budget

Hotel Leelaventure Postpones Launch of its Mid-Scale Hotel Brand

by Paul Joseph June 30, 2011

Hotel Leelaventure, which operates luxury hotels and resorts under The Leela brand, has put the launch of its proposed mid-scale hotel brand on the backburner. The mid-scale brand Leela Gardens was to be positioned as a three-star property. “We had planned to go to tier II cities with this product. We will go for it after a few years. Right now we plan to reduce our capital expenditure and consolidate,” Vivek Nair, vice-chairman and MD, Hotel Leelaventure, told Financial Chronicle. In April 2011, Capt CP Krishnan Nair, chairman of Hotel Leelaventure, had expressed the desire to enter the mid-market segment by setting up 30-40 room hotels in pilgrimage spots. Capt Nair had then said that the brainchild behind the budget brand was his granddaughter, Samyukta Nair, who was pursuing a hotel management degree in Lausanne, Switzerland. “She will also be heading this subsidiary of The Leela Hotels that will manage this venture,” he had said in April 2011. This is the second time since 2007 that the launch of the budget brand is being deferred.

Tagged as: backburner, brainchild, budget, enter-the-mid, granddaughter, krishnan-nair, leela-hotels, real estate developers, subsidiary

0 comments Read the full article →

Infra and Realty Sector Expecting Stimulus from Budget 2011

by Paul Joseph February 25, 2011 Uncategorized

Over the past few years, we have witnessed an increasing focus on infrastructure development of the country. For India, as a growing economy, infrastructure plays a critical role in the economic development. There is significant challenge that the infrastructure sector encounters in terms of the huge capital investment and long gestation period of the projects. More so, for India, environmental concerns, land acquisition issues, frivolous litigation in terms of PILs add as roadblocks to the infrastructure growth in the country. In addition with a regime of high interest rates and high input costs (be it crude oil, cement, steel, etc), infrastructure growth is bound to suffer. While some of these factors are not capable of being addressed through the annual budget, it can definitely support in improving the eco system by providing tax reforms and directional policy measures. The infrastructure industry is hoping for Government support to make the industry more entrepreneur and investor friendly this budget. Another sector which is equally important for India and which will be driven by infrastructure growth is real estate. India is perceived to be one of the emerging markets for real estate investment. Mumbai, New Delhi and Bangalore have taken the 3rd, 5th and 10th spot respectively among the top investment cities. These figures signify that there are huge investment opportunities in the real estate sector of India. Both these sectors are hoping that the Budget provides a fillip to their growth.

Tagged as: budget, country, delhi, gurgaon, mumbai, property prices, real estate, real estate developers, real estate india

0 comments Read the full article →

tips to buy a property in india

by Paul Joseph August 18, 2010

India property and real estate market rapidly growing since form 2005 to till date. According to a survey by real estate market experts, Indian realty market holds the 9th position among the retail markets of the world, and is growing with a constant rate of 30% per annum as well. So if you want to invest in Indian properties or want to buy your dream home in the country then it’s really a very good time to invest in. As Indian economy is growing each day and it is safe to invest in Indian real estate market. All the major cities of India means all metro cities like Delhi and NCR (i.e. Gurgaon, Noida, Ghaziabad), Mumbai, Chennai, Bangalore these all has open market and good opportunities for investors and for general customers as well. There are all types of residency like Low-rise, Hi-rise apartments, penthouses, bungalows, villas and all developed and launched by almost all top builders like Emaar MGF, DLF, Unitech, Supertech, and many more are available. However, before buying a property in India , you need to check out these essential points: Location: If you are buying a property then the foremost thing that you should think about is the location. Means there must be a very good transportation form school, hospital, shopping mall and all basic need; also a good view outside the home can also inspire and give comfort to a family. Find out the details: when you have chosen a location then after that you must need to do some research like what you want your home to look like, many rooms and what size it must be. Financial considerations: Before investing you must make sure that the property is suitable for you as well as the builder. Builder in the sense they must be a repudiated builder and has delivered some project then it is too good. After that it is very important that Budget range including mortgage. There must not be any hidden costs with the price that they are giving to you. Taxes: Be aware of all sorts of taxes you need to pay. Many first time home buyers are not informed that they have to pay some other taxes and it’s too late when they realize that their living cost is higher than expected and they are spending more because of these taxes. Property Consultant: After these all survey you must contact to a property consultant and broker. If you have any problem after all you study you must contact them, because they are much aware form all above things, about developer, price on the preferred location and many more. They can give you more and better option that you have chosen. But they must be professional must not a road side broker. Can’t find a reputed company? Go to invesinnest.com to find the right kind of commercial or residential property that will meet all your specifications and they will give you best services. You can search for the available properties from their database by entering the type, location, and other attributes. They will guide you to find the ideal property and make sure that it fits into your budget

Tagged as: budget, country, india property, indian, location, retail

0 comments Read the full article →

Realty Prices To Further Shoot Up

by Paul Joseph July 9, 2010

n It is very likely that the Real Estate prices in the country will shoot up further with the Finance Ministry’s decision of not withdrawing 2.5% service tax. This move was proposed by the Urban Development Ministry in the budget of FY10-11. The budget had earlier proposed this tax on all under-construction projects. And it is common knowledge that eventually the customers will have to bear the burden and not the developers. The declination came as no less than a shock to the Urban Development Ministry. Its Minister Mr. S Jaipal Reddy argued with the Finance Minister Mr. Pranab Mukherjee in the favor of the move in April this year but it could yield no results evidently. The ultimate sufferers will be the Indian middle class who already has to bear the burden of inflation in almost all other spheres but also dreams of owing a home of their own!

Tagged as: budget, customers, developers, finance, inflation, property news

0 comments Read the full article →

Reconsider service tax on housing complexes- Reddy Requests Mukherjee

by Paul Joseph April 15, 2010

Union urban development ministry has urged the finance ministry to take a re-look at the service tax imposed on housing complexes under construction as it feels that the levy will push housing out of the common man’s reach and hurt the real estate sector , which is yet to recover from the global economic slowdown. Urban development minister S Jaipal Reddy, who met finance minister Pranab Mukherjee on Thursday, is believed to have argued for keeping real estate out of the service tax net as it may shoot up housing prices hitting the common man badly. Sources said the UD minister told the FM that the real estate sector in the country is yet to to come out of the impact of global recession and this is not the right time to burden it with another tax. Realty players and many industry chambers have been urging the government to withdraw the service tax imposed on the housing sector (at 3.3%, with abatement), as it would discourage home buyers. It would also hit the sector which is recuperating from the impact of economic slowdown. “The urban development ministry feels the proposal of service tax made in the Budget needs review. I am recommending the review of the proposal by the finance ministry,” UD minister had said in past at an industry chamber’s meet. Mukherjee had in Budget 2010-11 brought development of real estate complexes under the ambit of service tax from April 1, 2010 unless the entire consideration for the property is paid after completion of construction. “In the construction of complex services, it is being provided that unless the entire consideration for the property is paid after the completion of construction (i.e. after receipt of completion certificate from the competent authority), the activity of construction would be deemed to be a taxable service,” the Budget proposal said.

Tagged as: budget, country, government, property, real estate, real estate india

0 comments Read the full article →

CREDAI Submits Memorandum Demanding Removal of Service Tax on Housing Complex under Construction

by Paul Joseph April 14, 2010

Real estate industry body Confederation of Real Estate Developers’ Associations of India (CREDAI) has submitted a memorandum to the Finance Ministry, asking the government to remove service tax on housing complexes under construction. “We have put forth our concerns and recommendations and also discussed the probable impact of the provisions with the Ministry. We are hopeful that the government will understand the implications and not burden the consumer,” CREDAI chairman Kumar Gera said in a statement. CREDAI prepared a list of recommendations in consultations with its knowledge partner KPMG. The suggestions were submitted to Finance Ministry member (Budget) Y G Parande. Gera said imposition of service tax on real estate development could lead to an overall negative sentiment, although the amount collected through the provision may be small, and may result in a net loss of revenue. Finance minister Pranab Mukherjee in the Budget for 2010-11 brought development of real estate complexes under the ambit of service tax, unless the entire consideration for the property is paid after completion of construction. Finance Ministry officials later clarified that service tax would be imposed on 33 per cent of total selling price, which, the real estate players said, effectively means about 3.5 per cent cost escalation for the buyers. “The CREDAI delegation explained that the proposal of the government to levy service tax on construction of complex was an impractical proposal as this would lead to government giving preference to the secondary market of completed projects,” the statement said. It also questioned bringing in the service tax at a time when Goods & Services Tax (GST) is expected to be introduced in another 10-12 months. Last month CREDAI had said it would consider taking the government to the court if its demand for excluding land cost from the proposed service tax on housing complexes under construction is not met. “There is an option of approaching the court and CREDAI will decide to go to court, if at least land cost is not excluded from the ambit of service tax… Land is not at all a service,” CREDAI NCR president Pradeep Jain had said. Realty developers pay different types of taxes under various heads, including stamp duty on land cost, and addition of one more tax will only put extra burden on consumers.

Tagged as: budget, consumer, india, ministry, real estate

0 comments Read the full article →

Buy your dream home now

by Paul Joseph April 9, 2010

Buying a house it somewhat like a gamble. Should you buy before prices start to rise or should you wait a little longer to see if the prices will drop even further? Hence knowing the market scenario is important to make a decision. Recent scenario Real estate market is seeing action once again in certain pockets. The damage done by the economic slump on princes has almost been undone in several pockets of Mumbai , Bangalore and NCR. The real estate industry is picking up, but slowly and unevenly. While NCR has seen the highest number of project bookings in the middle and high income market. Mumbai witnessed slowdown in volumes after sharp price appreciation. Some real estate companies reported good absorption in volumes in Bangalore revival in IT industry and salary hike for most employees. With improvement in demand, real estate prices in the country have also started moving up. The prices of both commercial and residential properties have gone up significantly and they are close to their peaks. In Mumbai, the prices are back to the older highs of 2007-08. For property buyers is this the time to buy a dream home? In our opinion we feel yes, because: RBI’s move to control inflation: Recently in order to control inflation and anchor inflationary expectations, RBI raised the repo rate by 25 bps to 5% and reverse repo rate by 25 bps to 3.5% Further, RBI also indicated there could be further rises in the days to come. RBI governor Subbarao mentioned that the central bank would continue its movement towards exiting its accommodative policy, implying further rises in indicative rates. While the hike in key policy rates announced by the Reserve Bank of India is unlikely to have an immediate impact on demand for homes, real estate major, the management of DLF feels any further increase in interest rates by the Reserve Bank in the forthcoming annual monetary policy review could put upward pressure on prices. The higher interest rate regime will soon be a reality, thus bringing an end to the honeymoon period for the home loan buyers. Teaser loans: Teaser rates were introduced by banks last year to boost demand for housing finance in a slowing economy. State Bank of India [ Get Quote ] launched in January 2009, teaser loans where the home loans were on offer at interest rates between 8.5% and 11% depending on the amount and the tenor. While the teaser loans did aid the buyers, with interest rates bound to go up; teaser loans could then become uneconomical for banks. If interest rates rise too much, EMIs will climb, squeezing borrowers further. Also following the RBI’s warnings, most banks have already changed course with almost all of them ending their teaser loan programs, with the exception of SBI bank, which has also extended it only for a month more. Budget measures: The rate hike comes as a second blow to individuals who were waiting to buy a house post the budget. As we are aware that most of the measures announced in the budget were not in favour of real estate developers. Buying a house is expected to get expensive as the developers may pass on the higher burden to the buyers. Industry sources predict that the property prices are expected to go up 12% from its present levels by the end of this year due to the rising costs of inputs like cement and steel. The cement prices have risen by Rs 20 per bag; steel prices have also increased by around Rs 1,000 per tonne in recent times on the back of excise duty hike on the commodity. To add to this the budget announcement on service tax would play a detrimental factor. This is likely to be imposed from June (Mumbai is likely to see additional 1% VAT). The home buyers will now be required to pay a 10% service tax on 33% of their EMI amount for an under-construction apartment. This will increase the prices by 3.5%. Also there is a 10% service tax on the full amount paid towards preferential location which has been classified as a service in this budget. Thus considering all these factors, we think that it would be a good time to buy a house. As we know, we can never time the markets. Only relatively we know whether a market was at the bottom or not. Further, we can never be aware of the bottom while one is in it. Price is not so critical for a long term view (minimum 5 years) and especially if it is for self occupation. With tax benefits, it may not be a bad decision to buy your dream home if your financial affairs are in order. Source:http://business.rediff.com/report/2010/apr/07/perfin-buy-your-dream-home-now.htm Filed under: Bangalore , Mumbai , Noida Tagged: Bangalore , Mumbai , NCR , Real estate in india

Tagged as: bangalore, budget, city-trends, country, financial, reserve, reserve-bank

0 comments Read the full article →

Tax Official Looking To Collect Service Tax from Real Estate Companies

by Paul Joseph April 7, 2010

The Budget proposal to levy service tax on real estate sector may have upset home buyers, but it has given a reason good enough for the tax officials to investigate and collect chargeable service taxes from the real estate companies that have not been paying the exchequer. The service tax commissionerate, service tax arm of the Central Board of Excise & Customs (CBEC), has been dealing with the issue of non-payment of service tax by the builders, thereby blocking taxes worth crores. The latest was a search on a global builder (Samiah International Builders) where the department got over Rs 70 lakh cash as the surrender amount along with information that reveals non-payment of a huge sum as service tax , a tax official told FE. The service tax department has been dealing with the complexity in taxation of services provided by builders but no decision was taken on the matter in any case. However, after the Budget proposal in February this year that talked about inclusion of the services provided by builders in the service tax list, tax officials are also feeling sure before pursuing a case for non-payment of tax, the official said. The Budget proposal would become a reality after the finance bill becomes a law and the notifications in relation to the tax proposals are issued. The government has the power to decide on the applicability of the rule from a future date or the same day. The tax works out to about 3-4%of the total cost of an apartment, as it is applicable only on the value of services. So roughly, if a buyer books a flat of Rs 20 lakh, he will be required to shell out an additional Rs 60,000-80,000 on account of the service tax component. There has been lot of pressure from the industry to roll back the proposal to levy service tax as the burden would be passed on to the consumer.

Tagged as: budget, central, department, finance, power, real estate, real estate india

0 comments Read the full article →

CREDAI May Knock Court’s Door if Service Tax on Land is not Removed

by Paul Joseph March 28, 2010

The Confederation of Real Estate Developers’ Associations of India (Credai) today said it would consider taking the government to court if its demand for excluding land cost from the proposed service tax on housing complexes under construction was not met. “There is an option of approaching the court and Credai will decide to go to court, if at least land cost is not excluded from the ambit of service tax. Land is not at all a service,” Credai NCR President Pradeep Jain said. Jain, who is also the chairman of realty major Parsvnath, said the industry body would convene a national meeting to discuss the option of using legal machinery if its request was not met when the Finance Bill was accepted. Realty developers already pay different types of taxes under various heads, including stamp duty on land cost and addition of one more tax would only put extra burden on consumers, he added. “We had a meeting with the Service Tax Department and submitted our post-Budget memorandum to officials. Now, we are seeking a meeting with the finance minister or his officials for the same,” he said. Finance Minister Pranab Mukherjee, in the Budget for 2010-11, brought development of real estate complexes under the ambit of service tax, unless the entire consideration for the property was paid after completion of construction. Finance ministry officials later clarified that the service tax would be imposed on 33 per cent of the total selling price, which, the real estate players said, effectively means about 3.5 per cent cost escalation for the buyers. When asked if there was any possibility of revoking the taxation proposal, Central Board of Direct Taxes member Durgesh Shankar said: “We can’t say anything now as constant discussions take place for various proposals, but there are never closed minds.” He said all proposals were made after due deliberations and anticipating repercussions also, if any. Last week, Urban Development Minister Jaipal Reddy had said his ministry would approach the finance ministry within a few days for a review of the proposed service tax on housing complexes under construction as it felt the levy would hurt the sector, which is yet to recover from the recession. “The urban development ministry feels the proposal of service tax made in the Budget needs review. I am recommending the review of the proposal by the finance ministry,” he had said. K P Singh, chairman of the country’s largest realty firm, DLF, had also asked not to impose service tax at this time as the sector was not in a “correct shape”.

Tagged as: budget, chairman, country, government, india, real estate, sector, time, urban

0 comments Read the full article →

Assocham Asks Govt to Withdraw Service Tax on Real Estate Sector

by Paul Joseph March 17, 2010

Industry body Assocham has asked the government to roll back the service tax proposed on real estate developers at the time of construction, as it would increase the tax burden on home buyers and impact the recovery of the sector. The government, in the Budget, said that real estate complexes will attract service tax, unless the entire consideration for the property is paid after the construction is complete. In its post Budget memorandum to the Finance Ministry, Assocham had said that the real estate sector was gradually returning to normalcy and imposition of service tax on immovable property would increase the cost of housing by four per cent. “In addition, it would also make the entire housing facility costlier to end-consumer and will be contrary to government’s aim of providing affordable housing,” it said.

Tagged as: budget, construction, government, property, real estate, sector, time

0 comments Read the full article →