NAREDCO flags off workshop in Mumbai NAREDCO, workshop, Tax and Accounting Development, Indian Real Estate Sector

NAREDCO flags off workshop in Mumbai

NAREDCO, workshop, Tax and Accounting Development, Indian Real Estate Sector

On ‘Tax and Accounting Development of India’s Real Estate Sector’

Mumbai  June 11th 2013: The National Real Estate Development Council of India, formed under the Aegis of Ministry of Housing & Urban Poverty Alleviation, Government of India, is set to change the dormant real estate market in Maharashtra, with announcements of some encouraging developments and policies that will set the real estate sector rolling. To begin with NAREDCO has flagged of its first initiative here in Mumbai today, a workshop on ‘Tax and Accounting Development of India’s Real Estate Sector ’in partnership with Grant Thornton, LLP a  leading assurance, tax and advisory firm in the field of taxation and accounting.

Addressed by eminent speakers such as Mr. Sunil Mantri, Vice President, NAREDCO, Mr. Suneel Sehgal, DDG, NAREDCO, Mr. Khushroo Panthaky and Mr. Neeraj Sharma, Partner, Walker Chandiok & Co, and Mr. Vishwas Panjiar, Director, Walker Chandiok & Co and Mr. Amit Sarkar, Director, Grant Thornton, LLP the educative workshop threw light on issues related to the taxation policies undertaken at the Union Budget 2013-14, and reviewed the same under the umbrella of Direct and indirect tax laws.

The workshop also focused on topics such as Re-introduction of withholding implications where property in 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 in subject to tax, Introduction of TDS on transaction of immovable properties value in excess of Rs 50 lakhs, along with the revised guideline note on accounting of real estate transactions to streamline the accounting practices followed by real estate companies.

Speaking on the workshop Mr. Sunil Mantri, VP, NAREDCO, said “NAREDCO is pleased to organize its 1st programme in Mumbai today, the event focused on analysis and insight into the long term implications of important provisions of Finance Bill 2013, relating to real estate. The objective of budget 2013-14 is to reduce evasion of tax, however the bigger question is to have a tax policy which encourages compliance and at the same time the rate of taxation is reasonable keeping in view the direct and indirect linkages of real estate in India’s economy. There is a definite need to revisit the taxation policy in totality and this is what the workshop aims to discuss.”

He further added that “The time for elections is approaching and organizations of real estate should present a road map of taxation to major political parties. In the States, the abnormally high and regressive stamp duty on registration of properties needs to be reduced keeping in view the substantial increase in property values in the urban centres. Through this workshop we wish to request the senior most taxation professionals and CFO’S from the large number of real estate companies to suggest measures aimed at fair taxation which encourages compliance and leads to growth of the real estate industry in the country. NAREDCO shall appropriately follow up these with the Govt’s in the Centre and States”.

Mr Suneel Sehgal, DDG, NAREDCO, also added that “The recent reduction of interest rates by Reserve Bank of India has eased some pressure on liquidity which shall help real estate sector as well. While self regulation will be the key for better governance and sustainability, realization of the policy frame work with respect to land ownership approvals and licenses etc, shall give a boost to reforms facilitate sustainable growth in real estate”.

 He further mentioned “Affordable housing received supply side initiatives in recent years through incentivized funding and investment based weighted deductions. This may not have been able to make affordable housing available, which is why now some demand side initiatives have been introduced in the Budget 2013 -14,such as setting up of urban housing fund and enhanced deduction of borrowing cost of houses below 40 lakhs, the workshop also focused on these initiatives and its long term impact”

The workshop saw an over whelming participation from the who’s who of the real estate sector including developers, Director and Finance/ Taxation Heads of Real Estate Companies, Housing Finance Companies and other  stakeholders.