Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: VAT Audit :: ACCOUNTING STANDARDS :: cpt :: due date for vat payment :: empanelment :: list of goods taxed at 4% :: VAT RATES :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
« News Headlines »
 CBDT releases Income Tax Return statistics for last two fiscals
 CBDT issues second round of Certificates of Appreciation to tax payers for their contribution towards Nation building
 FinMin looks at cut in corporation tax
 Draft Rules for prescribing the method of valuation of fair market value in respect of the trust or the institution-Chapter XII-EB of the Income-tax Act, 1961- reg.
 India is moving towards a flawed GST
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers

Govt mulls Re 1/sq ft cess on commercial properties
November, 17th 2006

The government is likely to levy a cess of Re 1 per square feet on commercial properties across the nation. The finance ministry has suggested that the state government must charge this amount while approving designs of commercial properties. As a result, a prospective mall developer, constructing a 5,00,000 sqft of built-up area, will have to shell out an additional Rs 5 lakh as cess.

The finance ministrys proposal is to plough back the cess money into the countrys infrastructure development. It suggested that the fund may be used for meeting viability gap funding (VGF) requirements for core sector projects. The Centre offers VGF up to 40% for infrastructure projects such as roads, highways and metro rail transit systems under the public-private participation (PPP) model. The rest is financed by state governments and private parties.

The government intends to charge this cess on the private commercial property developers so that more funds could be pooled in VGF for infrastructure projects, said a senior government official.

This is a welcome move, provided the authorities use part of the proceeds coming from the surcharge in developing infrastructure around the malls catchment areas. A lot many commercial activities are happening in tier II and III cities in the NCR, such as Kundli, Sohna and Sonepat, which is in dire need of good infrastructure, said TDI Malls managing director Kamal Taneja.

The real estate developers feel that ultimately the charge will have to be borne by the consumers. Any such surcharge or tax is usually passed on to the consumer. Even in this case, developers will pass on the cess to retailers, who would be the end users, said Ashish Gupta, vice-chairman, Aerens Goldsouk.

According to government sources, the additional revenue will be used in create urban infrastructure around the proposed commercial developments. Arvind Singhal, chairman, KSA Technopak, however, said that the cess amount should be increased.

An additional surcharge of just Re 1 per sqft will not do much good. At best, this will net one-time additional revenue of Rs 15-20 crore, which does not suffice the requirement for urban development.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multi-level Marketing MLM India Affiliate Marketing Affiliate Marketing Software MLM Software MLM Solutions Multi level marketing solutions MLM Servi

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions