CREDAI Conclave 2013, New Delhi : Indian real estate industry has a tax burden of 30% to 40%.

Confederation of Real Estate Developers’ Associations of India (CREDAI) organized the  CREDAI CONCLAVE 2013  with a theme, Housing the Game Changer -  Leading to Double-Digit GDP Growth, at New Delhi..

Mr. C. Shekar Reddy, President, CREDAI National told  “The major concerns of the real estate developers / promoters in  India are -  rising price of plot , labour & input costs, High  Tax, High cost of funding, delays in NOCs & approvals besides the outdated   Floor Space Index Norms .Need to restructure the approach to help the countries real estate sector contribute more significantly to the Nations Economy.”

On the issue of Taxation, Mr. C. Shekar Reddy addressed, that the Indian real estate industry has a tax burden of 30% to 40%. This has to come down to less than 15%. The industry is paralysed by multiple taxation resulting in cost escalation and misery for the sector.

the National Habitat Policy suggests that the total registration charges has to be a maximum of 3% and urged the government to consider it as a mandatory reform of RAY and advice the states to implement to bring down the tax on housing. On the issue of Service Tax he said that the tax has become very complicated and burdening the prospective purchaser. To the extent of sales deed consideration of Sale deed , service tax should not be charged as registration charges are paid. Only on Works Contract service tax should be charged to avoid double taxation.

Speaking on RERA Bill, Mr Reddy said, “ RERA bill  is another Act going to be targeted against the developer. Other stake holders such as urban local boards, electricity authorities, fire departments are not part of the proposed RERA, thereby they are not answerable for their delays but the developer has to bear the brunt. If the with proposed stringent provisions, if not modified, will increase the cost of the housing by about 30%. 

In conclusion Mr.Reddy said that with these measures industry will create huge supply of homes and create a competitive market there-by bring down home prices.

CREDAI - National Secretariat

703, Ansal Bhawan,

16, Kasturba Gandhi Marg,

New Delhi-110 001.

Tel:(011) 43126262/ 43126200

Fax:+91 11 43126211

Email:info@credai.org

For more information please contact

Nishanth M: 98840 70861

Konnections

E - mail: nishanth@konnections.co.in

www.konnections.co.in

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