Blog Feed

The Real Estate (Regulation and Development) Act, 2016 is an Act of the parliament of India which seeks to protect home-buyers as well as help boost investments in the real estate industry. The Act establishes Real Estate Regulatory Authority (RERA) in each state for regulation of the real estate sector and also acts as an adjudicating body for speedy dispute resolution. The bill was passed by the Rajya sabha on 10 March 2016 and by the Lok sabha on 15 March 2016. The Act came into force on 1 May 2016 with 59 of 92 sections notified. Remaining provisions came into force on 1 May 2017.The Central and state governments are liable to notify the Rules under the Act within a statutory period of six months

• 

Project Registration with RERA

The first rule is about project registration with RERA. It is compulsory to register with RERA for the real estate project with a land area greater than 500 square meters or 8 apartments before launch. This rule applies to residential as well as commercial projects.

You will be able to check registration detail on the RERA website of respective states. A project builder has to provide details such as sanction plan, project layout, project location, carpet area and facility provided while registering on the website.

Advance Payment

As per RERA rule, promoter or builder cannot demand advance payment greater than 10% of the estimated cost of a project. In case a higher amount is required as advance formal agreement with the buyer is required by the developer.

Escrow Account

RERA rule says that it is mandatory for the developer or transfer 70% of the amount received from the customers to separate account called an escrow account. This amount can be used only after getting the approval of the project. This is to safeguard money given by the customer and assure that the amount can not be used for other projects.

Penalty against failure of possession

RERA rule says that builder or developer needs to give possession of the property in a timely manner as per the commitment. In case builder fails to complete the project and give possession on time, the builder has to pay monthly interest on the amount received, till possession is given.

Updates:

Developers and builders must update about construction status quarterly. The update should be on vital information such as –

• Approval taken by the government and pending list.
• Completion schedule update and status.
• Number of unit sold and types

Change in Sanctioned Plan

Any alteration or change in the sanctioned plan can be done after getting approval from the customer. If alternation is affecting the entire project, the builder has to take approval from at least 2/3rd of the total buyers of the project.

RERA Complaint

In case of any complaints or grievances, the property buyer can file a complaint with RERA. The complaint needs to be filed at the respective RERA state website. In case the buyer is not satisfied with the resolution provided by RERA, they can approach the Appellate Tribunal and High court or Supreme Court.

Conclusion –

I hope the information given about RERA rules will help you while buying a real estate property. If you have any queries about RERA rules please write to us.

Recently Central Board of Indirect Taxes & Customs (CBIC) issued a clarification on GST implication on Salaries paid to key management personnel and employees. In this clarification, CBIC clarifies that GST is not applicable to the salary paid to the employees because it is under schedule III of the CGST Act, 2017. As per this entry, GST is not applicable to any service provided to the employee to the employer. Before this clarification, many confusions had been arisen on the applicability of GST because of news published in Media on 14.11.2019 under the head “Tax department wants to impose 18% GST on CXO salaries.”

• 

• Employees working at corporate office providing services to corporate office have employer-employee relationship only at such corporate offices.
• Offices other than corporate offices are distinct offices employer-employee and employees working in corporate offices have no employer-employee relationship with other offices.
• Such services shall be treated as taxable supplies as per section 7 read with Entry 2 of Schedule-I of CGST Act, 2017.
• Valuation of such employee’s services to other distinct offices shall be done as per section 15(4) of CGST Act, 2017 and Rule 28 of CGST Rules, 2017 applicable to supplies between distinct persons.
• In cross charge, there is an element of service rendered by a person who cross charges his other units even though they belong to the same legal entity.

As per the above ruling, GST is applicable inter-branch salaries paid to CEOs or employees when the company cross charged this amount to another branch (distinct person). On the above issues, CBIC clarifies that GST charged on the prices/charges by any supplier of goods or services from his consumers does comprise all costs including cost of raw material, capital goods, input services and employee costs, etc. But this does not mean that salaries paid to the employees by the employer are being taxed under GST.

Conclusion:

As per the press release issued by the CBIC, GST is not applicable employer-employee salaries paid to CEO’s and employees arenot required to be cross charged between distinct persons.

What is Sovereign Gold Bond?

Sovereign gold bonds were introduced by the Government of India in 2015 under the Gold Monetization Scheme, to enable investors to invest in an asset class which is a substitute for physical gold.

1. Who are eligible to buy sovereign gold bonds?

Any resident individual including HUFs, trusts, universities and charitable trusts can buy sovereign gold bonds. This bond can also be purchased by a guardian or parent on behalf of a minor. But, a non-resident or ordinarily non-resident of India cannot buy a sovereign gold bond.

However, if a resident individual who bought SGBs, who has now become NRI can hold them till the maturity of the bond but cannot repatriate the maturity amount. He/she cannot even trade SGB’s on stock exchange.

2. Denomination of gold bond

Each investment will be denominated in multiples of gram or grams with a basic unit of 1 gram at least to be purchased in a single purchase i.e. minimum investment. It means if you want to invest Rs. 10,000 and the rate of gold on purchase date is Rs. 4000 per gram. So your investment will be denominated in 2.5 grams.

3. Issue Price

The price of the bond will be fixed in Indian rupees on the basis of the average closing rate of the last 3 working days of the week preceding the subscription period of gold having 999 purity (24 caret) published by India Bullion and Jewelers Association.

The issue price of the gold bonds will be less by Rs. 50 per gram for those who subscribe for it online and pay through digital mode.

4. Interest rate

The investors will be paid Interest on the amount of initial investment at the rate notified by RBI for a particular tranche at the time of its launch and is payable semi-annually. Till date interest is near to 2.5% p.a.

5. Redemption

Redemption price shall be fixed in Indian Rupees and the redemption price shall be based on a simple average of the closing price of gold of 999 purity of the previous 3 business days from the date of repayment, published by the India Bullion and Jewelers Association Limited.

6. Listed on the stock exchange

These bonds can be held in Demat form and the government has enabled trading of gold bonds on the stock exchanges i.e. NSE and BSE. This feature is given to enable easy trading of bonds and one can buy bonds even after the subscription period is closed.

How to buy Sovereign Gold Bonds?

Whenever the government of India announces a series of bonds, they specify the dates of subscription, date of issuance of bonds and the amount of purchase per gram. A subscriber can go via physical mode or online mode for subscription of SGBs.

1. Physical Mode – To invest in gold bonds, you can fill in the application form which is provided by issuing banks or from designated post offices You can also download the application form from the website of the Reserve Bank of India.

Scheduled Commercial Banks (excluding RRBs, Small Finance Banks and Payment Banks), designated Post Offices (as may be notified), Stock Holding Corporation of India Ltd (SHCIL) and recognized stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Ltd. are authorized to receive applications for the Bonds either directly or through agents.

2. Online Mode – To invest in bonds using online mode, one can use their intermediaries/broker’s platform or bank platform. There will be a discount of Rs. 50 per gram if you purchase via online mode and paying through digital mode.

Every applicant must provide their PAN number issued by the Income Tax Department. Without a PAN, one cannot apply for investing in gold bonds.

This is an example post, originally published as part of Blogging University. Enroll in one of our ten programs, and start your blog right.

You’re going to publish a post today. Don’t worry about how your blog looks. Don’t worry if you haven’t given it a name yet, or you’re feeling overwhelmed. Just click the “New Post” button, and tell us why you’re here.

Why do this?

• Because it gives new readers context. What are you about? Why should they read your blog?
• Because it will help you focus you own ideas about your blog and what you’d like to do with it.

The post can be short or long, a personal intro to your life or a bloggy mission statement, a manifesto for the future or a simple outline of your the types of things you hope to publish.

To help you get started, here are a few questions:

• Why are you blogging publicly, rather than keeping a personal journal?
• What topics do you think you’ll write about?
• Who would you love to connect with via your blog?
• If you blog successfully throughout the next year, what would you hope to have accomplished?

You’re not locked into any of this; one of the wonderful things about blogs is how they constantly evolve as we learn, grow, and interact with one another — but it’s good to know where and why you started, and articulating your goals may just give you a few other post ideas.

Can’t think how to get started? Just write the first thing that pops into your head. Anne Lamott, author of a book on writing we love, says that you need to give yourself permission to write a “crappy first draft”. Anne makes a great point — just start writing, and worry about editing it later.

When you’re ready to publish, give your post three to five tags that describe your blog’s focus — writing, photography, fiction, parenting, food, cars, movies, sports, whatever. These tags will help others who care about your topics find you in the Reader. Make sure one of the tags is “zerotohero,” so other new bloggers can find you, too.