The recent reduction of interest rate by Reserve Bank of India has eased some pressure on liquidity which will help real estate sector as well. While self-regulation will be the key for better governance and sustainability, rationalization of the policy framework with respect to land ownership, approvals and licenses, etc. shall give a boost to reforms and facilitate sustainable growth in real estate.
Affordable housing had received supply-side incentive in recent years through incentivised funding and investment based weighted deductions. This may not have been enough to make affordable housing available, which is why now some demand side incentives have been introduced in the Budget 2013, such as setting up of urban housing fund and enhanced deduction of borrowing cost of houses below Rs 40 lakhs.
Minister of Finance introduced the Finance Bill 2013 which is seen as a mixed bag for the real estate in India. A bird’s eye view relating to provisions under the umbrella of Direct and Indirect tax laws can be:
Re-introduction of withholding implications where property is transferred
Concept of transfer of immovable property at Fair Value also made applicable in case of stock transfers
Transfer of Immovable property without adequate consideration is subject to tax
Introduction of TDS on transactions of immovable properties value in excess of Rs. 50 lakh
Some pertinent issues in income tax
Challenges in indirect tax – lessor abatement in service tax on residential units having carpet area above 2,000 sq.ft.
Revised guidance note on accounting of real estate transactions
Institute of Chartered Accountants of India (“ICAI”) last year issued Revised Guidance Note on Accounting for real estate. This was a welcome change, since this sector has gone through significant evolution in last 5-6 years and the existing guidance seemed primitive in light of the changes that this sector has undergone in all these years.
The objective of this change was to streamline the accounting practices being followed by the various companies (including listed companies) and ensure some level of consistency so that the financial statements and other financial information generated by these companies can be meaningfully compared and analysed by the various stakeholders (investors, banks, creditors, government agencies).
The experts conducting the Workshop are:
Neeraj Sharma, Partner, Walker Chandiok & Co.
Vishwas Panjiar, Director, Walker Chandiok & Co.
Amit Sarkar, Director, Grant Thornton India LLP
Our experts will discuss these developments and share insights on the impact of these changes on the financial reporting and compliances for the companies in real estate sector.
Who should attend?
The Workshop shall be very useful for Developers, Directors and Finance/Taxation Heads of real estate companies and other stakeholders.
The registration fee is Rs. 4500/- per participant (inclusive of Service Tax).The registration form duly completed along with the cheque/DD in favour of ‘National Real Estate Development Council’ be sent to NAREDCO, First Floor, 8, Community Centre, East of Kailash, New Delhi- 110065 latest by Wednesday, 5 June 2013. The Workshop will be followed by Lunch.
Should you need any assistance please write to email@example.com or call on 22 66262600.