Wednesday, March 29, 2017

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EMIs of under-construction, leased houses to attract GST from July 1

29 Mar 2017 | 1:33 AM

NEW DELHI:Come July 1 and leasing of land, renting of buildings as well as EMIs paid for purchase of under-construction houses will start attracting the Goods and Services Tax (GST).

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New Delhi, March 28 

Come July 1 and leasing of land, renting of buildings as well as EMIs paid for purchase of under-construction houses will start attracting the Goods and Services Tax (GST).

Sale of land and buildings will be, however, out of the purview of GST, the new indirect tax regime. Such transactions will continue to attract the stamp duty, according to the legislations Finance Minister Arun Jaitley introduced in the Lok Sabha yesterday for approval. Electricity has also been kept out of the GST ambit.

The GST, which the government intends to roll out from July 1, will subsume central excise, service tax and state VAT among other indirect levies on manufactured goods and services.

The Central GST (CGST) Bill states that any lease, tenancy, easement, licence to occupy land will be considered as supply of service.

Also, any lease or letting out of the building, including a commercial, industrial or residential complex for business or commerce, either wholly or partly, is a supply of services as per the CGST Bill.

The GST Bills provide that sale of land and, sale of building except the sale of under-construction building will neither be treated as a supply of goods nor a supply of services. Thus GST can’t be levied in those supplies.

‘Goods’ in earlier drafts of the Bills were defined as every kind of movable property other than money and securities but includes actionable claim. ‘Services’ were defined as anything other than goods. It was thought that GST may be levied on supply of immovable property such as land or building apart from levy of stamp duty. But the Bills presented in Parliament have now clarified this position.

Tax experts said that currently service tax is levied on rents paid for commercial and industrial units, although it is exempt for residential units.

Deloitte Haskins Sells LLP Senior Director MS Mani said: “While service tax is applicable at present on sale of under-construction apartments, it is levied on a lower value as abatement allowed. The abatement is ostensibly to take care of the value of the land involved in the construction of apartments”.

He said the GST Rules, which will come up for discussion in the Council meeting on March 31, would help ascertain whether a lower rate of GST is proposed for such transactions or whether a similar abatement procedure would be prescribed.

Experts said service tax is currently levied on payments made for under-construction residential houses after providing abatement, which brings down the effective rate from 18% to around 6%. — PTI 

Airtel sells stake in Bharti Infratel

29 Mar 2017 | 1:33 AM

NEW DELHI: Bharti Airtel said on Tuesday it has successfully completed the secondary sale of over 190 million shares of its subsidiary Bharti Infratel to a consortium of funds advised by KKR and Canada Pension Plan Investment Board for over Rs 6,193.9 crore.

Samsung to sell refurbished Note 7 phones

29 Mar 2017 | 1:33 AM

SEOUL:Samsung Electronics announced on Tuesday it will sell refurbished Galaxy Note 7 smartphones, after production was suspended last year due to battery issues that caused fires and explosions.

Nissan, Renault bet big on India

29 Mar 2017 | 1:33 AM

CHANDIGARH:Betting big on growing SUV market in India, Japanese auto major Nissan and alliance partner Renault India will launch new SUVs in the domestic market later this year.

Khattar lays stone of Panasonic plant

29 Mar 2017 | 1:33 AM

JHAJJAR:Haryana Chief Minister Manohar Lal Khattar today laid the foundation stone of Panasonic India’s first refrigerator plant in Jhajjar’s Dadri Toa village today.

Jan Dhan cost to SBI: Rs 775 cr

29 Mar 2017 | 1:33 AM

NEW DELHI: The total cost of operation of Jan Dhan accounts by SBI is Rs 774.86 crore, Parliament was informed today.

SC verdict on BS-III emission row today

29 Mar 2017 | 1:33 AM

NEW DELHI:The Supreme Court will tomorrow pronounce its verdict on Environment Pollution Control Authority’s (EPCA) plea seeking ban on sale and registration of BS-III emission norm-complaint vehicles after April 1.

Use of Bitcoin illegal: Govt

29 Mar 2017 | 1:33 AM

NEW DELHI:The government today said use of virtual currencies like Bitcoins is not authorised by RBI and could result in breach of anti-money laundering provisions.

No revision of diesel prices since Jan 15, transporters, farmers question govt

29 Mar 2017 | 1:33 AM

CHANDIGARH:While revision in diesel prices is considered critical for various sectors of the economy, particularly road transport and agriculture, the non-revision of diesel price for the four successive fortnights, specifically on March 15, has left the transporters and farmers shell-shocked.

Banks looking for lower savings account interest rates

28 Mar 2017 | 2:04 PM

MUMBAI: Falling growth in loans is making banks to look at the possibility of lowering the interest rates on savings bank accounts so as to improve their pre-provision operating profits, investment banking firm Jefferies said.

NHPC pays highest-ever interim dividend of  Rs 1,882 croreThe Tribune Corporate Broadband

NHPC pays highest-ever interim dividend of Rs 1,882 crore

28 Mar 2017 | 12:54 AM

NHPC Limited has paid an interim dividend of Rs 1,402.21 crore to Government of India for the financial year 2016-17.


RIL dips 3%, m-cap plunges by Rs 12,488 crore

28 Mar 2017 | 12:54 AM

New Delhi: Shares of Reliance Industries (RIL) ended 3% lower on Monday, wiping out Rs 12,488 crore from its market valuation, after SEBI banned the company and 12 others from equity derivatives trading for one year.

No negative effect of DeMo on exports, says minister

28 Mar 2017 | 12:54 AM

NEW DELHI: The government today underlined that demonetisation had no negative impact on exports.

Telcos asked to carry out Aadhaar-based verification

28 Mar 2017 | 12:54 AM

NEW DELHI: The telecom operators have been given one year by the Department of Telecom (DoT) to carry out the Aadhaar-based verification of all existing subscribers of mobile services.

Tax trial run in May, June

28 Mar 2017 | 12:54 AM

NEW DELHI: With the legislative end of the GST rollout nearing completion, there will be a two-month trial run in May and June on the GST IT network that will enable transactions to check the authenticity and credibility of the system before it becomes operational from the tentatively scheduled date or go live date of July 1.

FM tables GST draft Bills in Parliament

28 Mar 2017 | 12:54 AM

NEW DELHI: Breaking the jinx to roll out the proposed pan-India unified structure for levy of indirect taxes, Union Finance Minister Arun Jaitley today introduced four Bills aimed at rolling out Goods and Services Tax (GST) in the Lok Sabha amid protest from the Opposition on the ground that the matter was not listed in the House’ business agenda for the day.

Nod to 101 cold chains to cut wastage of fruits, veggies

Nod to 101 cold chains to cut wastage of fruits, veggies

28 Mar 2017 | 12:54 AM

NEW DELHI: Encouraged by the interest shown by over 150 big and small players such as GMR, Big Basket, Haldiram and Amul, the government today sanctioned 101 new cold chain projects which will infuse a little over Rs 2,200 crore of private investment, with the government subsidy component around Rs 833 crore.

Honda faces long haul to recoup jet costs

Honda faces long haul to recoup jet costs

27 Mar 2017 | 10:18 AM

TOKYO: After three decades building an airplane from scratch, Michimasa Fujino, 56, chief engineer of the Hondajet, might have to reach a ripe old age to see Honda Motor Co's pet aviation project recoup its development costs.

Invest prudently to secure your child’s future

Invest prudently to secure your child’s future

27 Mar 2017 | 1:56 AM

Children are the biggest project and responsibility we grownups undertake. And in most circumstances, we stretch more than what our limits prescribe.

Rs 5,000 relief on preventive healthcareTax advice: SC Vasudeva

Rs 5,000 relief on preventive healthcare

27 Mar 2017 | 1:56 AM

As per Section 80D of the Income Tax Act, 1961, a deduction up to Rs 5,000 for expenditure on a preventive health check-up is allowed.

Is Aadhaar taking over as your primary identity proof?AADHAAR

Is Aadhaar taking over as your primary identity proof?

27 Mar 2017 | 1:56 AM

The government has proposed to make it mandatory to quote Aadhaar number while filing income tax returns and applying for PAN. The move has evoked mixed responses across the industry.

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