Monday, September 12, 2016

Compliances - A Developer must Adhere to

Compliance are very important to Initiate, Continue & Complete any project. Some of these can also be called as approvals required for a project.

Rules governing Land & Project vary from State to State and there are no uniform laws, but still we have tried to list down broadly some, which are more or less common, with slight variation, to all states. Time required for each  compliance also vary from state to state. It depends on a number of factors like how strong is follow up, how fast requisite documentation is completed, when the applicable fees & charges are paid & so on.

Project compliance

1.   Registration Of Land
When you initiate a project land is purchased from somebody. So one of the first steps is to get land registered in your, means your company’s name.

2.   Change Of Land Use
Generally you buy agricultural land. Purpose is to use it for developing some residential or a commercial project or a combination of both. So you have to get its use changed from agricultural to the type of project you intend to do from concerned authorities.

3.   Group Housing Approval By Ministry of Housing in State
State Ministry of Housing under the instructions of Governor issues the approval signed by some secretary level official. This is one of the very important documents.

4.   Site Survey Plan
Survey of site from some Professionally Accredited agency. The purpose of this survey in addition to other things is to check the presence of high tension wires near project site, any government water or sewerage line going beneath the project site and a whole of other information. This report is submitted to Development Authority.

5.   Master Plan
It is a site map containing just the setbacks, outer boundaries of project site. Purpose of this map is to calculate net area available for construction. This again is submitted to development authorities. 

6.   Lease Deed
In certain states including Rajasthan , Parts of U.P. , Parts of M.P. still government doesn’t register land in the name of buyer but issues Pattas, which is a 99 Years Lease in favor of owner. These governments are in the process of regularizing land documents and once that is complete these pattas will be converted into registries. But otherwise these Pattas are bankable documents.

7.   Registration of Pattas
These pattas thus issued are duly registered in the office of Registrar by paying the applicable Stamp Duty.

8.   Environment, Pollution & Water Clearance
This is one of the very important clearance for a project. If the project Plot size is more than 20000 Sq. Mtr. Than the clearance is from center otherwise it is by state Ministry of Environment. If it is to be by center than it takes around 6 months to get and if by state it takes around 3 months.

9.       Submission Drawings/Layout Plans
The Final Drawings are cleared by Planning Committee chaired by Chairman of Development Authority. Once the Layout plans are approved they are issued to Developer for construction. Before issuing these Plans Development Body imposes certain charges on Developer. Developer pays the Charges and gets the plans issued.

Statutory Compliance

Then there are Statutory Compliance . Though there is a long list of these but some of the most important ones are being listed below :

1.   TDS
TDS is one of the most important statutory compliance. You have to deposit, with I.T. department, the TDS you deduct in previous month and then file the return accordingly on monthly basis.

2.   Service Tax
You have to deposit Service Tax with Department on monthly basis and file a return of the same also every month.

3.   Annual Report
Also called “Balance Sheet” . This has to be filed every year for the business transacted in previous year.

4.   Minutes Book
This is a book which is to be regularly maintained by accounts department to record minutes of all board meetings held.


   Violation in any of the these attracts heavy penalties.    

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