Tag Archives: memorandum

Protest March took place in Ghaziabad against Increased House Tax

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Dealers of Ghaziabad city came together and presented a protest march for opposition of the proposed increase in house tax. Mahanagar Udyog Vyapar Mandal was the organizer of this march. The participants gave a huge dharna in front of the gate of municipal office.

Dr HS Saharia was given a written memorandum by these traders. According to this memorandum, the taxation policies should fall into one of the two categories only; either in the residential or in commercial one. However, if the government wants to impose higher taxes, then they should do so in a proper order. It must remain in limits.

The president of the district Vyapar Mandal, Gopi Chand said that government should realize that traders are already going through tough phase of inflation. Higher taxation would make their survival tougher.

The main participants of this rally were Ram Kishor Aggarwal, Sunil Goel, Rajiv Aggarwal, Dhanesh Singhal, Shiv Shankar Rathi, Rajdev Tyagi, Shanti Swarup Sharma, Pawan Sharma and Ashok Chawla.

Memorandum to Govt. from CREDAI to Take Off Service Tax

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Ministère des Finances QuébecApril 14, 2010

A memorandum has been submitted to the Finance Ministry concerned with the appeal for removal of service tax on housing complexes under construction by CREDAI, Confederation of Real Estate Developers’ Associations of India which is a real estate industry body.

The Chairman of CREDAI, Kumar Gera stated that they have put forth their concerns and suggestions and also discussed the probable impact of the provisions with the Ministry. An understanding of the problem and required corrective steps will be taken is a hope from the government. The list of recommendations was built in consultations with KPMG, its knowledge partner and was submitted to Y G Parande, a Finance Ministry Member (Budget).

According to Gera, the money collected through the imposition of service tax on real estate development will not be big enough; rather it would majorly lead an overall negative sentiment and a net loss of revenue.

In budget 2010, it was announced by Mr. Pranab Mukherjee, the Finance Minister that a tax would be imposed on the housing complexes under construction but later it was clarified by the officials that service tax would be imposed on 33 per cent of total selling price. This was interpreted by the real estate players as a 3.5% price escalation for the buyers.

According to CREDAI, it was an impractical proposal to levy service tax on construction of complex since would lead to government giving preference to the secondary market of completed projects.