Real Estate Sector Complexities - Taxation & Regulatory Issues!

Module Duration:
220 minutes (comprising of two episodes)

Module background:
Our world is not going to be the same once it emerges back from the COVID-19 pandemic. Many sectors are likely to face long term impacts and real estate is no exception. Indian real estate sector has already been under pressure for many years now on the back of sluggish demand, massive difficulties in procuring funds for projects, regulatory changes like Real Estate (Regulation and Development) Act, 2016, tax uncertainties (both from a direct & indirect tax perspective) and demonetization.

Furthermore, from India Inc. perspective, the lockdown has ended up promoting 'Work from Home' (WFH) culture, with employers seeing the situation as a blessing in disguise to save on real estate rentals as well as travel and commuting time of their employees. Owing to this, it is said that this will lead to a slump in demand for commercial space and reduction in their rental yields is likely to last even beyond the pandemic, which may have a huge and an irreversible long-term impact on the real estate business. A combined impact of the above would mean mounting inventories and reduction in realisations, which may lead to tremendous hardships for the sector for some time to come.

What shall the module cover?
Against this backdrop, Taxsutra presents a unique module on “Scrutinizing Complexities Surrounding Real Estate Sector – Taxation, Stamp Duty & Regulatory Issues” in association with premier law firm Lakshmikumaran & Sridharan (L&S). In this module, Legal Stalwart Mr. V. Lakshmikumaran (Founder and Managing Partner, L&S), Mr. S. Vasudevan (Executive Partner, Direct Tax), Mr. Kapil Sharma (Partner, Indirect Taxes) & Mr. Kunal Arora (Joint Partner, Real Estate Regulatory) have elaborated on several ambiguities surrounding issues related to the real estate sector, which includes the following:

• Impact of COVID-19 – Regulatory and tax issues relating to delays, breach and renegotiation of contract terms, unsold inventory, etc.
• Tax and regulatory issues involved in business restructuring, development projects, slump sale and other transactions in real estate 
• Models adopted for the development of complexes and plots covering Area Sharing/Revenue Sharing, Joint Development Agreements, Transfer of Development Rights (TDRs)
• Maintenance & Leasing Arrangements – controversies surrounding distinct and bundled supplies
• Sector specific tax deductions, MAT planning and concessional corporate tax rate