In an earlier blog, it was shared that 48 key Statutory Acts are directly applicable (for 13 key functions in the real estate & hospitality Industry). In addition, there are 34 statutory Acts indirectly relevant through supporting functions like corporate Finance, Corporate Services, HR, etc.
The number &
provisions of Statutory Acts and activities listed in this blog are in the
context of Indian Industry, and readers in countries other than India can
modify these to meet similar type requirements of each country.
For these 13
functions, eight types of statutory processes having 113 associated statutory
activities have been identified as applicable.
For
the Design of the MEP function, four types of statutory processes (out of 5
types) are directly relevant, with ten key statutory activities (out of 113 identified) required to be performed
as summarised below.
· Process1: Meeting statutory and taxation obligations; Activities
=2 as below
1. Publishing on web
site RERA, Project wise details (The RERA Act,2016)
2. Summary of
inward/outward supplies along with payment of tax (The GST Act,2017) GST
·
Process 2: Obtaining Licenses, approvals, and
maintaining statutory records w.r.t Statutory Acts; Activities =3 as
below
1. Complying with
prescribed provisions of all applicable Acts & associated rules
2. Maintaining statutory
prescribed records
3. Coordinating statutory
inspections of business premises & documents
·
Process 3: Complying with IGST matters; Activities
=4
1. Filing returns
towards inward/outward supply of goods and services, ITC -input tax credit availed,
output tax payable under section 35(1)
2. Complying with
requirements w.r.t. imported goods or services under GST rule 56(1)
3. Complying with
requirements w.r.t GST payable, collected, paid, and ITC availed under GST rule
56(4)
4. Complying with
requirements w.r.t maintaining details of suppliers & customers with their
GSTN registration number under GST rule 56(5)
·
Process 4: Deducting Income tax on services-TDS; Activities
=1
1. Computing the TDS
amount on service charges as per applicable income tax rules & deduction of
the same from dues payable to the service provider/consultant
Given below is
the list of 14 activities that can adversely impact
business is as below (if these are performed unethically or without
proper diligence)
Statutory
Process 1: Meeting statutory regulations and tax obligations and filing various
key returns on the scheduled time =6
·
Obtain “certification
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
·
Bribe statutory
agencies to obtain a “Completion Certificate” even before construction is
completed to customers and realize payments through construction areas not yet
ready for possession.
·
Publish on website
project details that are inaccurate vis a vis RERA-Real Estate (Regulation
and Development) Act 2016 (inputs to Architect team)
·
Non-timely 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 Central Goods and Service Tax
Act,2017.
·
File returns inaccurately
·
File returns
non-timely
MEP teams usually give details /inputs
for the above to Finance & accounts or the legal team for meeting statutory
requirements.
Statutory
Process 2: Obtaining Licenses, approvals, and maintaining statutory records
w.r.t Acts=2
·
Bribe the
statutory inspectors during their visits to the construction site to validate
that construction conforms to statutory approvals
· Not maintain or maintain and submit inaccurate
statutory records and bribe visiting Statutory officials.
.
Statutory
Process 3: Complying with IGST matters=5
· Comply with
requirements w. r. t. Imported goods or services under GST rule 56(1)
· Comply with
requirements w. r. t. GST payable, collected, paid, and ITC availed under GST
rule 56(4)
·
Comply with requirements w. r. t maintaining details of suppliers
and customers with their GSTN registration number under GST rule 56(5)-
· Maintain record
vis-à-vis inward or outward supply of MEP, design services, or inward collection of
BOQ sample materials procured which are either incomplete or incorrect
vis-à-vis amounts chargeable to GST or rate of GST or both
MEP teams usually give details /inputs for the above to Finance
& accounts or the legal team for meeting statutory requirements.
Statutory
Process 4: Deducting TDS-services=1
Handbook of the
author
You can read more about these 14
activities that can adversely impact business in Annexures 20B &21B and Chapter
3 of the author’s handbook ETHICS in the real estate and hospitality
industry, Volume 1- Architectural, Interior design, and MEP services. “