A home is expected to be a haven for its residents attracting positive energy, peace, and good luck. Vastu shastra is an architectural system that provides certain guidelines for the layout, geometry, measurements, and designs. These vastu principles are incorporated into the architectural design of the houses. While some of them do not believe in vastu, some people believe incorrect vastu can cause serious health and financial problems for residents.

Not everyone can afford to buy plots in Chennai and build a home that is vastu compliant. The rapid urbanization of cities is making it difficult to buy a piece of land in Chennai that is vastu compliant. Buying plots on the outskirts of Chennai may pose commutation problems. Therefore, most homebuyers make an informed choice of buying flats that is relatively vastu compliant to lead a happy life.

Now let’s look at favourable directions for each component of a house.

Building Structure:

It is advisable that the building structure should be constructed along with the four cardinal directions and not be built along with the corner directions.

Placement of the Entrance Door:

It is favourable to have an entrance door in the North or East direction or North-East corner of the flat. Depending on horoscopes, some astrologers advise people to buy flats having South or West entrances. Also, consult your astrologer on buying flats that has entrance doors at the South-West corner. Remember, the entrance door should open in a clockwise direction.

Placement of Kitchen:

The South-East corner is considered as Agni moolai. The North-West corner is considered as Vaayu moolai. It is ideal to have a kitchen in the South-East direction. The next preferable spot for the kitchen is the North-West corner of the flat. The kitchen should not face the entrance door. The gas stove should be facing the East or North direction. If the Kitchen is placed in the North-West corner, then ensure that the master bedroom, bathroom, toilet, borewell, or overhead tank are not placed in the South-East corner of the flat.

Placement of Bedrooms:

It is ideal to have a master bedroom in the South-West corner of the flat. The head should rest in the south or west direction and the legs pointing in the north or east direction. It is advisable to have the bed in the centre of the bedroom. The master bedroom in the North-East corner of the flat may cause health deterioration. The master bedroom in the South-East corner of the flat may increase anxiety and quarrels within the family. The guest bedroom or kid’s bedroom can be placed in the East or North-West corner of the flat.

Placement of Puja Room:

The North-East corner is considered as Eesani moolai. It is ideal to have a Puja room in the North-East corner of the flat.

In this blog, let us discuss about the Goods and Services Tax (GST) when you purchase a residential property anywhere across India.

What is GST?

Goods and Services Tax (GST) is an indirect tax on the supply of goods and services. It is a comprehensive, multi-stage, destination-based tax. GST is comprehensive because it has subsumed almost all the indirect taxes such as Service Tax, VAT, Excise Duty, Central Sales Tax, Entertainment Tax, Luxury Tax, Entry Tax, etc levied by the Union and State Governments. GST is multi-stage because it is imposed at every step in the production process, but GST can be claimed as input credit by all parties involved in the production process other than the final consumer. GST is a destination-based tax because it is collected from point of consumption and not the point of origin like previous indirect taxes.

In India, Goods and Services Tax (GST) came into effect on July 1, 2017, through the implementation of the 101st Amendment of the Constitution of India by the Indian government. The tax rates, rules and regulations are governed by the GST Council which consists of the finance ministers of the Union Government and all the States.

The current GST structure has five different tax slabs for the collection of tax: 0%, 5%, 12%, 18%, and 28%. However, petroleum products, alcoholic drinks, and electricity are not taxed under GST and instead are taxed separately by the respective State Governments, as per the previous tax system. There is a special rate of 0.25% on rough, precious and semi-precious stones and 3% on gold.

GST on Residential Plots:

The land is an immovable property. The sale of land is neither a supply of goods nor a supply of services. If the sale of land involves just the transfer of ownership, then it does NOT attract GST as per Schedule III of the Goods and Services Tax Act 2017. The sale of land attracts only Stamp Duty levied by the respective State Governments along with Registration Charges.

However, the Central Board of Indirect Taxes and Customs (CBIC) clarified through a notification on August 3, 2022, that GST is applicable for the services rendered by the Developer for laying of roads, laying of drainage pipelines, laying of electricity cables, setting-up of sub-stations, leveling of land, developing amenities such as clubhouse, etc at applicable rates.

Therefore, when you buy a plot from a plotted development, GST is applicable on the amount which a developer is charging for providing additional services and common amenities.

GST on Residential Flats / Villas:

Before the era of Goods and Services Tax (GST), homebuyers were charged with Service Tax and Value Added Tax (VAT) at the time of purchasing an under-construction property. While Service Tax was levied by the Government of India, VAT was levied by the respective State Government.

Both taxes were applicable to under-construction properties where the builder has not received a “completion certificate” from the competent authorities. However, there would be no levy of service tax or VAT if the homebuyer buys a property after the builder obtained a “completion certificate”. The onus of collecting and remitting service tax and VAT from the homebuyer and depositing with the concerned authority rests with the builder.

With the implementation of the GST Act that came into effect on 1st July 2017, homebuyers buying an under-construction apartment are liable to pay GST at a specified rate on the property value. Completed projects i.e., those projects that have received their completion certificate from a competent authority are not liable to pay GST. The developers were mandated to charge GST from the homebuyers for the purchase of an under-construction property and in turn, pay the GST to the Government of India.

Before March 31, 2019, the GST rate for an under-construction property under the “other than affordable housing projects” category was 12% with an input tax credit (ITC) and for an under-construction property under the “affordable housing projects” category was 8% with an ITC.

The Government of India expected that the cascading benefit of an input tax credit would be passed on to the homebuyers. However, some developers were profiteering by not passing this cascading benefit to the homebuyers. Homebuyers were feeling the heat of paying more than 20% of the property cost as Government taxes and levies.

This forced the Government of India to modify GST rates and input credit. From April 1, 2019, the GST rate for an under-construction property under the “other than affordable housing projects” category was 5% with NO ITC and for an under-construction property under the “affordable housing projects” category was 1% with NO ITC.

GST on Corpus Fund:

Contributions made by homeowners of a cooperative housing society (CHS) towards a sinking fund meant for the future upkeep of the society will be subject to the goods and services tax (GST).

The Authority for Advance Ruling (Karnataka) has held that contribution made by the homeowners of a housing society or residents welfare association towards the corpus fund (also termed as sinking fund) is not a “deposit”, but in fact, an “advance” collected from the homeowners for future upkeep and maintenance works of the society. Thus, the sinking fund shall attract 18% GST.

However, one can avail of exemption of GST for the value of supply up to an amount of ₹ 7,500/ – per month per member. In case the maintenance charges or the contributions to the sinking fund exceed Rs.7,500/ – per month per member, the entire amount is taxable.

GST on Other Charges:

The Authority for Advance Ruling (Maharashtra) has held that the charges collected by real estate developers for other than construction services, such as the development of clubhouse, amenities, utilities, and facilities, shall attract 18% GST provided these charges do not form a part of the total sale consideration for the purpose of stamp duty calculation.

If the development of amenities, utilities, and facilities are considered as a part of total sale consideration for the purpose of stamp duty calculation, then the same shall be considered as a composite supply of works contract and thus the same shall attract an effective rate of GST (5% GST for on other than affordable housing).

Your dream home is not just a place you live. It is hard-earned money over several years. The investment that you make in a property should give you peace of mind and confidence about every aspect of home buying. While one has a choice to buy a dream home from a small-time builder, read the blog to know why you should buy your dream home from the reputed builders in Chennai.

Developer Credibility:

When you are looking to buy a property in Chennai, you should first look at the builder’s credibility, experience, and deliverability of the projects. Look for developers who have been in the market for at least 5 years and have successfully handed over several projects over the years.

Small-time builders may execute just 1 or 2 projects in a year. Whereas top real estate companies in Chennai have at least 5 to 10 ongoing residential projects in Chennai and at least another 5 upcoming residential projects in Chennai.

Statutory Approvals and Legal Compliance:

Small-time builders may not check whether the land parcel on which the project is proposed has a 100% clear title. Some builders may not obtain all statutory approvals and no objection certificates. Some builders may also deviate from the approved plans. There are several instances where buyers became aware of such unapproved deviations on court notice. These can put the hard-earned money of homebuyers at risk.

On the other hand, renowned builders carry out proper due diligence on the land parcel. They accept land parcels that have 100% clear titles to avoid any risk for their investment and returns. They also obtain all statutory approvals, no objection certificates, and legal compliances.  They also construct and deliver projects as per approved planning permits and obtain a completion certificate from the competent authority. Therefore, it is wiser and safer to buy properties from renowned property developers in Chennai.

Architectural Design and Construction Quality:

Small-time builders may not have the engineering expertise to design and build the projects. They depend on small-time architects and contractors for building design and construction. There are also chances that the floor plan may have a lot of dead spaces that a homebuyer cannot use effectively but need to pay for it. The collective knowledge may severely impact the design, delivery, and quality of building construction.

On the other hand, reputed builders in Chennai have an in-house team of experts in the field of architecture, structural engineering, civil engineering, mechanical engineering, electrical engineering, plumbing, and landscaping. Top builders in Chennai also contract the services of reputed architectural firms, civil contractors, MEP contractors, and landscaping contractors to deliver projects with quality. Every part of design and engineering is optimized using advanced software. The collective knowledge of in-house experts and contracted agencies provide a value greater than the money paid for.

Use of Branded Quality Materials:

When you buy a home from a small-time builder, they may not provide full details of the brand and the type of materials used for building construction. You may have to rely on the words of the small-time builder especially when the building is already constructed and ready to move.

On the other hand, renowned builders in Chennai provide you with a detailed list of material specifications that they shall use in the building construction. These specifications are also captured in the construction agreement that you sign with the builder.

Some builders even allow customization of materials as per the buyer’s need at extra cost. However, this depends on the size of the project, the construction stage of the project, and the builder’s willingness to allow for material customization.

Hence, you can be assured of the make and quality of building materials used in the building construction by a reputed builder.

Choice of Properties:

Most of the small-time builders may not have more than 2 projects in their offerings. Some buyers may look for specific configurations such as 1 BHK, 2 BHK, 3 BHK, etc. Some buyers may have budget constraints. Some buyers may have location constraints. Some buyers may have vastu constraints. Some buyers may want on specific floors. Some buyers look for lifestyle amenities. A small-time builder may have limited choices to cater to your home-buying needs.

On the other hand, prominent builders in Chennai have at least 5-10 projects to offer to a home buyer. They shall have a wide range of choices in terms of property type (apartment/villa), configurations, locations, and pricing. Thus, you can choose your dream home from a pool of property offerings.

On-time Delivery of Projects:

Small-time builders may not advertise aggressively to attract homebuyers. They largely depend on the site banner ads and referrals for sales. They may not have a sales team to receive direct walk-ins, provide information about the project, address queries of the homebuyers, and assist in the home-buying process. When the small-time builders struggle to find homebuyers, they slow down the speed of building construction and delay the possession.

On the other hand, prominent builders in Chennai have access to construction loans from banks and NBFCs. In most cases, the construction progress may not depend on the sale of the project. And if the project is RERA registered, builders must deliver the project on-time to avoid paying penalties. This gives confidence to homebuyers to buy properties from the top property developers in Chennai.

Home Loan Assistance:

When you buy a property from a small-time builder, you may have to arrange for a home loan for yourselves. You shall have to shuttle between the builder and the banks, collecting and handing over the documents. Banks may rise several questions regarding the title, plan approvals, statutory approvals, NOCs, and handover that the builder may not have answers for.

On the other hand, the best builders in Chennai obtain Approved Project Financials (APF) from various banks and lending institutions. Home buyers simply have to quote the APF number at the time of home loan application. Banks and NBFCs undertake an extensive process of verifying title documents, plan approvals, statutory approvals, NOCs, and builder financials before approving a project. This is another advantage for the buyer as the document gets double-checked by an independent panel of advocates appointed by each bank and NBFC.

Post-Sales Service:

When you buy a home from a small-time builder, the relationship ends with the handover of the property. The snags and deficiencies in the civil, electrical, and plumbing works shall crop up after a few months of handover. Most small-time builders do not entertain repair and modification requests after handover.

On the other hand, some reputed developers attend to snags and deficiencies to earn goodwill and salvage their reputation.

Concierge Service:

Some of the best developers in Chennai also provide concierge services such as rental assistance so that investors can buy their properties and put them up for rent. They also provide resale assistance to homebuyers and investors if they want to sell or upgrade their lifestyle.

About Traventure Homes:

Traventure Homes is in the business of residential and commercial properties across Chennai since 2014. Our motto is to develop best-in-class properties and provide a pleasant home-buying experience. We have successfully handed over 55+ projects. Another 12 ongoing projects in Saligramam, Virugambakkam, and Perambur localities. There are also 2 commercial properties in Mogappair and Virugambakkam.

For more details, please send us an email at sales@traventurehomes.com or call us at 9150015000.

A home is a place where you unwind and relax after hectic work. A home is a place where positive vibes overflow. A home is a place where you get excited coming back and don’t get bored while you are inside. For this, home interior design plays a crucial role in giving you comfort, convenience, and peace. This blog gives you some tips on home decor and interior design ideas to make a house a home.

Home Decor Tips for Entrance Area / Foyer Area:

The home décor starts with the main entrance door. A wooden door carving instead of a plain door transforms your home with a magnificent appeal. A glass panel on either side of the entrance door adds grandeur to your home.

Home Decor Tips for Foyer Area:

A beautifully decorated foyer creates a good impression on your guests. Keep urli bowls filled with fresh flowers in the entrance area. Display brass figurines of Ganesha or Buddha or idols of your interest in the foyer area. You can also place a mirror in the foyer opposite the main door to add a welcome touch. However, if the apartment is north-facing or east-facing, it is advisable NOT to place a mirror in the foyer as it drives away positive vibes entering the home.

Home Decor Tips for Living Room:

The living room should be filled with vibrancy and liveliness to avoid boredom. A brass figurine or a water fountain in the corner spaces of the living room increases positive vibes. Hang wind chimes in the living room. It is a great way to enhance positive vibes. You can place a fish tank in the north or east direction of the living room.

The walls of the living room can be decorated with paintings of Tanjore, Madhubani, Kerala Murals, Kalamkari, and Patachitra. The paintings depict the cultures and ancient history of India. Revitalize the living room with indoor plants on plant shelves to add freshness.

Instead of modern sofas, antique dark-polished wooden furniture adds grace to the living room. Use contemporary fabrics with vibrant colors and floral patterns for the curtains. Place ethnic rugs in the seating area for an elegant look. Elevate your living room with weaved décor items and string arts.

Home Décor Tips for Bedroom:

Create a statement ceiling. Display a gallery wall of beautiful moments on the sides of the bedding. Place a vibrant artwork atop of upholstered headboard. These décor tips shall instantly soothe you to unwind after a day’s work.

Home Décor Tips for Balcony:

If you are an avid book reader or a music listener, you can have a single-seater hanging swing with a stand. You can have a hammock tied across the balcony grills if you love relaxing in the open. Décor your balcony with hanging potted flowering plants. Place green plants in the corner of the balconies.

Before you learn about RERA and how it empowers a homebuyer, you should understand the background that made the Government of India promulgate the Real Estate (Regulation and Development) Act, of 2016.

Why was RERA promulgated?

For many Indians, buying a home is a dream and involves lifetime savings. Most homebuyers stay in rented housing and avail up to 90% of the property value as a home loan to buy a property. Thus, homebuyers incur monthly rent and Pre-EMI till they get possession of the property to enjoy. When the possession gets delayed, the financial burden increases on the homebuyers.

Some promoters launched new projects to take money from homebuyers and invest in other projects. When promoters faced a cash crunch, they slowed construction progress which resulted in delayed possession.

Some promoters were modifying the architectural design and material specifications without taking consent from the homebuyers and without making any amendments to the construction agreement. Homebuyers were forced either to accept the modification by paying an extra amount or to cancel their allotment by paying a cancellation fee.

Some promoters do not get all approvals, NOCs, and clearances required for the project. Many homebuyers get to know only when a show cause notice is issued by the concerned authority for probable violation or deviation. By then, time and money are lost for the homebuyers.

In the urge to buy a property, several homebuyers do pay attention to the clauses on the delayed possession, late payment penalty charges, and cancellation fees that were drafted favorable to the promoters.

There was also no standard format across the industry for the clauses on the allotment conditions, cancellations, penalty charges, execution of the sale deed, and execution of the construction agreement. Hence, homebuyers had to engage legal experts for due diligence. 

When there arises a dispute between the promoters and the homebuyers, homebuyers were left lurching with long emotionally and financially draining legal battles. Homebuyers were having no authority whom they can approach for quick redressal of their concern/grievances.

This forced the Government of India to promulgate a Real Estate (Regulation and Development) Act, 2016, which was passed in the house of Parliament on March 10, 2016, effective from May 1, 2016.

How does RERA help buyers?

This Act helps bring the transparency to real estate sector, protecting the homebuyers from misleading advertisements, non-disclosure of property details, lopsided agreements, inordinate delays in the project handover, and resolving disputes between the homebuyers and the promoters in a time-bound manner.

When RERA is applicable for a project?

If the area of the land proposed for development exceeds 500 sq.m or if the number of apartments in all phases exceeds 8 units, then a promoter must register the project with the respective state authority for RERA.

RERA is applicable for layout developments, and residential as well as commercial property developments.

What documents need to be submitted for RERA authority?

To obtain a RERA registration number, a promoter must apply with the following details and documents to the concerned RERA authority.

1. Names, addresses, and photographs of the Promoter(s)
2. Firm/Company Registration Certificate
3. Names, addresses, and photographs of the Landowners (in case of Joint Venture)
4. Sale Deed, Patta, Encumbrance Certificate of the Land
5. Copy of Planning Permit
6. Copy of Building Plans certified by the Local Body / Authority
7. Copy of No Objection Certificate (NOC) from the Civic and Defense Establishments
8. Structural Stability Certificate
9. Geo-technical Report and Certificate
10. Details of the Plots / Flats / Villas signed by Architect / Project Engineer
11. Details of the Projects launched in the last five (5) years
12. Project Completion Date
13. Details of the dedicated Bank Account for the Project
14. Copies of Allotment Letter, Sale Deed, and Construction Agreement
15. Latitude and Longitude of the Project Location
16. Details of the Architect, Structural Engineer, Contractors
17. Details of the Amenities, Facilities, Infrastructure
18. Audited Balance Sheet of the Promoter for the preceding financial year

How RERA ensures on-time project handover?

Through this Act and the Rules framed thereof, every promoter must deposit at least seventy percent (70%) of money realized from the homebuyers in a separate bank account in a scheduled bank.

Promoters can withdraw the money from the bank account only on certification by a project engineer, an architect, and a chartered accountant that the withdrawal is in proportion to the percentage of completion of the project.

If there is a delay in the project handover due to unforeseen conditions such as labor unavailability, material unavailability, war, earthquake, etc, Promoters can enforce the force majeure clause and can apply for an extension of the project completion date from the concerned RERA authority.

Thus, RERA ensures the interest of the homebuyer for the timely handover of the project.

How RERA ensures transparency and uniformity in the Carpet Area of the Property?

Before RERA defined Carpet Area, there was a practice to include areas that were exclusively meant for the homebuyer such as kitchens, living rooms, bedrooms, toilets, exclusive private terraces, exclusive balconies, exclusive staircase, and service utility, and to exclude external walls and internal partition walls of the property.

To bring uniformity across the real estate sector in India, RERA defined Carpet Area as the net usable floor area of a villa/apartment including the internal partition walls of the property but excluding external walls, exclusive private terraces, exclusive balconies, exclusive staircase, and service utility. These areas must be shown separately along with the RERA carpet area for transparency.

Thus, at the time of application for RERA registration, Promoters must declare the carpet area of each villa/apartment along with the area of the exclusive balcony/verandah/open terrace areas for sale, the UDS area, and the Number of Car Parking for each property.

Tamil Nadu Real Estate Regulatory Authority (TN RERA):

As revenue land is a state subject as per List II of the Seventh Schedule in the Constitution of India, every State has to frame rules as per provisions of the Real Estate (Regulation & Development) Act, 2016, and notify the same.

The Government of Tamil Nadu vide G.O.Ms.No.112, Housing & Urban Development Department, dated 22.06.2017 has approved the Tamil Nadu Real Estate (Regulation & Development) Rules, 2017 to carry out the provisions of Real Estate (Regulation & Development) Act, 2016.

How to check RERA approval for projects in Tamil Nadu?

One can access the details of TN RERA registered projects, RERA rejected projects, the list of registered real estate agents, various Forms to raise and monitor complaints, judgments of the appellate tribunal, etc through https://www.rera.tn.gov.in/

Happy homebuying!