Page 26 - Construction Vision Sep-Oct 2017 issue

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EYEING TRANSPARENCY IN REALTY

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BUSINESS WITH GST & RERA

yeing Transparency in Realty Business Real Estate Kings) that, “RERA is a fabulous structure of 12% for home-buyers is a welcome
with GST and RERA. Most of the real initiative and it will be a win-win for all the stake- move along with reduction in paper-work. GST
Eestate developers are registered in holders.” He added that under RERA, all property will also help cut cash component in construction
Maharashtra as per the Maharashtra Real Estate brokers will have to register with real estate as products have to be sourced from registered
Regulatory Authority (MahaRERA) as of now. regulators in their states, thus sieving out the vendors to get input tax credits.”
RERA is expected to protect the interest of the small-time players and consolidating major ones.
The government has informed developers to
homebuyer and ensure timely delivery of
Developers have to be extra careful while pass on any benefits that they may avail under
projects. Both Goods and Services Tax (GST)
uploading any documents for registration from the new tax regime to the homebuyers. Avinash
and RERA will bring transparency in the real
now on. As the new orders from the RERA says Khater, who's the chairman of TREK a group of
estate sector definitely. These acts are supposed
that documents once uploaded by the promoter 69 highly professional, ethical and experienced
to bring in boost within the real estate sector
during registration or project update cannot be realtors of Mumbai comprising of the 'Movers-
through their progressive and diversified roles.
deleted. Advocate Anil Harish, Partner of the Law and-Shakers' in the real-estate consulting
Not only buyers but builders will also be benefited Firm, D. M. Harish and Co added, “The RERA is business said;
from these two acts. One of them such points is all set to bring in transparency into the Real
“The real estate sector is the second largest
that RERA proposes to impose penalty on Estate Sector. The act is bound to forge a
employer in the country after agriculture and
allottee for not paying dues on time. Also, the symbiotic relationship between the discerning
ranks third among the 14 major sectors in terms
builder will have the opportunity to approach the home buyers and genuine real estate
of direct, indirect and induced effects in all sectors
regulator in case there is any issue with the buyer. developers. Specialized regulation and
of the economy. The housing sector alone
In addition GST will help as subsume multiple enforcement ensures consumer protection and
contributes 5-6 per cent to the country's Gross
indirect taxes levied on the developers. fraudulent activities like money trail and curbing
Domestic Product (GDP). GST and RERA will
money laundering. The bill promotes
GST and RERA are expected to actually bring surely bring in the boost within the Real Estate
transparency, fair and ethical practices, through
down the project cost for developers which will sector through their progressive and diversified
disclosure of project details and contractual
inturn lead to cheaper homes. Both acts will roles. “ After these acts are implemented the real
obligations between the project and the buyer.”
provide an audit trail for better control and estate market is expected to grow more for sure.
monitoring of the sector. Though RERA is a RERA and GST over all are expected to add The implementation of GST and RERA will
central law, its execution will depend on state many other rules which can regulate the real ensure uniform tax rates and structures making
governments, as real estate is a state subject. estate sector more comprehensively. the country tax neutral and rates stable in terms
Advocate Parimal K. Shroff of Parimal Shroff and Ravikumar, Director in the Indirect Tax practice of of business.
Co informed in an event organized by TREK (The Ernst and Young said, “A simple single rate tax
24 CONSTRUCTION VISION SEPTEMBER - OCTOBER