APPLICATION FOR RERA REGISTRATION

Ø Application of registration u/s4 to be made as per the Form ‘A’ prescribed under Rule 3(3) and along with the same declaration has to be filled in Form ‘B’ as per Rule 3(6).

Ø The concept of 70:30 is mentioned in section 4(2)(i)(d).

Ø Registration is guaranteed under section 5.

Ø Registration can be revoked u/s 7.

Registration and obligation of real estate

Ø As per RERA it now mandatory that real estate agents selling the premises in Real estate project have to register u/s9 by complying as per the form ‘G’ prescribed under Rule 11(2)

Ø As per Rule 12(4) the registration shall be valid for period of 5years.

Ø The provision for renewal in respect of Real estate agent should not be done as per Rule 13.

Ø There are various obligation caused on Real estate agent under Rule 14

Ø Revocation of registration of breach of provision mentioned in Rule15.

Ø As per the Rule 16 Real estate agents has to maintain and preserves separate books, accounts, documents. 70% of realization from allottees in a separate bank account

1.    The Act mandates that a promoter shall deposit 70% of the amount realized from the allottees, from time to time, in a separate account to be maintained in a scheduled bank. This is intended to cover the cost of construction and the land cost and the amount deposited shall be used only for the concerned project.

2.    The promoter shall be entitled to withdraw the amounts from the separate account, to cover the cost of the project, in proportion to the percentage of completion of the project. However, such withdrawal can only be made after it is certified by an engineer, an architect and chartered accountant in practice that the withdrawal is in proportion to the percentage of completion of the project

3.    The promoter is also required to get his accounts audited within six months after the end of every financial year by a practicing chartered accountant. , Further, he is required to produce a statement of accounts duly certified and signed by such chartered accountant, and it shall be verified during the audit that (i) the amounts collected for a particular project have been utilised for the project; and (ii) the withdrawal has been in compliance with the proportion to the percentage of completion of the project.

The application for registration must disclose the following information:

Ø Details of the promoter (such as its registered address, type of enterprise such proprietorship, societies, partnership, companies, competent authority)’.

Ø A brief detail of the projects launched by the promoter, in the past five years, whether already completed or being developed, as the case may be, including the current status of the projects, any delay in its completion, details of cases pending, details of type of land and payments pending.

Ø An authenticated copy of the approval and commencement certificate received from the competent authority and where the project is proposed to be developed in phases, an authenticated copy of the approval and commencement certificate of each of such phases.

Ø The sanctioned plan, layout plan and specifications of the project, plan of development works to be executed in the proposed project and the proposed facilities to be provided thereof and the locational details of the project.

Ø Performa of the allotment letter, agreement for sale and conveyance deed proposed to be signed with the allottees.

Ø Number, type and carpet area of the apartments and the number and areas of garages for sale in the project.

Ø The names and addresses of the promoter's real estate agents, if any, and contractors, architects, structural engineers affiliated with the project.

A declaration by the promoter supported by an affidavit stating that:

Ø He has a legal title to the land, free from all encumbrances, and in case there is an encumbrance, then details of such encumbrances on the land including any right, title, interest or name of any party in or over such land along with the details;

Ø The time period within which he undertakes to complete the project or the phase; and

Ø 70% of the amounts realised for the real estate project from the allottees, from time to time, shall be deposited in a separate account to be maintained in a scheduled bank to cover the cost of construction and the land cost and shall be used only for that purpose.

DUTIES OF PROMOTER

Ø Upon receiving the login id and password Promoter has to create his web page on the website of the authority

Ø To enter all the details of the proceed project on his web page

Ø Once in three months the promoter has to update the data on web page in respect of booking status, approvals, status of the project etc..

Ø Advertising material should reflect should the registration details of the promoter.

Ø Promoter has to abide by all the obligation under section 11(3) at time of time of booking

Ø As per the section 12 promoters will solely responsible for on regards as the advertisement of prospectus.

Ø As per section 13 promoter cannot accept more than 10% of the cost of apartment without executing the contract.(in MOFA it is used to be 20 %)

Ø As per section 15 promoters cannot transfer the Real estate project to the third party without obtaining the consent 2/3rd of the allotters.

Ø  As per section 16 promoters has to insure Real estate projects in respect of land and building and construction of Real Estate project.

Ø As per s.17 promoter has to transfer the title when the norms are fulfilled for its transfer.(this done with help of amendment of land titling bill 2010 which gives the entire mechanism of land titling

 BENEFITS OF THE CUSTOMER

The Authority shall in order to facilitate the growth and promotion of a healthy, transparent, efficient and competitive real estate sector make recommendations to the appropriate Government of the competent authority, as the case may be, on,—

(a) protection of interest of the allottees, promoter and real estate agent;

(b) creation of a single window system for ensuring time bound project approvals and clearances for timely completion of the project;

(c) creation of a transparent and robust grievance redressal mechanism against acts of ommission and commission of competent authorities and their officials;

(d) measures to encourage investment in the real estate sector including measures to increase financial assistance to affordable housing segment;

(e) measures to encourage construction of environmentally sustainable and affordable housing, promoting standardisation and use of appropriate construction materials, fixtures, fittings and construction techniques;

(f) measures to encourage grading of projects on various parameters of development including grading of promoters;

 (g) measures to facilitate amicable conciliation of disputes between the promoters and the allottees through dispute settlement forums set up by the consumer or promoter

associations;

(h) measures to facilitate digitization of land records and system towards conclusive property titles with title guarantee;

(i) to render advice to the appropriate Government in matters relating to the development of real estate sector;

(j) any other issue that the Authority may think necessary for the promotion of the real estate sector.

CIVIL COMPLAINT

No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Authority or the adjudicating officer or the Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act.

 (1) No court shall take cognizance of any offence punishable under this Act or the rules or regulations made there under save on a complaint in writing made by the Authority or by any officer of the Authority duly authorised by it for this purpose.

(2) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Act.

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Legal Framework for Corporate Social Responsibility

With the introduction of companies’ act 2013, India has become first country to mandate CSR. The fact that CSR initiatives are taken voluntarily, has been ignored and the act has provided for compulsory spending on CSR.

As per section 135 of the new act, Every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year shall constitute a CSR committee of the board consisting of three or more directors (at least one shall be independent director). The committee shall

1.        Formulate and recommend to the board a CSR policy

2.        Recommend the amount of expenditure, and

3.        Monitor the CSR policy.

The Companies Act 2013 encourages companies to spend at least 2% of their average net profit in the previous three years on CSR activities. The ministry’s draft rules, that have been put up for public comment, define net profit as the profit before tax as per the books of accounts, excluding profits arising from branches outside India

Applicability: Every company having net worth of rupees five hundred crore or more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year shall constitute a Corporate Social Responsibility Committee of the Board consisting of three or more directors, out of which at least one director shall be an independent director.

•The Board's report under sub-section (3) of section 134 shall disclose the composition of the Corporate Social Responsibility Committee.

The Corporate Social Responsibility Committee shall,—

•Formulate and recommend to the Board, a Corporate Social Responsibility Policy which shall indicate the activities to be undertaken by the company as specified in Schedule VII;

•Recommend the amount of expenditure to be incurred on the activities referred to in clause (a)

•Monitor the Corporate Social Responsibility Policy of the company from time to time.

SOCIAL RESPONSIBILITY AND RELATED DISCLOSURE:

1)        Means of Communication

2)        Various Social Responsibilities fulfilled by Company

3)        Customer care Grievance

4)        Financial Risk Management

5)        Business Environmental Responsibility

Economic growth is possible only through consumption of inputs available in the environment and society. The harnessing of natural resources has a direct impact on the economy, the environment and society at large. Corporate Social Responsibility (CSR) is a concept whereby organizations serve the interests of society by taking responsibility for the impact of their activities on customers, employees, shareholders, communities and the environment in all aspects of their operations. Corporate social responsibility is not about just giving randomly but about bringing benefits to all the stakeholders, including customers, employees and community at large.

•Respect for Worker’s Right and Welfare: The companies should provide the workplace environment that is safe, hygienic and humane to work. They should be taken care of the heath issues arising out of the work of the organization. It should conduct the training and development program within the organization for the people of the organization.

•Woman Empowerment: Empowering women and achieving gender equality – the goals of the Women’s Empowerment Principles - requires intentional actions and deliberate policies. The WEPs are based on concrete business practices and have inspired companies around the world to tailor existing policies and programmes – or establish needed new ones – to realize women’s empowerment.

 Corporate Social Responsibility Dimensions

•Sport Promotion: These include CSR initiatives and investments in the sector by leading corporate houses, and non-profit foundations. These foundations are chiefly involved in providing opportunities to children from the under-privileged sections to take up sports, supporting promising sportspersons in accessing world class training facilities and developing sporting infrastructure.

 •Employment Generated: Jobs continue to be created, needing an educated workforce and many in sunrise sub-sectors. We need to recognize new opportunities and prepare the supply side.

•Educational Employee Training: Employee training and development is a broad term covering multiple kinds of employee learning. Training is a program that helps employees learn specific knowledge or skills to improve performance in their current roles.

•Employee Grievance: refers to the dissatisfaction of an employee with what he expects from the company and its management. A company has to provide an employee with a safe working        environment, realistic job preview, adequate compensation, respect etc.                       

•Benefits of Employee Welfare: They provide better physical and mental health to workers and thus promote a healthy work environment. Facilities like housing schemes, medical benefits, and education and recreation facilities for worker's families help in raising their standards of living. This makes workers to pay more attention towards work and thus increases their productivity. Employers get stable labor force by providing welfare facilities. Workers take active interest in their jobs and work with a feeling of involvement and participation.

•Increased Sales and Customer Loyalty: The customers also recognize those companies which are socially responsible. This results in increased sales and content customers.

•Complaint Received During the year: A customer complaint highlights problems with employees or internal processes and you can fix them before further problems arise and cause a bad customer experience. One of the advantages of CRM is that you can keep a record of customer feedback, both positive and negative.

•Complaint Resolved: The complaint is closed as Resolved because the provider has met the member's request for resolution to the complaint (as outlined on the Complaint Resolution Process complaint form).

•Complaint Pending: The complaint is currently in process. No final outcome has been determined.

•Investor Education and Protection Fund (IEPF): is for promotion of investors’ awareness and protection of the interests of investors. This website is an information providing platform to promote awareness, and it does not offer any investment advice or evaluation.

•Financial Risk Management             

Financial Risk Management is           the practice of economic value in a firm by using financial instruments to manage  exposure  to risk, particularly credit risk and market risk. Other types include Foreign exchange risk, Shape risk, Volatility risk, Sector risk, Liquidity risk, Inflation risk, etc. Similar to general risk management, financial risk management requires identifying its sources, measuring it, and plans to address them. Profit Risk is a risk management tool that focuses on understanding concentrations within the income statement and assessing the risk associated with those concentrations from a net income perspective.

•Legal Risk Management

Legal Risk Management refers to the process of evaluating alternative regulatory and non-regulatory responses to risk and selecting among them. Even with the legal realm, this process requires knowledge of the legal, economic and social factors, as well as knowledge of the business world in which legal teams operate. In an organizational setting, risk management refers to the process, by which an organization sets the risk tolerance, identifies potential risks and prioritizes the tolerance for risk based on the organization’s business objectives, and manages and mitigates risks throughout the organization.

•Risk Management

Risk Management and Internal Control help organizations understand the risks they are exposed to, put controls in place to counter threats, and effectively pursue their objectives. They are therefore an important aspect of an organization’s governance, management, and operations. Professional accountants can and should play a leading role in helping their organizations achieve an integrated, organization-wide approach to risk management and internal control—which ultimately helps create, enhance, and protect stakeholder value.

Business Environmental Responsibility

The companies are required to utilize the Planet i.e., Natural Capital in a well manner so that it cannot be wasted, excess utilized which is also required for the other states or countries and also requires to be preserve for the future generation.

Environmental management system that offers a framework that companies and organizations can follow in order to set up an effective environmental management program. Its certificate means that the company or organization is measuring and reducing its environmental impacts. Sustainability Report is used by companies to communicate their economic, environmental and social activities to depict transparency and compliance to rules and regulations.

•Audit of Environment: There are three main types of audits which are environmental compliance audits, environmental management audits to verify whether an organization meets its stated objectives, and, functional environmental audits such as for water and electricity.

•Pollution Control: Pollution prevention is a major global concern because of the harmful effects of pollution on a person’s health and on the environment. Environmental pollution comes in various forms, such as: air pollution, water pollution, soil pollution, etc.

•Project Location and Development: Project management is the discipline of initiating, planning, executing, controlling, and closing the work of a team to achieve specific goals and meet specific success criteria.

•Forest and Plantation of Tress: Industrial plantations are actively managed for the commercial production of forest products. Industrial plantations are usually large-scale. Individual blocks are usually even-aged and often consist of just one or two species. These species can be exotic or indigenous. The plants used for the plantation are often genetically altered for desired traits such as growth and resistance to pests and diseases in general and specific traits.

•Plants having Child Labour: The social scenario, however, changed radically with the advent of industrialization and urbanization under the impact of the newly generated centrifugal and centripetal forces; there was an unbroken stream of the rural poor migrating to urban center in search of livelihood. The child had to work as an individual person either under an employer or independently. His work environment endangered his physical health and mental growth and led to his exploitation. The protection and welfare of these children, therefore, become an issue of paramount social significance.

We, "PNJ Legal Consultants" are one of the well known organizations engaged in providing Consultancy Services keeping in mind the Client Service Mentality.

Our team members deliver excellent performance in providing these services and our clients can avail the services at affordable prices.

Our sophisticated team has complete knowledge of various exercises and technicalities that are used in our services. Our services includes Strategy Consulting, GST Consulting, Asset Management, Feasibility Study, International Arbitration, Due Dilligence, Franchisee Consulting, Financial Audits, Operational Audits, Tax Heaven Registrations, Shareholder Agreements, Start up Consulting, IP Consulting, Taxation Services, Accounting system design and Mergers Acquisitions.

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Composition Scheme Rules under GST

Composition Scheme Rules under GST provide for all the procedural compliance w.r.t. intimation for Composition Scheme, effective date for levy, conditions and restrictions on levy, validity of levy and rate of tax.

The current state indirect tax regime has provided a simpler compliance for small dealers known as the Composition Scheme. Under this scheme you,

• Pay taxes only at a certain percentage of turnover
• File periodic returns only (usually on a quarterly basis)
• Have an option of not having to maintain detailed records or follow tax invoicing rules
• Are not allowed to take Input Tax Credit (ITC)
• Are not allowed to collect tax on sales

A. Intimation and Effective date for Composition Levy

1.   For persons already registered under pre-GST regime

Any person being granted registration on a provisional basis (registered under VAT Act, Service Tax, Central Excise laws etc) and who opts for Composition Levy shall file an intimation in FORM GST CMP-01, duly signed, before or within 30 days of appointed date. If intimation is filed after the appointed day, the registered person:

a) Will not collect taxes

b) Issue bill of supply for supplies

FORM GST CMP- 03 must also be filed within 60 days of exercise of option:

a) Details of stock

b) Inward supply of goods received from unregistered persons held by him on the date preceding the day of exercise of option.

2. For persons who applied for fresh register under GST to opt scheme

For fresh registration under the scheme, intimation in FORM GST REG- 01 must be filed.

3. Registered under GST and person switches to Composition Scheme

Every registered person under GST and opts to pay taxes under Composition Scheme, must follow the following:

a) Intimation in FORM GST CMP- 02 for exercise option

b) Statement in FORM GST ITC- 3 for details of ITC relating to inputs lying in stock, inputs contained in semi-finished or finished goods within 60 days of commencement of the relevant financial year

b. Conditions for a Composite Tax Payer

Apart from the threshold limit, the following conditions are applicable for a composite tax payer:

• Cannot be engaged in supply of services, other than supply of food or drinks for human consumption
• Cannot be engaged in manufacture of specific notified goods
• Cannot supply goods not taxable under GST
• Cannot supply goods through an e-commerce operator
• No Interstate outward supplies – A composite tax payer should not engage in interstate outward supply of goods and / or services .
• Payment of composition tax – If the composite tax payer is in the trade of supplying goods and services, then composition levy will be applicable for both supply of goods and supply of services.
• Does not have to collect tax – The composite tax payer does not have to collect tax on all his outward supply of goods and / or services.
• Applicable for all business verticals under the same PAN – Composition levy will be applicable for all business verticals operating within state or interstate under the same pan.
• What does this mean?
• An individual with different business verticals, like:
• Mobiles & Accessories
• Stationery
• Franchisee

In the above scenario, the composition scheme will be applicable for all three business verticals. The dealer cannot opt for any one business vertical to fall under the composition scheme. For example, if the business vertical’s place of business is in Karnataka & Kerala for a single PAN, each of the business vertical in that particular state should have only ‘Intra-State(within state)’ supplies.

• Cannot claim Input Tax Credit – The composite tax payer is not eligible to claim input tax credit on all his inward supply of goods and / or services.
• What does this mean?
• If a dealer chooses to be a composite tax payer, he cannot claim input tax credit even if he makes taxable purchases from a regular taxable dealer. Ideally, the taxable amount would be added to the composite tax payer’s cost.
• Conclusion

Any person who opts for the scheme will be deemed to have been opted for all the places of business having the same registered PAN. Hence, you may not choose any one of all the place of business to be registered under scheme.

Composition Scheme Rules under GST have been targeted to be strict and crisp for the persons availing the Composition Scheme.

We, "PNJ Legal Consultants" are one of the well known organizations engaged in providing Consultancy Services keeping in mind the Client Service Mentality.

We have a team of highly qualified professionals and time to time training is provided by us as per the requirements. Our team members deliver excellent performance in providing these services and our clients can avail the services at affordable prices.

Our sophisticated team has complete knowledge of various exercises and technicalities that are used in our services. Our services includes Strategy Consulting, GST Consulting, Asset Management, Feasibility Study, International Arbitration, Due Dilligence, Franchisee Consulting, Financial Audits, Operational Audits, Tax Heaven Registrations, Shareholder Agreements, Start up Consulting, IP Consulting, Taxation Services, Accounting system design and Mergers Acquisitions.

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Importance of a Project feasibility study

The majority of the businesses often under look Project feasibility study during a brand-new project and jump straight into delegations and timelines.  But a well-planned feasibility study can not only save precious time, money and resources but also ease the project management.

Businesses do not succeed by brilliant and world-changing ideas, but rather succeed by hundreds of hours of hard work and careful planning. That is why out of 50 ideas only 1 makes into a real business. This is where the importance of due diligence and Project feasibility study comes in. 

Here are few advantages of Project feasibility study.

1.      Starting a New Business: Launching a brand new business isn’t only about short-term gains and profits, but about making business sustainable to generate long-term growth. In the case of launching a business, two types of feasibility studies can be performed. How many resources are necessary to start the business and long-term viability of the business.

Many businesses have ignored the importance of feasibility study, and have failed horribly. One such example would be during late 90’s .com bubble- companies who had great ideas but unsustainable methods became examples of high profile failures. All because they ignored the importance of feasibility study.

2.      Changing an existing product or service: Change is the law of nature. And businesses who don’t change with time often end up remaining just a brand (Nokia, Blackberry), innovation is the key to success. Just look at apple and google for example. At times when making changes in the existing products or services become necessary, a feasibility study proves to be extremely useful. Based on the study companies can strategically decide to experiment with their existing products and meet customer demands.

3.      Launching a new Product or Service: Just like changing existing products or services, launching new products or services without risking the entire company can only be done through the help of routine feasibility study. Based on their studies companies decide whether a change in consumer demand is worth making a new product or not.

4.      Starting a partnership:  Investors, employees and shareholders need assurance that merger of companies will indeed lead to a better future. Feasibility studies help them understand whether the partnership or merger is going to bring any long-term benefits or not.

The simplest way of doing a Project feasibility study for your business:

·        Conduct a pre-feasibility study and decide whether you actually need the study or not.

·        Check all your options before you finalise your idea.

·        Assess the Demand in you desired market.

·        Assess the competition and marketing possibilities.

·        Determine the challenges, both short –term and long-term.

·        Make a routine for your feasibility study.

·        Hire expert consultants for a pure objective Project feasibility study.

Conducting a project feasibility study can be time and resource consuming, that is why it is always a good idea to hire professionals to help you get a completely objective feasibility analysis.  We at pnjlegal.com provide professional project feasibility analysis and other services.

We, "PNJ Legal Consultants" are one of the well known organizations engaged in providing Consultancy Services keeping in mind the Client Service Mentality.

We have a team of highly qualified professionals and time to time training is provided by us as per the requirements. Our team members deliver excellent performance in providing these services and our clients can avail the services at affordable prices.

Our sophisticated team has complete knowledge of various exercises and technicalities that are used in our services. Our services includes Strategy Consulting, GST Consulting, Asset Management, Feasibility Study, International Arbitration, Due Dilligence, Franchisee Consulting, Financial Audits, Operational Audits, Tax Heaven Registrations, Shareholder Agreements, Start up Consulting, IP Consulting, Taxation Services, Accounting system design and Mergers Acquisitions.

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