energy and Environmental Design Platinum rating for environmental sustainability. Besides, the architectural and conceptual design of this building is purely based on Vastu Shastra, the Indian form of Fen Shui.

3) Lodha Bellissimo

Standing at a height of 222 meters (728 feet), Lodha Bellissimo, the residential skyscraper topped out the list. This super luxury high-rise apartment is located in Mumbai with an expected floor count of 53 floors. This under construction project is likely to be completed by this year end. This 48-storied residential building is offering luxury at its best. Each apartment is packed up with finest amenities and stunning view of the sea and landscape.

4) Planet Godrej

 Residential tower Planet Godrej is one among the tallest buildings in the country. This tower is standing at a height of 181 metre and 51 floors high. Located in South Mumbai, this luxury residential tower spans over 9acres of beautiful landscape. Planet Godrej was designed by DP Architects, a Singapore-based prominent developer, who for this project, has bagged PINNACLE Award 2006, presented by Zee Business.

5) Antilia

The famous 400,000 square foot residential building, Antilia needs no introduction, it is as iconic as its owner. Antilia belongs to Indian billionaire Mukesh Ambani, the chairman of Reliance Industries. The palatial abode is the personal home of Mukesh Ambani and signifies luxury which offers world-class amenities under one single umbrella.

 Distinctive features that distinguish this house from the others include health spa, parking space for 168 cars, multiple swimming pools, a yoga studio, nine elevators in the lobby and a floor with vehicle maintenance facility. For entertainment, Antilia offers some of the few interesting features. This mansion has ice-room with man-made flurries exclusively designed for Ambani kids, nine elevators in the lobby, one floor of hanging gardens, 2-storey recreation center, ballroom, guest suites and theater with 50 seats.

Although, Antilia is 27-floor high, yet some ceilings are of double heights, it looks closer to the size of a 40-floor building. It is located in Altamount Road in Mumbai. Altamount Road is the second expensive locality in India, where the property prices touch sky.

6) Shreepati Arcade

Residential Tower Shreepati Arcade which was completed back in 2002 has made through the list of tallest residential skyscrapers in India. This tallest building is located in Mumbai’s Nana Chowk locality which lies in the city-centre. Shreepati Arcade is standing at a height of 153 metres (500 feet) and 45-floors high. Six high speed elevators are installed in the building which can reach at 45th floor within 35 seconds. Some of the distinctive features include automated fire safety system, sprinkler system, kitchen and main doors are about two hours fire rated and the building is earthquake resistant. Apart from basic amenities, the club house of this residential building includes gymnasium, sauna & Jacuzzi and so on. Surprisingly, the building has issued a strict rule for its residents where they cannot eat non-vegetarian foods within the building as residents have to be vegetarian.
Original source:siliconindia.com

Latest Property News

Qualification of the prospective bidders for the project that was announced in 2011. With traffic congestion reaching alarming proportions, the state government wants to get the project, which it believes will be the answer to the city’s traffic woes, off the ground at the earliest. The ongoing metro rail project covers 45km of arterial roads — Jawaharlal Nehru Salai (100 Feet Road), Anna Salai and EVR Periyar Salai (Poonamallee High Road) — in two corridors.

“Everything is ready. The transport department will float the final tenders for technical and financial qualification in about 10 days,” said a source in the government. The plan is to bring the five prospective bidders, including Scomi International, Gammon India and Larson and Toubro, on board. They were selected from the eight consortiums that participated in the qualification bidding last year. “The duration of tendering will be 60 days after which the negotiations will begin with the highest quoted bidder. The work is likely to begin in June,” the source said. A high-level empowered committee led by transport minister V Senthil Balaji is overseeing the tendering process.

While the initial plan was to cover 111km of the city’s periphery in the first phase, the government later dropped the plan of including the Vandalur-Puzhal (54 km) corridor. This would have been the longest monorail corridor in the world had it been implemented along with the Vandalur-Velachery, Poonamallee-Kathipara and Poonamallee-Vadapalani sections. “The state will consider this later,” sources said.

The stations have been identified for the project, keeping in mind their access to terminals of other modes of transport, including bus stops, MRTS and metro rail stations. Unlike in the metro rail project, the requirement of private land for mono rail is minimal. The government has formed a team to earmark lands for construction of the stations.

Original source :http://timesofindia.indiatimes.com/city/chennai/Monorail-work-likely-to-begin-in-June/articleshow/18720543.cms

Fair Pro 2013 Chennai trade centre

With 250 projects from 70 builders on exhibit, the sixth edition of Fair Pro 2013 organised by the Confederation of Real Estate Developers’ Association of India (CREDAI) will be held from February 22 to 24 at Chennai Trade Centre in Nandambakkam.

Developers and builders who are members of CREDAI will exhibit various projects including flats, villas and plots priced between Rs.15 lakh and Rs. 10 crore.

Last week, two loan melas were conducted, where about a thousand potential buyers were pre-sanctioned loans by seven bankers based on their eligibility.

Sandeep Mehta, president, CREDAI said, “The idea behind hosting such loan melas is that the buyers would be able to pick those projects that they can afford. Also, after the buyers book a project, they need not undergo the hassles of seeking a loan for it.”

Just two weeks ago, CREDAI launched a portal www.credaichennai.in to help the buyers look out for projects based on budget, location and builder. “Using the portal may help the buyers filter the projects quickly and identify the ones that suit them the most,” said Suresh Krishn, secretary, CREDAI.

Property fair to showcase 250 projects

• 70 Builders
• 250+Projects
• Price Range Rs 15 Lakhs to 10 Crores
• Fast and Simple Transaction
• All under one roof

Also, those who book projects in the three-day property fair will get an iPad free, he added.