BBMP (Bruhat Bangalore Mahanagara Palike) has proposed government to extend deadline for property tax for one month. If proposal is accepted property owners can pay property tax with rebate on or before July 31st. If this proposal is accepted property owner gets one more month relief in paying tax and paying tax without rebate will move one month further to August 31st. BBMP clarifies that there was high demand from property owners that they will not be able to make heavy payment on due date. The payment of second installment will continue to be November 30. The forms can be obtained from help centers. The BBMP is also planning to make them available online.
Archive for May, 2009
Large Cooperative Housing societies in India have to pay Service Tax
Wednesday, May 20th, 2009Service Tax for Cooperative Housing societies
Service tax charge is charged on service provided by Cooperative Housing Society (CHS). In rules of service tax department, if a cooperative society crosses the collection of four lakh rupees from its members, service tax is warranted on taxable services. Total Service tax would be 12.24 % (service tax is 12% and 2% education tax on the top of it). Therefore collection of less than four lakh rupees per annum by a society does not warrant any service.
Service Department rule says, cooperative housing societies (CHS) can be taxed under the group of ‘Club of Association Services’ as included in u/s 65 (105) of the Finance Act, 1994 effective from June 16, 2005. ‘Club’ or ‘Association’ is classified u/s 65 (25a) of the Finance Act (No.2), 1994 as revised by the Finance Act, 2005.
The description mentioned above is quite extensive and envelops almost any individual or body of individuals providing service to the members of its society, amenities or returns for a payment or any other amount comes under. It is under these stipulations that the department levies tax on cooperative housing societies as service tax. Thus, since June 16, 2005, it is mandatory for cooperative societies to pay service tax.
For a cooperative society, service tax will have to be paid prior to 5th of every month. However, for March, the last month of the year, payment has to be done by 31st March. It must be noted that on the sum accumulated by the society together with transfer fees, donations, transfer charges, repairs and maintenance contributions, 12.24% will be gathered and the same needs to be deposited in the banks endorsed by the service tax department. The proceeds considering service tax have to be filed twice a year. For the period from April first to September thirtieth, the returns need to be filed on or before October twenty-fifth. For the second half of the year, the returns need to be filed on or before March thirty first.
In case of delayed payment, interest has to be paid at the rate of 13% per annum. The service tax department can exercise the power to impose fine as per the terms of Section 76 for non-payment or short payment of service tax and Section 77 for not filing return.
CENVAT credit is offered to cooperative societies in respect to service tax, which comprises all payments made by the society on which the society has paid the service tax, for instance, telephone bills, security charges, etc. Subsequently, all payments done on or after June 16, 2005, are entitled for CENVAT credit.
Interesting Links to follow:
http://answers.yahoo.com/question/index?qid=20070710225606AAWXEz5
http://www.dnaindia.com/report.asp?NewsID=1008540
Mid-Income Apartment Housing In India
Saturday, May 16th, 2009Affordable housing projects have the fastest absorption rates and are focusing on this in neglected sector. Affordable housing Project ranges from Rs 35-40 lakhs. Mid-income housing is thus once again a star in the real estate investment route line-up.
It makes business sense in terms of the volumes the market is offering to developers and social sense because it provides buyers of economical housing more options to choose from. The demand in terms of units is phenomenal. In fact, developers getting into this segment can build for years to come.
We are not here talking of a 360-degree change of focus. This does not represent a complete shift of orientation from luxury homes to economic housing by prominent developers. At best, it is only a branching out. Most big players getting into middle-segment housing continue to build high-end projects. These developers are exploring a business avenue that has stood the test of time in terms of overall sustainability. Moreover, it is a new means for reputed developers to leverage their brand value. Generally, the residential market is chronically undersupplied and there is endless opportunity.
Thanks to higher incomes and the availability of housing loans, buyers in the mid-income housing segment are no longer as price sensitive as they were in the past
There are various factors aiding the mid-income housing segment.The present generation is not conservative about home loans, and is less averse to risk. Moreover, there is now a decided shift from the joint family to the nuclear family. While the past generations did give importance to for the future, they lacked the tools that are at the current generation’s disposal.
Most developers have identified these factors and zeroed in on them by making affordable housing available to these buyers. This benefits both buyer and developer as buyer gets what they want at affordable rate and the developers benefit by the sheer economics of scale. In this win-win situation, some of the biggest names in Indian real estate have begun responding to the clarion call for affordable housing, and foreign funds are pouring in via joint ventures.
As scheduled high-quality mid-income projects come into the market, the Great Indian Real Estate Boom will translate into real time benefits for the common man.
Interesting Links to Follow:
Now, developers plan affordable homes for middle-class India
Development of Rural Housing in India
Wednesday, May 13th, 2009Rural Housing in India
“Rural Housing in India: Challenges and Opportunity” is report generated by Holcim and NCAER (National Council of Applied Economic Research). The report states that in 17 years rural housing stock is expected to rise by 42-44 million i.e., during the period of 2008-2005.
In this report it draws attention to the need for continued expansion of rural housing. The estimate relates to total housing stock and distinction between Kucha and more durable construction is made. For the improving the quality of housing, there need changes in space, design, number of rooms and amenities in the house. Theses changes may also continue in the up gradation of house. Pressure on building material supplies would be significant if conversion house is faster than projected i.e., conversion of housing stock into pucca.
Demand for rural housing in the next two decades will continue and expected to strengthen more. The challenge to find enabling factors such as land, finance and infrastructure services to meet the demands opens a way or opportunity for public policy and private enterprises.
The challenge to find enabling factors such as land, finance and infrastructure services to meet the demands opens a way or opportunity for public policy and private enterprises.
The study based on primary data collected from a sample of rural household spread over different states and the housing data collected during various decennial censuses and NSSOs, there is exactly same rise in housing stock during last 17 years for the period of 1991 to 2008.
Suman Bery, Director General, NCAER, comments that the transformation of the rural housing scenario is still a challenge in India. When comparing rural housing with urban housing, the concept is not well understood. It distinct from urban housing in terms of cost associated with construction. The regional dimension is far more significant in the context of rural housing than for urban housing. “Most importantly, the focus in the policy discussion so far has been on housing for the poor which is an important area. There is also the large non-poor population which requires housing and efficient cost-effective supply of materials, technology and finance”.
The report called for the promotion of rural housing. This, the analysis found, generates considerable employment, and hence income of rural households contributing to better health and productivity of the rural labour force. The report found continued poor quality of the rural housing stock in the country. However, considerable improvements have been made over the period. While there has been continuous growth in the rural housing stock, its pace has been lower than urban housing stock.
The survey also attempted to assess the status of physical infrastructure and housing environment. Almost 50 per cent of households reported having closed drainage systems, with hardly any inter-quintile variation. About 30 per cent of sample households perceived their environment as clean, with the remaining either average or dirty. Those who termed it dirty belonged mainly to the bottom two quintiles. A little over half the household are reported to be connected to pucca/paved roads. Around 10 per cent are without any approach road. The remaining households were connected by some kind of kutcha road.
The promotion of rural housing generates considerable employment, and hence income of rural households, while also contributing to better health and productivity of the rural labour force
The rural areas in India are characterized by small and highly dispersed habitations. They also have a rather poor village or community-level infrastructure. The principal occupation of most rural households is agriculture (or its related activities). Hence, the space requirements of these households, apart from for residential uses, are for livestock and safe storage of grains and agricultural implements. However, there has been some increase in non-agricultural employment.
Links to follow:
