City Lights: Real estate companies under lens for alleged tax evasion
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Real estate companies under lens for alleged tax evasion
Suspecting large scale service tax evasion, financial intelligence agencies are carrying out massive searches against various real estate firms across the country. The on-going search operation started a fortnight ago in which, the evasion by firms providing real estate services including renting and other collaborations was detected, official sources said. The sleuths have searched various real estate firms and builders offices in the Capital and in suburban areas including Noida, Ghaziabad, Bhiwadi, Mumbai, Hyderabad, Kolkata, Vishakhapatnam and Chennai among others. Real estate firms are required to pay 12.5 per cent service tax. Many of the deals mainly related to renting of land, house or any other commercial properties evade tax net as the money transactions are not recorded in government documents and taken directly and illegally.
Om Metals partners Mahindra Lifespaces for housing project
Engineering company Om Metals Infraprojects said it has tied up with realty firm Mahindra Lifespaces to develop a housing project in Hyderabad. In a filing to the BSE, Om Metals Infraprojects informed that Om Metals Developers, a special purpose vehicle (SPV) of its arm Om Metals Real Estate, has entered into a developer-owner collaboration agreement with Mahindra Lifespaces to develop a residential project at Kukatpally. Om Metals Infraprojects has 39 per cent stake in the SPV through its subsidiary Om Metals Real Estate and the rest 61 per cent is held by local builders. As per the agreement, Mahindra Lifespaces would develop 10 acre built-up area and would own a 80 per cent right of the total developed area in the project. The
remaining 20 per cent right would be with the SPV.
HUDCO to raise Rs 750 cr through tax-free bonds
The Housing and Urban Development Corporation (HUDCO) said it plans to raise R 750 crore through tax-free bonds with an option to retain over subscription up to shelf limit of R 5,000 crore. The bond issue will open on January 9 and close on January 22. The face value of each bond is R 1,000. The coupon rate for qualified institutional buyers and corporates has been fixed at 7.51 per cent per annum for 15 years and 7.34 per cent for 10 years. For retail investors, the coupon rate is 7.84 per cent for 10 years and 8.01 per cent for 15 years.