For the 13 key functions applicable to the real estate & hospitality industry (as listed by the author in his book), 48 Statutory Acts have been identified as directly applicable and 34 Acts indirectly applicable through supporting functions like corporate finance, Corporate Services, HR, etc.

Further, for these 13 functions, 8 types of statutory processes having 113 key statutory activities have been identified as applicable in the Indian context.

For the Design of Architects function,5 types of statutory processes are directly relevant with 46 key statutory activities (out of 113 identified) are required to be performed as summarised below

·       Meeting RERA Compliances =4

·       Meeting statutory regulations and taxation obligations =2

·       Obtaining Licenses, approvals, and maintaining statutory records w.r.t Statutory Acts =24

·       Complying with IGST matters =13

·       Deducting Income tax on services-TDS =3

The list of 46 activities mentioned above is given in the book of the author and the website https://www.ethicalprocesses.com

Given below is the list of 18 activities that can adversely impact business is as below (if these are performed without proper diligence or are unethical)

Statutory Process 1: Meeting RERA Compliances related =4 key activities

·       Commence construction without obtaining sanction plan approvals from competent authorities    

·       Obtain “certificate for adherence to statutory/approved sanctioned plans and project specifications and National Building code” through unfair means in case actual construction does not comply with sanctioned plans    

·       Submit inaccurate deed of declaration tabulating unit-wise areas constructed and bribing statutory agencies    

·       Bribe statutory agencies for obtaining a “completion certificate” even before construction is complete to dupe customers and realize payments through constructions areas not yet ready for possession.   

Statutory Process 2: Meeting statutory regulations and tax obligations and filing various key returns on the scheduled time = 4 key activities

·       Publish inaccurately on the website, project details vis-à-vis units booked, units under construction, list of approvals taken and pending, and the status of the project as prescribed in the RERA-Real Estate (Regulation and Development) Act 2016 

·       Inaccurate capture of details vis-à-vis summary return of outward and inward supplies and services along with payment of tax compliance in respect of the Goods and Service Tax Act,2017. 

·       File returns inaccurately

·       File returns non-timely

Statutory Process 3: Obtaining Licenses, approvals, and maintaining statutory records w.r.t Acts = 4 key activities

·       Commence and Continue construction without obtaining such approvals/renewals as one or more (15 sub-activities identified and listed in the book).

·       Not comply with prescribed statutory procedures and bribing Statutory officials for obtaining such licenses /approvals.

·       Bribe the statutory inspectors during their visits to the construction site, to validate those constructions conforms to statutory approvals

·       Not maintain or maintain and submit inaccurate statutory records and bribe visiting Statutory officials.

Statutory Process 4: Complying with IGST matters = 5 key activities

·       Maintain record vis-à-vis inward or outward supply of local architectural services or inward supply of BOQ sample materials procured which are either incomplete or incorrect vis-à-vis amounts chargeable to GST or rate of GST or both  

·       Maintain incomplete or incorrect records vis-à-vis inward supply of overseas consultant services or inward imported supply of BOQ sample materials procured from vendors  

·       Not comply with requirements w. r. t. GST payable, collected, paid and ITC availed under GST rules for local consultants.

In case of overseas consultancy services received, incorrect computation of chargeable gross invoice amount on which GST is applicable (based on the availability or non-availability of PAN with overseas consultant entity and overseas consultant’s annual billing amount to us as a client).

·       Not-Comply with requirements w. r. t maintaining details of suppliers and customers with their GSTN registration number  

·       File required returns non-timely vis-à-vis applicable sections of the Act    

Statutory Process 5: Deducting TDS-services=1 key activity

·       Deduction of TDS at a rate different than prescribed for local consultants.

Handbook of the author 

You can read more about the 18 key activities that can adversely impact business in Chapter 1 of my handbook “ETHICS in the real estate and hospitality industry, Volume 1- Architectural, Interior design, and MEP services”