I worked in the Service Tax Office of the Central Government. The SIV Branch of the Service Tax Divisional Office, Kakinada, a 3-tier Town having population of about 5 lakhs declared a Smart City, in the District of East Godavari of the State of Andhra Pradesh, booked about 150 offence-cases against the builders during 2015-16 and 2016-17. These builders entered into Development Agreements with land-owners, shared the constructed flats with the land-owners and did not pay Service Tax on the flats during construction. They did not register with the jurisdictional Service Tax Range Offices and paid up the taxes only during survey and verification. Some of them are yet to pay the Service Tax. Some of them collected the Service Tax and did not pay to the Central Government. Some of them openly stated that they will not pay Service Tax. It is unfortunate that there is no co-ordination between the different chapters of CREDAI in terms of sharing the information about the builders undertaking construction. Overall, it is an indicator of poor statutory compliance on the part of the builders. It is time the real estate developers did their business like any other professional expecting reasonable margins to gain the confidence of the customers. Hope the future turns bright for them.
I worked in the Service Tax Office of the Central Government. The SIV Branch of the Service Tax Divisional Office, Kakinada, a 3-tier Town having population of about 5 lakhs declared a Smart City, in the District of East Godavari of the State of Andhra Pradesh, booked about 150 offence-cases against the builders during 2015-16 and 2016-17. These builders entered into Development Agreements with land-owners, shared the constructed flats with the land-owners and did not pay Service Tax on the flats during construction. They did not register with the jurisdictional Service Tax Range Offices and paid up the taxes only during survey and verification. Some of them are yet to pay the Service Tax. Some of them collected the Service Tax and did not pay to the Central Government. Some of them openly stated that they will not pay Service Tax. It is unfortunate that there is no co-ordination between the different chapters of CREDAI in terms of sharing the information about the builders undertaking construction. Overall, it is an indicator of poor statutory compliance on the part of the builders. It is time the real estate developers did their business like any other professional expecting reasonable margins to gain the confidence of the customers. Hope the future turns bright for them.
In order for real estate prices in INdia make sense, there should be change in attitude in peoples mind. People should reject real estate as a form of investment.
Do you invest on the food you eat every day ? Do you invest on cloths you wear every day ? Like buying them and selling some time later for higher price ? Well. Housing too should be in that category.
Government too must provide alternative investment channels like bonds and securities that can directly help increased funding to the industry which in turn can create jobs. What is happening now, is people are pouring all their monies into jacked up real estate and it is sucking up all the wealth generated by liberalization. Buy a piece of land and sell it for a profit later can only do one thing - suck some one else's increased income without any contribution of employment generation.
If government can control real estate and regulate it like stock market, EVERY SINGLE COMMODITY in INdia will become cheaper ( including food grains and vegetables) and also stops rapid conversion of food growing agriculture lands into concrete khabarstans.
Re: Government must provide alternative investment channels
by mihir mehta on Nov 14, 2017 09:55 PM
ur mind belongs to 19 th century.u need serious improvement.get well soon
Re: Re: Government must provide alternative investment channels
by anil kamat on Nov 15, 2017 09:26 AM
and suppose ur mind is from 22nd century where Machine controls Human ??? Wake up ....What is said here is true and not wrong....
Now, everyone slowly understanding why there is so much ruckus about DeMonetization. It is the real estate mafia that is spearheading the protests.
Guess which political party lost millions of dollars of party funding as a result of DeMonetisation. The same political party which is shouting it's lungs out that DeMonetization cost jobs.
Real estate in India us what Pharmaceutical industry of the USA - a mafia like entity. So much money is at stake that they can change presidents and prime ministers.
Indian real estate thrives on SATTA like mechanism where prices are dictated not based on demand and supply but greed and corruption.
Indian Real estate prices are inflated by 100% their reasonable price ( A 'property' that costs 1 coreINR is actually worth less than 50 lacs).
Re: Inflated by 100% their actual prices
by venkat on Nov 14, 2017 11:34 PM
Excellent!! Very well said. The root cause of many ills in India is the mindless and inflated real estate. The real estate price inflation should be not more than 5-10% a year. Then people will stop investment in real estate. Only then, land will be available for more productive economic activity like manufacturing and the cost also will be competitive in the intl market. The real estate which is presently connected with the sand mafia is plundering the rivers day in and day out. Even at the present state of real estate, we will be left with no river sand in a few years, that will spell death knell to agriculture.
