GST on real estate slashed – will there be any impact on prices?

News behalf of homebuyers, government has roled out one more pre-election sop by slashing the Goods & Services Tax (GST) rate on properties under construction from 18 percent (effective GST of 12 percent and 6 percent abatement for land) to 5 percent. Council also cut GST rate on affordable housing to a percent  from the current 8 percent and expanded the scope of affordable housing to units costing up to Rs 45 lakh and measuring 60 square metres (earlier 30 sq m) in metros and 90 sq m (earlier 60 sq m) in non-metro locations.

Builders will not be able to claim input tax credit. This is interesting as the final benefit depends on whether the benefit of GST rate cut outweighs the negative of no input tax credit as builders were rarely passing on the benefit of input tax credit to homebuyers.

For example of the Mumbai market, construction cost is typically around 40 percent. Input tax credit claimable was 7.2 percent and GST rate on the project was 12 percent, resulting in a positive spread of 4.8 percent. The abolition of input tax credit, tax paid on inputs is still 7.2 percent and GST rate is 5 percent, resulting in a negative spread. So, it remains to be seen if the benefits are passed on or the builder resorts to a small price hike. With view of the oversupply in the market, hiking prices may not be an option, resulting in a squeezing of margins for developers.

Market where the construction cost is a higher share of project cost, the economics is worse. For instance, if the construction cost was 80 percent of project cost, the input tax credit was 14.4 percent, and with a GST of 12 percent, there was a negative spread of 2.4 percent. With the slashing of GST rate to 5 percent, the spread is significantly negative.

Buyers, therefore, should expect no relief on final prices although they will now pay an effectively lower GST, since in the earlier regime the benefit of input tax credit was not passed on.

To affordable housing, the earlier input tax credit was 8 percent and the GST rate was also 8 percent. With the abolition of input tax credit, the benefit of 8 percent is gone, the new GST rate is a percent, again resulting in a negative spread for the developer and could lead to a small price hike.

Remains to be seen, in the face of the oversupply in the market, how developers react to the announcement. Given that availability of credit is increasingly becoming an issue for the real estate sector, resorting to price hike while clearing unsold inventory may not be an option. As we do not see this as fundamentally altering the stressed scenario of the real estate market and therefore the linkage to the rest of the economy would be at most limited.

Massive Fire accident In Chennai Parking Lot, about 176 Cars Burnt Down

Chennai: More than 176 cars were gutted this afternoon after a fire engulfed a parking lot on the outskirts of Chennai. The fire may have spread due to dry grass catching fire, fanned by winds.

Fire broke out near the Sri Ramachandra Medical College around 2 pm. 10 fire tenders were sent in to extinguish the fire.

These cars were parked by a private company over the last one year. Some are new cars. The fire has been extinguished but smoke is still coming."


Incident comes just a day after a similar fire gutted around 300 cars near the Bengaluru air show venue. Fortunately, no one was hurt.

Fire brigade and Rapid Action Force and the National Disaster Response Force (NDRF) teams doused the blaze in about 40 minutes after it was noticed around noon.

Indian Air Force has ordered a Court of Inquiry into the cause of the fire. Defence Minister Niramala Sitharaman visited the spot on Sunday.

Officials, who briefed Ms Sitharaman on Sunday, told her that the probable cause of the incident was fire from an overheated silencer of one of the parked cars and fanned by strong wings, it spread quickly.

Fire accident @ Bandipur kills wild animals, destroys 400 acres of forest land

Major fire accident in Karnataka's Bandipur Tiger Reserve destroyed over 400 acres of forest land and killed hundreds of wild animals on Saturday. Foresters suspect the fire was an act of sabotage.

As Dry grass and lantana weed, present across the forest, made fire spread rapidly even into the core forest areas within a few minutes. Strong wind gave foresters, firemen, Wildlife

volunteers and villagers a tough time in bringing the blaze under control. Fire was first noticed near Mangala, Shivapura and Hundipura on Friday.

Foresters closing the checkpost gate at Melkammanahalli, the entrance to Bandipur Tiger Reserve on the Mysuru-Ooty highway, weekend travellers en route to Ooty were stranded. While few waited for foresters to open the gate, others returned to Mysuru.

Last few years, major forest fires have occurred in Bandipur in the month of February in 2017, 2016 and 2014 destroying thousands of acres of wooded area in Bandipur.

Highest ever T20 total by Afghanistan after Hazratullah Zazai's 162

Afghanistan broke following records: 

1. Second fastest 100 in a T20I 

2. Most sixes in a T20I (Player) 

3. Most sixes in a T20I (Team) 

4. Highest ever partnership in T20 

5. 2nd best individual score in T20I 

6. Highest ever total in a T20

History created by Afghanistan against Ireland in their second Twenty20 International at the Rajiv Gandhi International Cricket Stadium in Dehradun, Uttarakhand on Saturday.

Afghanistan scored 278 for the loss of three wickets from 20 overs, to register the highest-ever total in T20s. They crossed Australia's record score of 263/3 which they achieved back in 2016 against Sri Lanka.

The bigman Hazratullah Zazai was star with the bat for Afghanistan, he scored 162 runs from just 62 balls. On his way to the huge score, Zazai hit 11 fours and 16 sixes. Zazai hence scored 140 runs in just boundaries alone.

Only one West Indian Chris Gayle has managed to score more runs in just boundaries (154) in a T20 innings, which was achieved in the IPL when he blasted an unbeaten 175 for Royal challengers Bangalore against Pune Warriors India in Bengaluru on April 23, 2013.

Fact, Afghanistan's 278 is the highest ever total in a T20 match, beating RCB's 263 for 5 against Pune in that same match.

The man Zazai became the first player from Afghanistan to score 150 or more runs, and his 236-run opening stand with Usman Ghani, who contributed 73 runs from 48 balls - including 7 fours and three sixes, became the highest partnership in T20Is, They beat 223-run stand between Australia's Aaron Finch and Darcy Short.

With response, Ireland ended with 194 for 6 with skipper Paul Stirling (91 off 50) being with the top-scorer. Star spinner Rashid Khan ended with four wickets, conceding 25 runs in four overs.

Afghanistan bagged the three-match T20I series, having won the first game by five wickets. Final game will be played on Sunday. Both teams will also play five ODIs and one Test after the T20 series.

Ambur Tannery ordered to shut as per the CPCB

Ambur : Second tannery of T Abdul Wahid (TAW) Tanneries, which is one of the largest exporters of leather to America and Europe, has been ordered to shut down with immediate effect by the Central Pollution Control Board (CPCB). Has also levied a fine of `11.20 lakh for polluting a well near the effluent treatment plant and operating without valid consents, under Water Act and Air Act, which expired two years ago.

Tannery, located in Solur village at Ambur in Vellore, also been found to be operating without valid authorisation under the Hazardous Waste Management Rules which expired in June 2016 by a team of scientists from CPCB’s regional directorate in Bengaluru. TAW tannery engineer said that they have put in the application before the Tamil Nadu Pollution Control Board (TNPCB), seeking consent under the Air and Water Acts. “Once we get the approval, the authorisation under Hazardous waste, which expired in 2016, will automatically be given,” he said.

Also said that the tannery will be shut down as per the CPCB’s directive. This is the second tannery which has been asked to be shut down by CPCB. The first tannery located at the same place, was asked to shut down last month as it also did not have consent from TNPCB to operate after the earlier Consent to Operate expired on March 31, 2018.

CPCB said that the tannery has to pay an environmental compensation of `11.20 lakh at `20,000 per day with effect from December 20, 2018 to February 20, 2019, while directing the State electricity board to cut down power supply with immediate effect. Has also asked the TNPCB chairman to ensure compliance.

Board took the action after a team of scientists from CPCB’s regional directorate in Bengaluru found that the water of the open well, located close to the effluent treatment plant of the tannery which is engaged in processing raw hides to finished leather, is black in colour. This indicates discharge or mixing of untreated effluents with well water. Also found that the tannery does not maintain data on water consumption, CPCB stated.


Report also stated that the unit has not disposed any solid waste after 2016 and also the effluent is bypassed without any treatment. Has sought remedial action by TAW which includes installation of piezometric wells as per ground water gradient around the area. Has also asked the industry to submit a ground water remediation plan as well as ensure complete treatment of trade effluent and maintain records on fresh water consumption, waste water generation and solid wastes generation and disposal.

Source:http://www.newindianexpress.com/states/tamil-nadu/2019/feb/23/tannery-in-ambur-ordered-to-shut-1942614.html

Fire accident Near Bengaluru Air Show,| 300 Vehicles On Fire, Cigarette Could Be Cause

Bangalore: Almost 300 vehicles have been destroyed in a big fire at the parking lot of the venue of the air show in Bengaluru this afternoon. Higher Officials say the cause of the fire could be a lit cigarette that was disposed on the grass in the open field.
Very Huge plumes of thick black smoke could be seen in the sky near the Yelahanka air base in north Bengaluru, where about a hundred aircraft are parked for the biennial Aero India 2019 event.

Sr. Police officer MN Reddi said the fire spread rapidly due to dry grass and strong winds. Hundreds of vehicles, including two-wheelers and cars, were seen parked in files in the open ground, surrounded by fire.

Fire, which started at 11:55 am, has been brought under control and no injuries have been reported.

As "Fire in the open field parking lot of aero show. Nearly 20 cars burnt. Fire fighting operations by Chief Fire Officer and 10 water tenders staff under way (sic)," Mr Reddi tweeted.

Defence Ministry statement said the parking area is located well away from the venue, on the other side of the highway.

"IAF immediately launched one helicopter for aerial assessment,  helicopter assisted by providing effective directions to fight the fire. Fire was brought under control by deploying more than 12 fire fighting vehicles," the statement said.

Court of Inquiry has been ordered to investigate the cause of fire, the Defence Ministry added.

Air show was temporarily suspended once the fire spread and no planes took off from the airbase till the fire was completely doused.

This incident comes less than a week after two jets of the Indian Air Force's Suryakiran Aerobatic Team crashed after a mid-air collision over the air base. As one of the three pilots in the crash had died.

Five-day air show started on Wednesday and will conclude tomorrow.

Fire accident @ medical college in Chennai, students escape without harm

CHENNAI: Students of a medical college on Chennai located had a fortunate escape after a fire broke out early on Friday in the boys' hostel.

Team Fire safety officials said the fire broke out in one of the rooms in the boys' hostel on the fourth floor in Saveetha Institute of Medical and Technical Sciences campus @ Velappanchavadi around 4.30 am.

When Most of the students were sleeping at that hour, some boys noticed the fire and raised an alarm.

Four fireman tenders from Sriperumbudur, Irungattukottai, Poonamallee and one private water tanker were rushed to the spot to heatout the flames.

Officer added that the inmates immediately vacated the rooms, taking their valuables along with them. "None was injured in the mishap and no major property damage has been reported. However, 15 beds in the hostel were gutted in the fire," said the fire officer.


Later an hour, the fire was brought under control. Preliminary investigations revealed that the air conditioner from the main hall had heated up due to overuse in the night and caught fire which spread to the adjacent rooms.

Benefits of Banana

1. Helps who wants to quit smoking.
2. Can boost brain power.
3. Relieves menstrual cramps.
4. Reduce itchy mosquito bites.
5. Prevents anemia.
6. Promotes healthy bones.
7. Reduce depression.
8. Lowers risk of heart dieases and hypertension.
9. Regulates bowel movements.
10. Helps people with ulcer.

Gayle Storm Sets New Record In International Cricket

Chris Gayle already announced retirement from ODI cricket after World Cup 2019.

Big man Chris Gayle surpassed Shahid Afridi to record most number of sixes by any batsman in international cricket. Windies batsman achieved this feat while playing against England in the first One-Day International (ODI) at the Kensington Oval on Wednesday. Chris Gayle, who recently announced that he will retire from ODIs after ICC World Cup 2019, now he has 477 sixes to his name. Achieved this feat in his 444th match while Afridi had smashed 476 sixes from 524 matches. Chris Gayle has now smashed 276 sixes in ODIs, 103 sixes in T20Is and 98 maximums in the longest format of the game.

Brendon Mccullum is 3rd in the list with 398 hits over the fence, followed by Sanath Jayasuriya (352) and Rohit Sharma (349).

This month earlier, 39-year-old veteran batsman had been recalled by the Windies for the first two ODIs against England in preparation for this year's World Cup. Chris Gayle last played for the Windies during a home series against Bangladesh last July.

Big-hitting left-hander had pulled out of limited-overs series against India in October last year citing personal reasons.

Big Gayle holds the West Indian record for most ODI hundreds with 23, and is their second-leading run-scorer in the 50-over format with 9,727 runs -- trailing only Brian Lara (10,405).

Runs 215 against Zimbabwe in the 2015 World Cup also represents the highest limited-overs score by a West Indies batsman.

Public exam for 5th and 8th from this year itself - Education Department

As per central government recommendations, Tamil Nadu State Government Department of School Education has announced that the public examinations for the 5th and 8th Standards will be conducted from this year itself.

Circular sent by the Director of the School Education Department, to the district Primary Education Officers, it is mentioned that public examinations will be conducted for the 5th and 8th Standard students from the academic year 2018-19 (This year onwards).

Also mentioned that there would be no fees to be paid for these examinations for the students who study in government schools. However, private school students need to pay fees – Rs. 50 for the 5th Standard Public Exams and Rs. 100 for the 8th Standard Public Examination.
Public Exams will be of 2 hours duration for both 5th and 8th Standards. After the examination, the question papers put back in the regional resource centers.