Service Tax & VAT in Real Estate!

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Project delays and cancellations are not the only issues that buyers of under-construction properties in India have to worry about. Their mathematical genius would also be put to test at each stage of tax calculations.  It has to be noted that you have to pay the service tax and the value-added tax (VAT) if you are investing in an under-construction property.

If you are buying a home in any city of Karnataka and want to know all about KVAT, you may be in for a fix and will have to use a lot of your imagination to decide which “schedule” the home-buying process falls into. It is all open to interpretation, and even chartered accountants may fail to point in one direction.

For example, your developer may ask you to pay VAT at 5.5 per cent under Schedule III, because material used in construction (bricks, sand, metal, etc.) are kept under this category. However, as the term construction is not clearly mentioned anywhere, you might be charged VAT at 14.5 per cent. This rate applies to things not covered under any schedule. What else? An end note adds that you will have to pay VAT of 14 per cent for “all other works contracts not specified in any of the above categories”. The developer may have his pick unless you carefully read the purchase agreement and ask for a correction.

It has to be noted that VAT is a multi-point levy, charged for any value that is added to a project. In case of real estate, developers have to pay this levy to the state government for the manufacturing part of the work. While the value of the land is excluded, services tax is levied on labour and other services.

Service tax, on the other hand, is a central levy and is uniform across the country and under the composite scheme, your developer will charge you service tax at 3.09 per cent of the total contract value. This means that service tax will be charged at 15 per cent of the total contract value, and if the service costs of the unit is kept at 25 per cent of the total value, you will have to pay the tax at 3.09 per cent.

Essentials for your new home

 

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Find the right decor– choose a decor that blends in the shades of your walls to maintain a healthy symmetry of design in your home.

Interior design– the right interior design will help you portray the best stories of your life

Modular Kitchen- create mouth-watering dishes with a well-equipped kitchen

Comfortable furniture– Don’t forget to add comfy cushions to your to-buy-list, or you will miss it when find it missing after a hard day’s work.

Add pictures-  Relive the memories of your past by showcasing some family pictures.

Tea tables and easy chairs-  the presence of a tea table or an easy chair will encourage you to enjoy a cup of coffee amidst the sight of a pleasant sunset.

 Old fashioned dim lighting– the addition of bell shaped lights with yellow bulbs will set the tone to a soothing ambience.    

“Because every home is a canvas where priceless memories are relived”

10 Ways in which RERA has protected the interest of homebuyers:

RERA-Act

1. Property developer is liable for compensating the homebuyer for any loss or damage caused due to incorrect/ false statement made in the prospectus or notice of advertisement.

2. Property developer is prohibited from taking more than 10 per cent as advance from the buyers without entering into a written agreement for sale.

3. Interest payable by the property developer and the buyers in case of default to be specifically mentioned in the agreement for sale. Also, the interest rate is to be as per rates prescribed which is being benchmarked based on SBI prime lending rate.

4. Any structural alteration/ addition to the sanctioned plan to be made only after obtaining a written consent of at least 2/3rd of the buyers (other than the developer).

5. Transfer of real estate projects to third parties would now require written consent of 2/3rd of the buyers and RERA.

6. Any failure on the part of the property developer to hand over the possession of the property in accordance with the agreement for sale would empower the buyers, at their will, to withdraw from the project and demand refund of the amount paid along with prescribed interest.

7. Developer will now be responsible for fixing structural defects in the property for five years after transferring the property to the buyers. Also, such repair work needs to be completed in a prompt manner within 30 days of receipt of written complaint from the buyers.

8. Any loss caused due to defective title would have to be compensated by the developer.

9. Real estate agents will also be required to be registered under RERA.

10. Non-compliance of provisions of RERA will attract a penalty or/ and imprisonment up to a maximum of three years.

The intent of RERA is loud and clear – satisfaction of homebuyers and providing them value for their money.  The only show stopper is that the State Governments have been given the right to frame rules under RERA and notifying the RERA authorities for the respective states.  The State Governments have been extremely slow in this aspect.

Durga Petals: A Symbol of Your Achievement

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“Achievements First”! The defining motto that oversees everything that we do and defines everything that we are. Achievements can take many forms and complexities. It could be something as simple as starting your first exercise routine to getting a promotion at work. Regardless of the type of achievement, the inert nature of achievements is that it acts as a confidence booster and provides a learning experience no matter how simple it is. The very fabric of achievements is that they act as success enablers in our life. They are with us all the time, sitting on our shoulders as crown jewels signifying and reminding us that it’s not the last and there are miles to go.

You’re a successful professional, a winner by your own right. You’ve earned a good place in your life. All you need now is an address to match. Fostering Urban Achievers, Durga Petals is the celebration of your achievements, spread over 5 sprawling acres, finished with 8 towers. Petals are the wings to your achievements, your zeal to achieve more and an address that truly mirrors the winner in you. Situated at Marathahalli Outer Ring Road, laced with 40+ amenities, the apartment complex has up to 70 percent open spaces and is finished with various zones catering to everyone’s needs. The 2.5 and 3 BHK apartments are a true reflection of your aspirations. Designed for comfort and crafted for quality, the towering apartment complex is the first digital healthcare enabled residential complex.

With 504 success stories to the house, Petals has got all the ingredients for a bestseller compilation. Stepping away from adjustments, the residential apartment complex is, by all means, an address to your achievements. At Durga Petals we don’t just present you with keys to your home, but rather a ‘Lifetime Achievement’ award as a celebration of the milestones achieved by you.

For more information on investing in Bangalore’s booming Outer Ring Road, visit us at our Experience Centre in Doddenakundi or click on www.durgapetals.in

Digital Health Enabled Apartment Complex: A Win-Win Deal For Everyone

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Finding a good apartment is difficult, but narrowing down on your dream home that is a perfectly suited environment for you and your family could be a hard task to accomplish. It’s imperative that the apartment complex is built to suit all your needs, especially healthcare needs which is the life line of your family.

Healthcare has been focussing on the administrative efficiency and the affordability of treatment for patients. wing to the need for a disruptive healthcare system, Durga’s first Digital Health Enabled Residential complex, Durga Petals provides an unprecedented view into an individual’s personal health choices and physiologic response. This care-enhancing feedback system enables patients to better manage their health, allowing for a more effective collaboration with the clinicians, all while enabling a new information-based innovation.

What Apple did with music, and Amazon did with books, Durga Petals does with the healthcare system. It establishes a highly collaborative, creative space designed to bring together unparalleled network of clinical healthcare professionals working together to make meaningful change in health through scalable and innovative technology.

Situated on the Equator of the IT corridor, Durga Petals is one of a kind residential complex. Enabled with telemedicine facilities on the go, the feature is poised to have a ground-breaking impact on the life quality of the residents regardless of their age group. Let’s understand how.

(Hypothetical situation)

Sameer Arora (39), Vice-President (Flipkart) lives with his wife Bhavna (33), son Abish (7) and father Mohan Arora (71) in a 3 BHK apartment at Durga Petals. He has migraine issues and his father is diabetic.

Relevance of Durga Petals’ Digital Healthcare System for:

Working Professionals: Owing to Sameer’s migraine issues, his physician recommends a diet and an exercise regime, but his busy life and his lack of time to schedule his appointments with his physician deteriorates his health. With the help of Petals Telemedicine Centre, his schedules are set by the telemedicine provider, medicines reach to his doorstep on time, and he gets timely notifications to get his check-ups done regularly.

Children: Abish, son of Sameer gets injured while playing with his friends one fine day, and requires first-aid assistance. The residents report the injury to the Telemedicine Centre, which arranges for medicines from a nearby medical shop prescribed by the doctors digitally, and supplies it to their home to help Abish recover sooner.

Durga Petals aims to bring technology to the rescue, scale healthcare, and improve the relationships between the triangle of professionals, institutional facilities and patients to help them bring a movement of change.

Durga Petals: – Nurturing Dreams with Passion

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The untarnished nature of a petal represents a strong symbol of positivity. Spreading the essence of calm and serenity, they reflect beauty that transcends from an ordinary life. At Durga Petals, the walls are built to set you free, to nurture your growth and the surroundings you live in. A project created with the mindset of not just delivering you an apartment, but a home, a reflection of your dreams. In there, lies the fruit of realisation of aspiring for a home that’s built to revolve around you and your needs.

Located at the centre of the IT corridor, the project is amidst close proximity of IT parks, Malls, Restaurants, International Schools and Natural spaces. With over 70 percent open spaces, the project is crafted after you. Designed to cater to all your needs and at the same time to provide you with an apartment that is an exemplification of a legacy and years of industry experience in providing top class projects; the end objective, is to offer ‘People’s Projects’.

Durga Petals was the recipient of some of the prestigious awards last year, “Emerging Developer of The Year” and the “Most Admired Upcoming Luxury Project” at the Global Real Estate Brands Awards 2016 by Deccan Chronicle, PNB Housing and Silicon India Real Estate Awards Bangalore 2016.  Recognizing the quality, and the dedication that goes behind the construction of Durga Petals, a mix of timely construction, best in class amenities and the intricacy that goes behind outlining every need of yours.

Spread over 5 sprawling acres, built across 8 towers and over 40+ amenities, Durga Petals is a hall-mark of luxury and comfort, built on an understanding that your home is a long-time investment. The aluminium form work technology enables durability at the same time delivering your dream house on time.  Carefully thought out amenities like day care centre, work from home office cubicles, games room and much more is specifically designed to meet the needs of all groups from kids to senior citizens. Designed around your conception of a dream home, these amenities are built to provide you with uninterrupted recreational experience regardless of the age group. Providing you dream homes, Durga Petals is a project Crafted for You, Built for the Future.

visit us at our Experience Centre in Doddenakundi or click on www.durgapetals.in

Interesting Interest Rates

State Bank of India (SBI), the country’s largest money lender welcomed the new year by slashing the marginal cost of funds based lending (MCLR) by a whopping 0.96% for one year. MCLR is the benchmark rate to which all home loans are linked. These rates have been cheapest for the past six years; this was further welcomed by other banks slashing their MCLR rates too.

The reduction in the MCLR rates simply means that the home loans would now be available at a cheaper rate since most of the home loans are locked in at a one-year MCLR. The older loans can avail this benefit post one-year completion of their MCLR period.

This move has ignited the spark in the real estate sector, which has seen a steady rise in demand from fresh buyers. The industry witnessed massive struggle to cope up the with the unaffordable prices which were a directly proportional to the poor demand from the consumer’s end. With the slashed interest rates the market looks up.

Demand for both realty and office properties are bound to witness a steady rise as the demand is going to drive two-fold. The housing sector is expected to see more traction as the central bank has reduced the risk weight on the housing segment, which means lenders would have to keep aside a lesser capital at the time of borrowing.

The reduced interest has simplified the finance process associated with lending for borrowers, which leaves the borrowers on a high note. New borrowers will also see an increase in the eligibility with a 50-basis point drop in home loans. The reduced rates will also result in lowering of equated-monthly installments.

Overall the slashed in interest rates would garner a lot more demand in the housing sector as the interest rates transcend into an interested rate for the consumer.

For more information on investing in Bangalore’s booming Outer Ring Road, visit us at our Experience Centre in Doddenakundi or click on www.durgapetals.in

A Perspective on modern housing trends

There are a million types of people in this world, we have rich, the poor and the ones who aspire to be rich. Now, why am I talking about the riches & poor??? Well, the reason is Housing, its a perspective about housing through my eyes. There comes a lot of reasons to have a home, one might have it for the purpose of shelter another for maintaining his standard..we have housing from huts to bungalows.The Joy of having own house is considered to be one of the best feelings I feel !, A big fat one with all beautifully constructed, such a personal achievement!

One might have his own concepts about housing, few might go for independent houses and the rest might opt for apartments/flats. It’s a long way until you get your home ready, right from the internet to the realtor and to the final settlement, one must take utmost care in choosing the right realtor to make the entire flow hassle free. There are a lot of instances where people get frauded by realtors or have their whole project badly baffled. So the first and foremost importance have to be given in choosing the right person to rely upon.

That satisfaction after completing your first home is always priceless! it’s such a proud moment to have an investment for a lifetime. Present times has taken us to the world where individual choices and attention to detail are given the top priority. We now have interior designers to tailor according to our needs, I personally feel this is such a great change which happened in the housing evolution..we then had houses being constructed according to the engineer but now we do get the option to customize everything right from the floor to the roof.

Getting an individual house nearby your workplace may not be the easiest thing one can think of, this being one of the reasons people prefer investing in apartments/flats. They are more preferred due to the convenience and safety they offer. It’s easy to own, easy on pockets and also offers a lot of other amenities. The only tough part is to find the right apartment in the right locality and the rest is completely being taken care by the builder, also a lot of financial support from the banks linked to the builder is an added advantage as well, now this makes apartments a perfect choice for the corporates as it’s an easy process and hold good value for money.

If you are reading this from Bangalore or you are planning to settle down in Bangalore, why don’t just spend a while looking at the latest offering from Durga projects?

Check out the latest offering from Durga properties: Durga Petals.
Here are the Testimonials by the buyers 

Bangalore homes are evolving with time

Dugra Petals - IT Corridor

In the midst of all hustle and bustle, we found ourselves a peaceful abode of Durga Petals. The place we proudly call our home. Earlier we were so occupied with traveling from one end of the city to the other that we never thought of purchasing a home. The moment we got to know about Durga Petals and found out that it is the cynosure of the IT corridor, we did not think twice before buying.
Earlier, our days used to be long, hectic and full of travel and traffic. It’s like we were always rushing, we had no family time at all.
Our office is in Bagmane Tech Park which is just adjacent to Durga Petals and it takes us just 10 mins to walk to our office, a healthy solution for us. We now have enough time for ourselves in the morning, to read the newspaper, grab a good breakfast and even pack a healthy lunch for the kids. The evenings are spent exploring malls and restaurants in and around Marathahalli. The apartment has a good connectivity to many Indian and International Schools and bus and train stations.
As the apartment is built on the Outer Ring Road (ORR) prominent localities like Domlur, Electronic city, Whitefield, Hennur, Sarjapur and other major IT hubs are at an arm’s reach.
Besides connectivity as a major component, Durga Petals homes are spacious, full of light, ventilation and a breath-taking panoramic view of the city from the balcony.
We are extremely happy and overwhelmed with our new home and we are sure we made the right decision.