Companies & Sectors
Residential market sees marginal sales, inventory remains high in March quarter
According to Liases Foras, during the March quarter, new launches in affordable segment has kept residential market prices in check. However, the inventory level remains unchanged at 39 months 
 
Residential market in six major cities witnessed marginal growth in sales as well as in inventory. While the average prices in these six cities remained stable in March 2015 quarter compared with previous quarter, Mumbai Metropolitan Region (MMR) saw price decline mainly due to new launches in affordable segment, says non-brokerage real estate research firm Liases Foras.
 
 
According to the latest quarterly report by Liases Foras, overall sales across Bengaluru, Chennai, Hyderabad, Pune, MMR and National Capital Region (NCR) inched by 2%. Sales in Bangalore and MMR surge by 31% and 25% respectively, while NCR and Hyderabad witnessed decline in sales by 27% and 16%, respectively from previous quarter.  
 
During the March 2015 quarter, new supply increased by 21% from previous quarter with 36% of the new supply coming in the cost range of Rs50 lakh to Rs1 crore, followed by the cost range of Rs25 lakh to Rs50 lakh at 29%, Liases Foras said.
 
 
According to the report, 2BHK constitute 36% of new supply followed by 3BHK with 35%. MRR’s average price of new supply is lower by 31% compare to existing supply. Chennai, Bangalore, Pune and NCR show decrease in new launch prices  compare to existing supply prices by 16%, 10%, 6% and 4% respectively, while Hyderabad shows increase in new launch prices by 4% compare to existing supply. Bangalore and MMR constitute 31% and 28% of new supply, respectively. 
 
Liases Foras said, MMR witnessed historic new launches with 18.16 million sq ft of new launches during this quarter. This was the second highest new lunches in a quarter in MMR. The highest new launches so far were during Q1 FY 10-11. 
 
Talking about inventory level, the report says the level in these six major cities increased by 2.48% to 6.88 lakh units admeasuring 919 million sq fts. Chennai, NCR and Pune show quantum of sales is higher than new supply while Bangalore and MMR shows sales is lower than new supply during last quarter. 
 
At India level, month inventory remained un-changed at 39 months from last quarter. NCR showed the worst months inventory at 71 months, while Pune market represents the least months inventory 18 month. MMR market stands at 46 months of Inventory. In ideal condition, a market should maintain 8-12 months of inventory, the report says.
 
 
The average price of six cities remained stable from previous quarter. MMR witnessed the maximum fall of 2.18% in weighted average prices compare to other cities, this is primarily due to new lunches in affordable segment. Pune shows slight increase in prices by 1.38% from previous quarter, Liases Foras added.

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Petroleum products, alcohol excluded from GST regime
By subsuming most indirect taxes levied by the central and state governments like excise, service tax, VAT and sales tax, the pan-India goods and services tax (GST) regime has proposed to facilitate a common market in the country.
 
As a measure of support for the states, petroleum products, alcohol for human consumption and tobacco have been kept out of the purview of GST.
 
Taxes on alcohol make up a major chunks of state revenues -- for instance, in Kerala it contributes 22 percent of revenue, while in Tamil Nadu it yields about Rs.21,000 crore per year.
 
Transport fuels like petrol and diesel are taxed at 20 per cent, while states earn 35 percent of their sales tax revenues from them.
 
In passing the GST Bill 2014 on Wednesday, the Lok Sabha also approved an amendment to help further states in the transition phase, by levying an additional tax of 1 percent on inter-state trade on goods.

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COMMENTS

Mukund Rajamannar

2 years ago

What are we going to get for the additional 1% tax that is being paid? Politicians dole out more freebies before elections.

Key differences in two bills on Goods, Services Tax
The original bill to amend the Constitution for introducing a pan-India Goods and Services Tax regime was moved by the United Progressive Alliance government in 2011. This bill lapsed. Here're the key differences between the lapsed bill and the one that was passed by the Lok Sabha on Wednesday:
 
- The original bill of 2011 was silent on the issue of compensating the states for the loss of revenue on account of a unified indirect tax regime. The new bill of 2014 wants the states to be compensated for five years.
 
- The amended version of the bill calls for a one-percent additional tax for a period of five years as additional compensation to go exclusively to the states where the said good is manufactured. The original bill has no mention of this.
 
- The original bill wanted exemptions from the unified Goods and Services Tax for specific petroleum products and alcohol, so as to leave it to the states to impose taxes on them. The new bill seeks to exempt not only alcohol and petroleum fuels, but also tobacco.
 
- The quorum set for the proposed Goods and Services Tax Council, under the chairmanship of the finance minister, has ben enhanced to one-half of the members from one-third earlier.
 
- On voting at the council meetings, the new bill says the decisions can be reached if one-fourth members are in favour, while the original bill was for decisions based entirely on consensus.
 
- The original bill called for a dispute settlement authority to be set up under a retired judge of the Supreme Court or the chief justice of a high court. The new bill deletes the provision and leaves it for the council to preside over such matters.
 
- The original bill was listed as the 115th amendment to the Constitution, while the new one passed by the Lok Sabha on Wednesday is for the 122nd amendment.

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