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What is the GST impact on real estate?

 

GST is expected to be a sentiment booster for the industry and will seek to revive buyer and investor interest by bringing more transparency in taxation. As the perception of the sector is said to have improved, the prices are likely to drop around one to three per cent if it all they do, according to a report by Edelweiss Securities.

 

The taxation earlier was too complicated for buyers. For instance, buyers were earlier liable to pay taxes depending on the construction status of the property and the state where it is located. Buyers also had to pay VAT, service tax, stamp duty and registration charges on purchase of an under-construction property. However, if the purchase was for a completed property, the tax applicable were stamp duty and registration charge. Furthermore, since VAT, stamp duty and registration charges were state levies, each state specified its own figures. Service tax was a central levy and was charged on construction. So the calculation of taxes was very tedious in the earlier regime. GST charges all under-construction properties at 12 per cent of the property value. This excludes stamp duty and registration charges. No indirect tax is applicable on sale of ready-to-move-in properties hence the tax will not apply to those. The biggest takeaway is that GST is a simple tax that applies to the overall purchase price.

 

A developer could take input credits on sale of under construction property against the taxes that are paid by the buyer. Earlier, VAT and service tax used to account for nearly nine per cent of the ticket price of the property. Since that will be lower than the GST applied to the sector, the builder will have to pass on the benefit of the price reduction to the buyer. The price reduction is on account of the input tax credits that the builder enjoys.

 

Benefit to Developers
If you are a developer, you were earlier charged for Central Excise Duty, VAT and entry taxes collected by the state on construction material costs. Further, you had to pay a 15% tax on services like labout, architect fees, approval charges, legal charges etc. Your tax burden was transferred to the buyer eventually. However, under the new regime, the changes in construction costs are not grave. Furthermore, reduced cost of logistics will result in reducing expenses as well. The input tax credits will also help you increase profit margins and it will be a simpler tax to work with.


Source: - The Indian Express
Date:- July 5, 2017

 

Useful Vastu Tips

SOME USEFUL TIPS BASED ON VASTU AND FENG-SHUI
  • Allow a bright light on the main door.
  • It is best to leave only maximum 5 door open.
  • Avoid keeping a T.V. set in bed-room.
  • Avoid keeping any water feature or plants in the bed room.
  • Do not use seperate mattresses and bed-sheet.
  • Arrange the furniture to from a square or a circle or an octagon in.
  • Brighten the corners.
  • Place a picture of bright sunrise on southern wall in living room.
  • The wind should come from south-west in the bed room.
  • Dining-room should not expose to the front door of your house.
  • Never put mirror in kitchen.
  • Keep the broom and mops out of the sight in kitchen.
  • Keep the bathroom and toilet door closed as much as possible.
  • Windows should open outward normally.
  • Do not keep prickly cactus, plants in the house.
  • Place an aquarium in the sourh-east corner in living room.
  • Place a happy family picture in living room.
  • Please cheque ther aren't grown very high trees like Bangan, Pipal, Thornytrees.
  • Please cheque the gate of the lift is not in front of the main gate of the house.
  • There should not be any room which has shape.
  • There should not be obstructive houses surrounding your plot.
  • The house should be fully airy and has enough water resource.
  • The seat in the latrin should be NORTH-SOUTH.
  • In the office, sit facing the door.
  • Hang a picture of mountains behind you in the office.
  • Place the computer on your right side on the table.
  • A ladder to go up stair curved on the right side should be devided in to two parts. It should be constructed leaving north-east or south-west direction. Ladders stepping down towards north or west creates waste of Lakshmi.
  • One should never hoard stale food, withered flowers, torn clothes, waste paper, waste materials, empty tins, old jars and useless things. These things prevents Lakshmi from entering the house.
  • If there is marble flooring in the house you should see that the old leather shoes are not lying here and there. Marble is considered to be holy stone. If possible avoid marble in bedroom, bathroom, latrine.
  • In a place of worship in the house it is necessary to have open atmosphere. Use marble in the worshiproom. Take care that there is enough light and air. Latrine should not be near worship room. keep cleanliness and always light insense sticks.

Vastu Colour Indication

 




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