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- The reg.dept is asking builders to pay 8 % against the construction agreement from Jan 2013.Any agreement signed before dec, only uds can be done.The builders are refusing to do so & asked govt to reduce the same to 2%,which the govt is not accepting.So the reg.has come to stand still at this stage with regard to apartments.Clear pic will emerge soon!!!CommentQuote0Flag
- As TDS of 1 % is proposed to be levied w.e.f 01.06.2013 for transaction above 50 lacs, SRO will admit the paper only when 1% is paid first. This 1% is on Total flat cost ( flat is taken here for explanation ) including construction cost and UDS land cost .when such TDS is paid on Total cost to CE dept, State SRO too should obviously collect stamp duty on Total value of flat. Because VAT credit is taken on input materials and ST is payable on 30% value .
As all these things are interrelated to compute and arrive at TDS,ST,VAT,etc in various stages, STAMP DUTY will be calculated on Total Agreement value or else Builders and Buyers will escape the TDS bracket by splitting the figure conveniently .
For land sale above 50 lacs, 1% TDS is collecetd and 7% stamp duty is collected with 1% Regn fee . For Flats, as we have two agreements namely Construction agreement ( authorizing the builder to construct ) and sale of UDS separately, Many builders in TN were avoiding the sales tax whereas Raheja when constructed flats in RA Puram opp to Iyappan Temple way back in 1994, Sales tax was collecetd on Total value .
This is now being narrowed down for uniform level especially after making compulsory Regn of Agreement,POA etc where the rates will be known to SRO wheras in erstwhile scenario, Construction Agrement was hidden totally.
Earlier, TN Govt passed bill to levy 1% on Construction Agreement if the land has been purchased on outright basis . 8% is logically correct since land would have bought from one seller by paying full stamp duty by Builder and agains resold as UDS at increased price to several buyers.CommentQuote0Flag
- This is really bad. In USA, it is only 3% and people are complaining. We already pay 10 percent for registration.CommentQuote0Flag