Pointing out the unequal tax structures for Information Technology SEZs and non-IT SEZs like Information Technology Parks (ITP), Software Technology Parks (STPs) and commercial complexes, builders associations have demanded a level playing field by extending similar tax incentives to them in this year’s budget. This was determined at a meeting held last week between the associations and housing and urban poverty alleviation minister Shelja Kumari.The government had earlier considered the option of creating an embargo to stop the migration of IT companies from non-SEZ areas to SEZs. “However, this may not have provided the solution. Instead, all IT and ITES companies operating from non-SEZ areas should be extended the same tax concessions and other incentives that are available to SEZs,” said Confederation of Real Estate Developers Association of India (CREDAI) president R S Ajmera.The real estate body has also submitted to the Urban Development ministry that the benefits for Industrial Parks (IP) be extended from the current notification of March 2009 to March 2015. The procedural norms for obtaining approval/notification from the commerce ministry and the Central Board of Direct Taxes should be done simultaneously, said the memorandum submitted to the urban development ministry. In addition, CREDAI, in its meet with the ministry for pre-budget discussions also raised the issue of tax on long-term capital gain. The representation stated, “The gain arising on transfer of house property being long-term asset should be only at 10 per cent along with benefits of indexation.” On the issue of FDI in real estate, the industry body sought clarification on its definition. It proposed that: “foreign investment should be allowed on project specific basis by describing a methodology for utilisation of funds raised on FDI compliant project only.” It suggested the formation of an agency to monitor the utilisation of funds for the said project only.The government has already expressed its intentions of bringing in a real estate regulator for Delhi NCR. However, the real estate developers see it as just another addition on to the long list of clearances. “This industry, unlike telecom sector, has unlimited number of players. How, then, will these regulators be helpful?” questioned Ajmera.
