The Union Government should consider waiving service tax on houses in the non-luxury segment, especially for the lower middle classes and low-income groups in the society, according to C. Sekhara Reddy, President of the AP Chapter of the Confederation of Real Estate Developers’ Associations of India (Credai). He was speaking at the inauguration of the Kakinada chapter of the Credai here on Sunday.
He said affordable housing for the low-income groups was the objective of the Union Government and therefore service tax should be waived. He said labour cess of one per cent should also be levied only after the sale of apartments, and not at the stage of plan approval. He said the problem would be taken to the notice of the AP Government and efforts would be made to resolve the issue.
He said Credai, AP chapter, is making efforts to arrange skill development programme for 10,000 workers in the construction field in Andhra Pradesh.
The entire expense would be borne by the National Skill Development Corporation. He said Credai also has a consumer grievance cell and apartment buyers could take their problems to the cell and get them resolved. It would obviate the need for litigation.
Code of conduct
He urged builders to stick to the code of conduct formulated by Credai and deliver quality products to customers. “Our ultimate aim is to provide quality houses and apartments to our customers at affordable rates,” he said. He said the Andhra Pradesh Government had agreed in principle to do away with the need for obtaining permissions and to lay down construction norms which the builders should adhere to.
The Chief Minister had given a promise to that effect and he has constituted a committee for follow-up action. Sekhara Reddy thanked the AP Government for allotting exclusive sand reaches to Credai in the State. S. S. Balaram, the President of the Kakinada chapter, promised that local builders would adhere to the code of conduct laid down by the Credai and build quality houses and apartments for customers.