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Realty Sector Eligible for 100% FDI via automatic route

  • In a further relaxation in FDI policy, the Cabinet on Wednesday approved 100 per cent FDI under automatic route in the construction development segment, which includes townships, housing, built-up infrastructure and real estate broking services.
  • It also clarified that real estate broking services do not amount to real estate business and is, therefore, eligible for 100 per cent FDI under the automatic route. “The timing for this announcement is significant as the retail sector is poised to receive significant real estate supply in the near future.
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  • SC holds iron & steel rods used in construction and building works as ‘declared goods’ subject to restrictions stipulated by Parliament in terms of Article 286(3) of Constitution of India r/w Sections 14 & 15 of Central Sales Tax Act;
  • Observes that tax on works contract is a tax on ‘accretion’ and goods remain iron & steel rods at the point of such accretion

Senior Advocate N. Venkataraman lead the batch of appeals alongwith Senior Advocates S. K. Bagaria and Viswanathan, while State of Karnataka was represented by Mr. Bhat.

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We are Ahmedabad based professional consulting firm. We are providing various services to Construction, Real Estate and Project Companies in various areas like Indirect Taxation – Service Tax & Multi state VAT consultancy, ERP implementation, Site & Management audit, Designing Tender & other related contractual documents etc.