There is good news for people living in Navi Mumbai. The proposed Trans-harbour from Sewri in Mumbai to Chirle.http://upload.wikimedia.org/wikipedia/commons/c/ce/Mumbai_trans_Harbor_link.jpg) in Navi Mumbai has received approval from the Environment Ministry. This bridge (6 lane expressway) will span 22 kms and reduce the journey time from Navi Mumbai to Sewri to a mere 15 mins. It will also reduce the pressure on the current bridge in Vashi. Travel time to the upcoming airport will also be reduced. The earlier approval of the Environment ministry had lapsed due to delay in the bidding process, which has now prolonged its construction time. Environmental activists had objected to the bridge saying that no public hearings for the fresh application and that the bridge was not allowed as per the new CRZ notification of 2011. The bridge is likely to be completed in the coming decade by 2017.
In a major breakthrough for the conveyance problem of housing societies, the govt has now stepped in and made it clear that any builder who refuses to give conveyance to the flat buyers or co-op housing societies within 4 months of handover of flats to the buyers, the local deputy registrars office will give a deemed conveyance certificate automatically after being approached by the flat buyers. This will bring to end the long and sordid chapter in indian housing. Builders use the conveyance ploy to avoid handover of land and building to housing societies and continue to fleece buyers in the name of NOC. After being approached by flat buyers ,the deputy registrar will call the builder and flat purchasers/societies. If it is found that the conveyance has not been given even after 4 months of handover of flats, the registrar will issue a deemed conveyance certificate. Let us hope that this scheme is not just on paper but actually implemented in true spirit. The person responsible for the same in Navi Mumbai is Mr.Deshmukh (JT Registrar of Co operative societies at Konkan Bhavan at CBD Belapur).Housing societies no longer have to submit 21 documents which were required earlier. Now, only the relevant documents have to be filed before the registrar. He will pass an order within 6 months of receiving the application in the set format.
If the builders were expecting a revival in the market ahead of the festive season,here is a reality check…. Real estate sales have dropped by 5% and lease rental deals have fallen by 17% in the past 3 months. Month to month reduction is 5% in sale deals and 2% in year to year period. Lease agreements are down by 17% month to month and 10% in year to year period.
The Maharashtra Govt has decided to collect VAT (Value added tax) from home owners who bought their under-construction homes directly from builders between June 2006 and March 2010.The value of VAT has been decided as 5% of the total agreement value. This amount will have to be paid before August 31st.
Eg: A buyer who bought a flat worth 2 crores from a builder between June 2006 and March 2010,will now have to pay 10 lakhs as tax before 31st August 2012.
This tax is not valid for resold apartments (flats bought from a previous owner).
Flats sold after April 2010 will be charged only 1% VAT and 3.75% Service Tax.
Note : There is No Service Tax or VAT levied on completed projects with OC (Occupancy Certificate).
Flats with more than 2000 sq ft or 1 crore price will be charged 4.5% Service tax along with 1% VAT.
Maximum amount of flats were sold between 2006 and 2010,when prices were at an all time high. Builders have been assigned the task to collect the money from the buyers. Failure to do so will invite penalty.
A sales tax officer said that during the recent raids on builders, it was noticed that the builders had collected this money from the buyers but had not deposited it with the sales tax dept. The department expects to collect 800-900 crores by this.
Further clarifications on VAT on flat purchase: VAT is liable on the total cost of construction of a flat or the agreement value,whichever is lower. So basically,if you purchased a 1000 sq ft flat and the construction cost is 1200 per sq ft,then the VAT you have to pay is 5% of Rs 12,00,000 i.e. Rs 60,000.
There is a further update on VAT on house purchases. The govt is in consultation with various depts to come to a conclusion regarding the formula for calculating the VAT. Before any decision is arrived at, the builders should not harass buyers into coughing up 5% vat. In absence of any conclusion by the committee, the developers can charge between 0.5% and 3% VAT if at all necessary.
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The illegally redeveloped building in sector 9,Vashi is yet to be demolished. It helps to remind our readers that this 12 storied building in sector 9 was constructed on the spot of a CIDCO constructed society which was \’redeveloped\’. The commencement certificated for the building was revoked and a 1 month notice was served to the builder DG Shah. He was found to have submitted forged papers and had not got the required clearances from CIDCO. The CIDCO building was the Ashirwad JN type building. A total of 32 families were living in this complex before demolition. The builder had carried out more than 36-40 sq ft of illegal construction on each floor. The developer has apparently approached the court.
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