29 - 06 – 2020

CREDAI Bengal Daily News Update | 29.06.20

WEST BENGAL NEWS

Green move: NKDA plans to install solar 'trees', road studs

The New Town Kolkata Development Authority (NKDA) is taking up an initiative to increase

the use of renewable energy in New Town. The authorities have decided to install five solar

'trees' and about 1,300 solar road studs across the township to reduce consumption of

conventional energy to some extent.

The solar trees will be installed on the pavement beside New Town Mela Ground and Swapna

Bhor Senior’ Park. The total power generation from these five solar trees will be 5 kWp.

Tenders have already been floated for the job.

Officials said that a solar power tree is an artificial tree-shape installation that has branches

made of steel and holds the photovoltaic solar panels on the branches.

Newspaper/Online The Times Of India ( online )

Date June 25, 2020

Link https://content.magicbricks.com/property-news/kolkata-real-estate-news/green-

move-nkda-plans-to-install-solar-trees-road-studs/114188.html

NKDA will also install a total of 1,340 solar road studs on several stretches, especially in the

parking and service lanes of the main arterial road and in front of Swapno Bhor and mela

ground.

________________________________________________________________________

OTHER NEWS

Realtors have time till Jun 30 to pay GST on shortfall in input

procurement from dealers

The GST Council had allowed real estate players to shift to 5 per cent GST rate for

residential units and 1 per cent for affordable housing without the benefit of input tax

credit (ITC) from April 1, 2019.

Real estate companies that opted for lower GST rates of 1 per cent and 5 per cent from April 1,

2019, but could not procure 80 per cent of the total supplies from registered dealers, will have to

pay tax on the shortfall in such procurement by June 30.

The GST Council had allowed real estate players to shift to 5 per cent GST rate for residential

units and 1 per cent for affordable housing without the benefit of input tax credit (ITC) from

April 1, 2019.

However, they were mandated to procure at least 80 per cent of the inputs from registered

dealers.

Any shortfall in the procurement would be subject to goods and services tax (GST) to be paid

by real estate developers at the rate of 18 per cent on supplies used as inputs or input services

and 28 per cent for cement.

In an instruction to Principal Chief Commissioners of Central Tax on June 24, the Department

of Revenue said it has been decided that in case of shortfall from the said threshold of 80 per

cent, the promoter/developer shall pay the tax on the value of input and input services

comprising such shortfall and this tax shall be paid through a prescribed form electronically on

the common portal by the end of the quarter following the financial year. Accordingly, for the

financial year 2019-20, tax on such shortfall is to be paid by June 30, 2020.

The revenue department said it had received requests seeking details of prescribed form on

which the said tax amount has to be reported.

"The issue referred by the trade has been examined. It has been decided that Form GST DRC-

03, as already prescribed, shall be used for making the payment of such tax by

promoter/developer.

Newspaper/Online ET Realty ( online )

Date June 29, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/realtors-have-time-till-

jun-30-to-pay-gst-on-shortfall-in-input-procurement-from-dealers/76682639

"Accordingly, person required to pay tax in accordance with the said notification on the

shortfall from threshold requirement of procuring input and input services (below 80 per cent)

from registered person shall use the form DRC-03 to pay the tax electronically on the common

portal within the prescribed period," it said.

AMRG & Associates Senior Partner Rajat Mohan said real estate developers falling under the

lower tax bracket of 1 and 5 per cent are fraught with massive tax demands for which payments

need to be made in cash by June 30 without utilisation of input tax credit.

"Ailing real estate sector was expecting an extension (of due date for tax payment) on account

of COVID-19 during these testing times, wherein project receipts have already dried up,"

Mohan added.

________________________________________________________________

Double Whammy: Realtors’ GST burden to rise

Real estate companies face a double whammy post lockdown. Not only did work come to a

halt, builders will now have to pay a higher rate of goods and services tax if they haven’t

bought at least 80% of the construction material from registered dealers.

Real estate companies face a double whammy following the lockdown. Not only did work come

to a halt, builders will now have to pay a higher rate of goods and services tax if they haven’t

bought at least 80% of the construction material from registered dealers.

The Central Board of Indirect Taxes and Customs (CBIC) has mandated the payment of 18%

GST if procurement of materials from registered dealers falls short of the threshold. CBIC field

offices have been asked to inform the trade that the tax for the financial year ended March must

be paid before June 30. The requisite forms have been issued as well.

“CBIC has cleared its stand that there will be no Covid extension for any taxpayer in the real

estate sector for tax payments due to procurements from unregistered persons below an 80%

threshold,” said Rajat Mohan, senior partner at AMRG Associates.

The real estate sector has been among the hardest hit after the Covid-19 outbreak in India as the

two-month lockdown blocked the supply of construction material and millions of workers

travelled to their villages, leaving many construction projects at a standstill.

With the massive reduction in demand, realtors are certain they will not meet the norm of

buying at least 80% of the construction material from registered dealers

The rate of 18% GST on shortfall of procurement from registered dealers was decided by the

GST Council in March 2019 while offering the real estate sector revised rates of 1% GST for

construction of affordable residential apartments and 5% GST for other residential apartments,

without input tax credit.

“This tax shall be paid through a prescribed form electronically on the common portal by end of

the quarter following the financial year. Accordingly, for FY 2019-20, tax on such shortfall is to

be paid by the 30th June, 2020,” the CBIC said in its instructions issued last week.

Experts said that while the decision was taken last year, the absence of requisite forms led to the

assumption that the government would provide some relief in making the payments, in addition

to other measures already announced, especially on account of Covid-19.

The industry has demanded GST waiver for the residential segment, besides a one-time stamp

duty waiver, but these demands have not been met so far. ____________________________________________________________________________________________

Newspaper/Online Economic Times ( online )

Date June 29, 2020

Link https://economictimes.indiatimes.com/industry/services/property-/-

cstruction/double-whammy-realtors-gst-burden-to-rise/articleshow/76679333.cms

Commercial realty deal volumes sink by 94 percent in January-

May

The report said real estate activity is picking up in APAC, with mainland China, South

Korea, Taiwan and New Zealand leading the way. "As more companies and occupiers

look to release capital, they can direct investments back into their core businesses. We

expect to see more sale and leaseback opportunities come to the market," said Neil

Brookes, head of capital markets, Asia Pacific of Knight Frank.

The number of commercial investment transactions in India fell 94% year-on-year in the first

five months of 2020, the most among Asia-Pacific countries (APAC), according to a report by

property consultant Knight Frank.

The report, titled ‘Recovery from COVID-19’, said commercial investment transactions,

including investments of big funds and high net worth individuals (HNIs) in commercial

properties in APAC, fell 52% year-on-year in terms of value to $44.1 billion.

Singapore Hong Kong and China recorded an 88%, 83% and 34% decline in volume year-on-

year.

The report also said that commercial deals were postponed in Mumbai, Delhi, Bengaluru,

Jakarta, Singapore and Tokyo.

“As more companies and occupiers look to release capital, they can direct investments back into

their core businesses. We expect to see more sale and leaseback opportunities come to the

market,” said Neil Brookes, head of capital markets, Asia Pacific of Knight Frank.

The report said real estate activity is picking up in Asia-Pacific as key markets exit lockdown.

Markets that returned to “relative normality” earliest are witnessing the most activity, with

mainland China, South Korea, Taiwan and New Zealand leading the way, it said.

According to a sentiment survey by Knight Frank of brokers and researchers in 18 APAC

markets, the industrial sector remains the most resilient.

“All segments of real estate are impacted. Though at different paces for different segments, the

sector will recover in tandem with the economic revival of the country,” said Shishir Baijal,

chairman, Knight Frank India.

For corporate occupiers, large-scale expansion and relocations remain on hold.

Newspaper/Online Economic Times ( online )

Date June 29, 2020

Link

https://economictimes.indiatimes.com/industry/services/property-/-

cstruction/commercial-realty-deal-volumes-sink-by-94-percent-in-january-

may/articleshow/76679150.cms

“Despite current circumstances, there is ample capital seeking medium to long-term real estate

investment opportunities in Asia-Pacific, particularly in core, safe-haven markets like Australia

and Singapore. Accommodative monetary policies will ensure that the best-located assets with

more robust tenant profiles will continue to be in demand,” said Brookes.

The report said leasing activity fell in half of the 18 markets tracked in May while asking rents

remained relatively stable across the Asia-Pacific region.

According to the report, industrial leasing activity has picked up significantly across the region.

____________________________________________________________________________________________

MHADA cuts premium on redevelopment projects

MHADA has agreed to make applicable reduced premium rates for existing ongoing

redevelopment projects as well. The authority reduced the rate of premium for

redevelopment projects in August last year.

The Maharashtra Housing and Area Development Authority (MHADA) has announced a series

of measures to expedite the process of redevelopment of MHADA colonies across the city, as

many of them are in dilapidated condition.

MHADA has agreed to make applicable reduced premium rates for existing ongoing

redevelopment projects as well. The authority reduced the rate of premium for redevelopment

projects in August last year.

However, they were applicable only to new projects. The real estate industry had been

demanding the rates should be reduced for existing projects as well to ensure their timely

completion.

Taking into consideration longstanding demand of developers, MHADA decided to reduce the

premium for all existing projects where no-objection certificate (NOC) is yet to be issued by

MHADA and where premium is already not paid.

The developers will have to pay premium that is linked to ready reckoner rates for getting

additional FSI. Currently, this premium is between 20 per cent and 28 per cent for

redevelopment of low-income group (LIG) colonies, 45 per cent and 56 per cent for middle-

income group colonies, and 60 per cent and 71 per cent for highincome group colonies.

MHADA has also proposed to allow payment of premium in staggered manner – 20 per cent

before getting all permissions and then 80 per cent at the time of issuing of completion

certificate.

MHADA has also proposed to charge premium only on FSI that is being used for the market

sale component and make the entire FSI used for rehabilitation of existing tenement holders free

of cost.

Speaking with Mumbai Mirror, Housing Development Minister Jitendra Avhad said: “The

redevelopment of MHADA colonies is a matter of concern. Our endeavour is to provide the

Newspaper/Online ET Realty ( online )

Date June 28, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/mhada-cuts-

premium-on-redevelopment-projects/76671568

common man home at the earliest and that’s why MHADA has taken a series of decisions to

expedite the redevelopment process.”

There are 56 colonies of MHADA spread across the city and they occupy nearly 1,600 acres of

prime real estate. Around 76,000 families live in these colonies and, as most of these buildings

were built between the 1960s and 1990s, they need urgent redevelopment.

________________________________________________________________

Haryana to build 50,000 houses on municipal peripheries

Meanwhile, HSIIDC will also construct houses for the industrial units, which will be given

to them on rental basis to accommodate their workers.

The Haryana government has decided to come out with a scheme in which nearly 50,000 houses

would be built in the periphery of municipal areas in the state. As per the scheme, houses will

be given on a freehold or leasehold basis to all such people travelling every day from far-flung

places of periphery areas to their workplaces.

The scheme will be formulated with a buyback option, in which the owner at any given point of

time will have an option to sell the same house back to the government, a decision to this regard

was taken in the review meeting of 'Housing For All' department chaired by Chief

Minister Manohar Lal Khattar held here on Saturday.

While empathising with the problem of all such commuters travelling a distance of several

kilometres to reach their desired work destinations, the CM said, "The purpose of this scheme is

to provide housing facilities to all such people who presently have to travel long distances to

reach their working destination. However, with the construction of these houses they will get

housing facilities to stay nearby their work area."

In order to promote industries in Haryana, it was also decided to allow 10 per cent of Floor Area

Ratio for housing on industrial plots for entrepreneurs to set up industries in the state, so that

entrepreneurs can arrange accommodation facilities for their workers within the industry

premises, an official statement said here.

Besides this, it was further decided that a similar provision will also be made for the industrial

plots located in the industrial estates of Haryana State Industrial and Infrastructure

Development Corporation (HSIIDC) for the same purpose.

Meanwhile, HSIIDC will also construct houses for the industrial units, which will be given to

them on rental basis to accommodate their workers.

In the meeting, Haryana Chief Secretary Keshni Anand Arora, Principal Secretary to Chief

Minister Rajesh Khullar, Additional Chief Secretary of Housing Department T C Gupta were

among others present. SUN HAD

________________________________________________________________

Newspaper/Online ET Realty ( online )

Date June 28, 2020

Link https://realty.economictimes.indiatimes.com/news/residential/haryana-to-build-

50000-houses-on-municipal-peripheries/76671896

Delhi development body opens one office for conveyance deeds

Though there are three other NSKs — at Dwarka, Rohini and Laxmi Nagar — at the

moment only the one at DDA headquarters will be opened for execution of lease deed or

conveyance deed and submission of conversion application.

From Monday, Delhiites will be able to receive conveyance deeds of their properties with

the Delhi Development Authority (DDA) reopening its Nagrik Suvidha Kendra (NSK) at its

headquarters Vikas Sadan in INA.

Though there are three other NSKs — at Dwarka, Rohini and Laxmi Nagar — at the moment

only the one at DDA headquarters will be opened for execution of lease deed or conveyance

deed and submission of conversion application. Deeds for different categories of plots will be

dealt according to days to avoid crowding.

The execution date will be given only when all the formalities are completed by the allottees for

changing the deed from leasehold to freehold. At the moment, only those applicants who live in

the national capital region will be called to the NSK.

Allottees will be informed about the exact date and time of appointment and list of documents

to be brought. It is mandatory for the applicants to first install the Aarogya Setu application on

their mobile phone, wear face mask and carry an identity card. Only those people will be

allowed to enter whose status in Aarogya Setu app is “Safe or low risk” along with prescribed

affidavit and those with red or orange status will not be allowed.

Allottees will be called in time slots of 30 minutes each from 10.30am till 4.30pm and only 10

executions per day per branch will be carried out.

________________________________________________________________

Newspaper/Online ET Realty ( online )

Date June 27, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/delhi-development-

body-opens-one-office-for-conveyance-deeds/76661473

Bhopal civic body to vacate 18 buildings in 'imminent danger'

Directive have been issued in co-ordination with district administration to evict the

residents from the structures," said Choudhary. Many of these structures are in the

walled city and adjoining areas.

Around two dozen dilapidated structures have been identified in the state capital, according to

commissioner, Bhopal Municipal Corporation (BMC) KVS Choudhary, here on Saturday. "We

have identified around 18 structures that pose an imminent danger.

Directive have been issued in co-ordination with district administration to evict the residents

from the structures," said Choudhary. Many of these structures are in the walled city and

adjoining areas.

Ahead of the monsoon, a list of about 450 structures had been compiled by the civic body.

"Many of the identified structures are under litigation. We have to move in accordance with

court directives," he added. The list is prepared each year before the monsoon.

However, seldom has BMC acted. Recent action under the threat to public safety provision has

been for two heritage structures, Shaukat Mahal and Zeenat Manzil. Front facade of both the

structures were demolished after BMC cited threat to collapse of the structure.

Almost four years on Shaukat Mahal and two years on since demolision, Zeenat Mahal have not

been repaired. More than Rs 20 crore has been allocated for the measure, but the private

contractor under smart city development has not been able to initiate repair.

Meanwhile, after heavy rains on Friday, in Kolar area a boundary wall of a colony adjacent to

slums had collapsed. Slum dwellers in the area protested over the incident on Saturday,

demanding the wall not be reconstructed by the private colony.

According to BMC officials many of the colonies in the area are developed on green belt. NGT

directive directed state government to clear the illegal constructions around 2015.

________________________________________________________________

Newspaper/Online ET Realty ( online )

Date June 28, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/bhopal-civic-body-to-

vacate-18-buildings-in-imminent-danger/76671710

Chandigarh civic body earns Rs 16 crore from property tax

Out of this money, the authority has earned about Rs 8.07 crore from the commercial

segment and rest from the residential category.

The municipal corporation has earned about Rs 16 crore annual property tax from both

commercial and residential segments till Friday.

Out of this money, the authority has earned about Rs 8.07 crore from the commercial segment

and rest from the residential category.

Since the civic body has stopped taking payment through banks (practice till last year) to avoid

confusion in receipts, all payment has come through the e-Sampark centers in different sectors

or the MC's online portal for filing tax.

An MC official said: “Of our income target of Rs 48 crore for this financial year, we have

achieved a significant part, so far. The deadline for paying tax without penalty is June 31, so we

hope to get an optimum amount without having to serve any default notice."

The civic body has also received orders from the UT local bodies department to waive the

commercial property tax of 13 villages transferred to the MC last year. By doing this move, the

MC has lost Rs 76.11 lakh of tax in this financial year, a big amount for the cash-strapped

authority.

The MC has 1.10-lakh payers of property tax, of which 85,000-odd are in the residential

category, while almost 26,000 are in the commercial segment.

The property owners in both commercial and residential segments will be able to file their tax

with rebate till July 31 for the current financial year. During this period, the tax rebate is 20%

on residential property and 10% on commercial property. Thereafter defaulters will have to pay

25% penalty and 12% interest.

________________________________________________________________

Newspaper/Online ET Realty ( online )

Date June 27, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/chandigarh-civic-

body-earns-rs-16-crore-from-property-tax/76661728

Ahmedabad civic body offers 30% property tax rebate

Announcing this, AMC standing committee chairman Amul Bhatt said the state

government has announced the Atma Nirbhar package and a 20% rebate would be given

to the 4.75 lakh commercial properties in the city.

The Ahmedabad Municipal Corporation announced that business establishments in the city will

get a 30% rebate in property tax. This includes the 20% rebate under the Atma Nirbhar package

of the state government and a 10% advance tax rebate.

Announcing this, AMC standing committee chairman Amul Bhatt said the state government has

announced the Atma Nirbhar package and a 20% rebate would be given to the 4.75 lakh

commercial properties in the city.

Apart from this, Bhatt said that a 10% rebate will be given to those property owners who pay

their advance tax by June 30.

He said that this would mean that commercial properties will get a 30% rebate if they pay

property tax by June 30. Those who pay their property tax between August 1 and August 31

will get only a 20% rebate. Bhatt said that the AMC will extend a total rebate of Rs 180 crore.

________________________________________________________________

Newspaper/Online ET Realty ( online )

Date June 27, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/ahmedabad-civic-

body-offers-30-property-tax-rebate/76661427

Housing societies cannot deny entry to people: Pune collector

Such orders could only be given by government authorities. He also clarified societies

could not demand medical certificates from residents returning to their homes.

Some societies in the city have been denying entry to residents returning from different parts of

the country or telling them to be in home quarantine or produce medical certificates despite the

district collector issuing orders stating that those making their own rules would face action.

“Housing societies should not make people’s lives difficult unnecessarily. Societies should take

proper sanitization precautions, encourage mask usage and conduct checks at the gate, but they

cannot deny entry to residents returning from other cities or to house helps and other service

providers. However, those coming from containment zones should be strictly prohibited from

entering the society,” Naval Kishore Ram, the Pune district collector, said.

He said housing societies could not pass orders on home quarantining residents returning from

other parts of the country. Such orders could only be given by government authorities. He also

clarified societies could not demand medical certificates from residents returning to their

homes. Parth Gupta, Kalyaninagar resident, said, “My mother wanted to come from Hyderabad,

but society representatives said I will need to take their permission.”

Suhas Patwardhan, the chairman of Pune District Co-Operative Housing Federation, said, “The

association received a couple of queries last week from representatives of housing societies

inquiring about procedure of allowing residents returning from other districts.”

An official from the office of the district deputy registrar for cooperative housing societies said

they recently received complaints about societies not allowing domestic helps. “The societies

were reprimanded and told they could not make their own rules,” official said.

The department of cooperation, marketing and textiles in a recent order directed housing

societies in the state to not make their own rules and to follow the government guidelines.

________________________________________________________________

Newspaper/Online ET Realty ( online )

Date June 28, 2020

Link https://realty.economictimes.indiatimes.com/news/residential/housing-societies-

cannot-deny-entry-to-people-pune-collector/76671918