#WeeklyNewsRoundup: Haryana Fixes VAT at 1% For Projects Built Till 2013
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Weekly News Roundup is PropGuide's selection of the week's top stories from the real estate sector.
In a big relief for home buyers, the Haryana government has agreed to fix the value added tax (VAT) at one per cent for real estate projects built until March 31, 2014. The decision will not only make life easier for buyers but also prompt developers to deposit pending VAT charges. A large number of developers have challenged the Haryana Excise and Taxation Department after they were issued notices over VAT payment.
The Securities and Exchange Board of India (Sebi) has finally granted three companies — IRB Infrastructure, GMR and MEP Infrastructure — the licence to launch infrastructure investment trusts (InvITs). With a view to help infra developers mop up funds for long-term projects in a more transparent manner, the markets watchdog had introduced InvITs in 2014.
With the Union Cabinet approving the establishment of GST (Goods and Services Tax) Council, India became one step closer to roll out the new regime. The council, which will decide on the rate, exemptions, threshold and relevant legislation by November 22, will be chaired by Finance Minister Arun Jaitley.
The Uttar Pradesh government gave legal sanction to societies to collect maintenance charges through the pre-paid electric meters with a cap on the limit up to which these collections could be made. After a revision in the Uttar Pradesh Apartment (Promotion of Construction, Ownership and Maintenance) (Amendment) Act, 2015, developers are duty-bound to permit the formation of RWAs and hand over the interest-free maintenance security to the RWA, failing which they will be jailed.
With a view to boost the real estate sector in Punjab, the state Cabinet has decided to abolish the stamp duty of two per cent levied on immovable property while awarding the power of attorney. Irrespective of the market value, the stamp duty would now be a nominal Rs 1,000 on the General Power of Attorney and Rs 500 on Special Power of Attorney.