Business & Economy
Government will rein
in real estate sector
What is India News Service,
Thursday, 10 February 2005, 1700 hrs IST
Clearly concerned over the large incidence of tax evasion in the real estate sector, the government is considering
rationalising the existing regime by removing the “distortions” and replacing it with a “fair and incentivised system.”
“The present distortionary tax governing the real estate industry in India encourages the industry to remain outside the organised sector. This, in turn, has led to a situation where the real estate sector has become a major breeding ground for tax evasion and criminal activities,” sources said.
Sources said that rationalising the present tax regime would result in large revenue and economic benefits besides expanding the tax base significantly. “This sector must form part of the tax base for any value added tax (Vat),” the sources said.
Presently, a multiple taxation regime, both at the Central and the state level, govern the real estate sector. Sources said that presently most inputs used in the real estate industry are liable to Cenvat, which is not matched by corresponding benefit for input credit. This is because the output is exempt from Cenvat or service tax.
“This is a major anomaly which many in the real estate sector have taken undue advantage of. It has also resulted in a flourishing invoice trading industry encouraging fraudulent claims of input credit,” sources said.
Cabinet clears way for Iran gas pipeline:
After years of impasse, India has formally invited Pakistan for a dialogue on using its territory as transit for sourcing natural gas from Iran through a $4.5 billion gas pipeline.
No downward revision of oil prices, says Aiyar:
A downward revision of domestic oil prices is not on the cards as the Union Petroleum Minister, Mani Shankar Aiyar, today declared that there is no immediate proposal to "defreeze" prices.
34 years to India for US-1950: World Bank economist:
Despite being ‘star performer’ in terms of economic growth, India will take at least another 34 years to achieve the 1950s' GDP level of the United States, a senior World Bank economist said.
Manikchand dropped as Filmfare awards sponsor:
The owner of Filmfare magazine Bennett Coleman and Co Ltd has decided to discontinue the sponsorship of Dhariwal Industries Ltd for the annual Filmfare Awards this year..
Himachal Annual Plan fixed at Rs 1,600 crore:
The Annual Plan for 2005-06 for Himachal Pradesh was today fixed at Rs 1,600 crore. This was decided at meeting between state Chief Minister Virbhadra Singh and Deputy Chairperson of Planning Commission Montek Singh Ahluwalia here.
FDI in retail and real estate
soon, says Kamal Nath: The Government is likely to come out with a policy on opening up the retail and real estate sectors for foreign direct investment within the next two months.
'Pay service tax and sleep well':
That will be the slogan of the Central Excise Department which will launch searches if credible evidence of service tax evasion was found by the service providers, said K. P. Singh, Director General of ...
UCO Bank to up retail lending: V. Sridar, Chairman and Managing Director of UCO Bank,
said his top priority would be to increase lending under retail banking and mid-market segment through various schemes like UCO Trade, UCO Rent and UCO Shelter.
MCA launches e-governance initiative: Accessing even financial and other information on closely-held companies would just be a mouse click away once the ambitious project of the Ministry of Company Affairs (MCA) to turn paperless through its e-governance initiative.
Business papers
Business Standard
Economic Times
Business Line
Financial Express
| 
