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Stamp Duty and Registration GST on Properties

Last updated: June 2 2021
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  • #11

    #11

    Re : Stamp Duty and Registration GST on Properties

    RR and st duty registration charges 2015

    Revised Stamp Duty and Ready Reckoner Rates for Maharashtra in 2015 On Tuesday 31st December, Maharashtra govt announced the revised stamp duty and ready reckoner rates for 2015.These new rates will be used in effect from January 2015 for calculating minimum registration and stamp duty charges while registering property and these changes will tremendously hike in the property prices.

    The government has decided that on lavish apartments with modern amenities like swimming pool, helipads and ceiling higher than 9 ft will need to pay up to 50% more stamp duty charges than normal regular apartments and also apartments that surpass 4,000 sq.mt or one acre of plot with amenities like swimming pool, club house and fitness center will need to pay additional 15%. This figure is over and above the up to 20% increase in the ready reckoner rates.

    For example a flat in Bandra that surpass 4,000 sq.mt that would cost 10 cr in 2013 with stamp duty 50 lakhs then the same flat in 2015 will cost 12 Cr approx with stamp duty 60 lakhs (with 20% increase in the ready reckoner rates). If the same flat is having amenities like swimming pool and club house then the same flat will cost 13.85 cr with stamp duty 69 lakhs.

    As per real estate experts, the government has smartly doubled the ready reckoner rates for super-luxury properties and bungalows which surpass 4,000 sq.mtr or one acre. For post 20% hike, Super-Luxury properties in Mumbai, RR rates may have increased to say 25,000 per sq.ft. So, for a luxury building with additional amenities, the property value will be hiked by an additional of 15% over and above the average of 20%. Hence, the RR rate will set up to Rs 28,750 per sq ft. Now, the stamp duty must be paid on the property value of Rs 28,750 a sq ft.

    These new RR rates will also effected on luxury redevelopment projects. In the city construction cost for RCC buildings risen 32% i.e. from Rs. 19,600 sq.mtr (2013 yr) to Rs. 25,500 sq.mtr (2014 yr). In the suburbs it has risen 36% i.e. Rs 17,800 sq.mtr (2013 yr) to Rs 24,000 sq.mtr (2014 yr).

    The government asked developers to pay stamp duty on the refundable deposit given to tenants for redeveloping a plot. If the property value falls below the RR rate, the stamp duty will be computed as per the land plus construction cost (LCC) method.When the stamp duty is computed by this method, tenants of 20-year-plus buildings will not get the benefit of even 5% depreciation of the property's value when they file their income-tax returns.
    Since 2003, This is the first time the RR rates have increased for super-luxury properties and it is limited to luxury projects only. If the developer pays all the charges, the redevelopment schemes will not be effected as the hike in construction cost and stamp duty is not much.

    Apartment sales have been dropped already in the past years, Hence the new hike in the RR Rates with further affect super-luxury properties and real estate market.

    The increase in RR rates has multiple effects on buyer like:

    1) 5% stamp duty
    2) Registration fee of 1%
    3) Service tax of 3%
    4) Local body tax of 1%
    5) MVAT of 1%.

    Hence, a buyer will now have to pay a total of 11% as tax to the government. For example, for a flat of Rs. 10,000 per sq ft, the buyer will have to pay Rs 11,009 to the government, which is going to be body blow to the already limping real estate fraternity.

    It is obviously a no-brainier that this extra burden of stamp duty levied by the relevant authorities will set the cat amongst the pigeons as far as the property developers are concerned.

    Recieved this from lawyer on whatsapp

    Reasons:-


    This news is false what I have received in What's up. some one has change the year from 2014 to 2015 and forwarding to every one.
    Revised Stamp Duty and Ready Reckoner Rates for Maharashtra in 2014
    Last edited March 25 2015, 07:44 PM.

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    • #12

      #12

      Re : Stamp Duty and Registration GST on Properties

      Example
      How the fee will be charged
      If a person owns a 1,000 square feet flat, and after redevelopment he gets a 1,500 square feet flat, he will be charged the fee based on the construction cost for the existing 1,000 square feet, as per the old rates. On the additional 500 square feet he has received, the government will be charging him on the new ready reckoner rates. -
      See more at: Stamp duty and registration rates to rise by 20 per cent - News

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      • #13

        #13

        Re : Stamp Duty and Registration GST on Properties

        @yogeshraja

        How much you think is it going to be true for 2015?

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        • #14

          #14

          Re : Stamp Duty and Registration GST on Properties

          That why stamp duty and registration is very important to do in under construction.
          Nine flats sold to 18 people in Khar

          Comment

          • #15

            #15

            Re : Stamp Duty and Registration GST on Properties

            E-payment of TDS on sale of property

            Comment

            • #16

              #16

              Re : Stamp Duty and Registration GST on Properties

              Ready reckoner rates for Navi Mumbai 2013

              Comment

              • #17

                #17

                Re : Stamp Duty and Registration GST on Properties

                e-Stamping Introduction

                E-stamping is a computer based application and a secured electronic way of stamping documents. The prevailing system of physical stamp paper/franking is being replaced by E-stamping system.

                Stock Holding Corporation of India Limited (SHCIL) is the only CRA appointed by the Government of India. Central Record Keeping Agency is responsible for User Registration, Imprest Balance Administration and overall E-Stamping Application Operations and Maintenance. CRA will appoint ACC’s and Traveling Vendors who will issue certificates to the clients at their counters.

                SHCIL has been promoted by All India Public Financial Institutions and Insurance Majors. SHCIL is known for its Security, Integrity, wide network and focus on techonology


                Stamping Queries

                Q. What is e-Stamping?
                A. e-Stamping is a computer based application and a secured electronic way of stamping documents. It’s an electronic way of paying stamp duty to the Government.

                Q. What are the features of E-Stamping :
                A.
                On-line Stamp Duty Certificate can be generated within minutes
                Stamp Certificate generated is tamper proof
                Its a secured electronic payment gateway to the Government
                Authenticity of the Certificate can be checked through its inquiry module.
                Stamp Certificate generated has a Unique Identification Number (UIN).
                Specific denomination is not required.

                Q. What are the benefits of E-Stamping?
                A.
                Easy accessibility and faster processing
                Security
                Cost savings
                User friendly
                Hassle free maintenance

                Q. What is Unquie Identification Number (UIN) ?
                A. UIN is a Stamp Certificate number mentioned on the Stamp Certificate. Anybody, having the Unique Identification Number, can check the authenticity of the Certificate through SHCIL- e-Stamping Home :: :: :: :: :: :: .

                Q. What is a CRA?
                A. CRA stands for Central Record Keeping Agency. STOCK HOLDING CORPORATION OF INDIA LIMITED (SHCIL) is the only CRA appointed by the Government of India.
                Q. What is the role of CRA?
                A. The Central Record Keeping Agency is responsible for User Registration, Imprest Balance Administration and overall E-Stamping Application Operations and Maintenance. CRA will appoint ACC’s and Travelling Vendors who will issue Certificates to the clients at their counters.

                Q. What do you mean by ACC?
                A. ACC menas Authorised Collection Centre (ACC). Its an agent appointed by SHCIL. ACC is the intermediary between the CRA and Stamp Duty payer.

                Q. Who can become ACCs?
                A.
                Bank & Financial Institutions
                Law firms,
                Chartered Accountant firms
                Professionals

                Q. What is Registration process of ACC?
                A. ACC should submit the application form along with the necessary proofs as mentioned in the application form. ACCs need to pay a nominal registeration fee and interest free security deposit. ACCs need to maintain a running imprest balance.

                Q. How will I get a Stamp Certificate?
                A. The client has to approach an ACC appointed by SHCIL and fill up the application form as prescribed in the e-Stamping system. Stamp Certificate is generated only after realisation of funds.

                Q. When will I get the Stamp Certificate from ACC?
                A. After submitting a duly filled application form, the ACC will enter the details into the system and a Stamp Certificate would be generated immediately in case of cash and in case of Cheque/ Demand Draft/ Payorder only after realisation of funds.

                Q. After generating the Certificate, can I cancel the Stamp Certificate?
                A. For cancellation you need to get in touch with the Competent Authority at the Stamp Office appointed by the State Government.

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                • #18

                  #18

                  Re : Stamp Duty and Registration GST on Properties

                  Stamp Duty - Latest happenings

                  Stamp Duty - Latest happenings

                  The age-old system of charging stamp duty based on the ready reckoner will be obsolete in a matter of months.

                  The inspector-general of stamps and registration has submitted a report to the state government recommending that the value of property be henceforth calculated on the basis of several tangible locational advantages and disadvantages that actually contribute to its value in the real estate market.

                  Ramrao Shingare, who prepared his draft with the help of the Geographic Information System, said, “No scientific methodology was available so farto decide a property’s real value. We felt the value of a piece of property should be based on the availability of amenities, its distance from the railway station, the scope for further development, status of title and floor-space index, among other factors. If we take all these aspects into consideration and modify the rules accordingly, we can mobilise an additional Rs 2,000 crore from stamp duty.’’ Shingare has identified more than a dozen issues which will decide the real value of property.


                  For decades, there were no specific rules for recovery of stamp duty on real estate transactions. As a result, buyers and sellers found themselves at the mercy of revenue officials.


                  Then, stamp duty used to be charged on the basis of sale value in the agreement. Taking cognisance of large-scale irregularities in the system of charging stamp duty, the revenue department introduced the concept of “ready reckoner” in 1989.

                  The value of a property was based on transactions conducted in the previous year. The city was divided into several zones and prices in the previous year formed the base for deciding the stamp duty in the next year. The government used to follow the practice of declaring stamp duty rates on January 1 every year.

                  A senior revenue department official said as it was not a foolproof system, real estate transactions in the entire zone were charged the same duty irrespective of the real value of the property. “For instance, whether a property was located near a five-star hotel or a slum in the south Mumbai zone, the stamp duty was identical,’’ the official added.

                  It was felt that with rapid urbanisation and setting up of special economic zones, business townships and irrigation projects, besides the proliferation of malls and multiplexes, the real value of properties varied according to the area.

                  “The system of deciding stamp duty on the basis of the ready reckoner appeared faulty as it did not take into consideration these factors,’’ the official said.

                  Further, the official pointed out that if an area was developed or granted non-agriculture status for development, then the rate of stamp duty in the entire zone was identical, irrespective of the fact that the entire zone had been developed. “In such cases, it was found that for undeveloped zones, the buyer had to pay stamp duty on a par with the developed zone,’’ he added.

                  Under such circumstances, the official said it was felt that the system of deciding the value of a property should be foolproof. “If we are able to decide the real market value of the property, it will help add revenue to the state exchequer. With this aim in view, we have drafted the new microplanning project to ensure that all properties are valued properly and stamp duty charged accordingly,’’ he said.

                  THE FIFTEEN PARAMETERS THAT WILL DECIDE STAMP DUTY
                  The government is gearing up to put in place new parameters for evaluation of property. The stamp duty that you pay during sale or transfer of property will be determined by these new rules. The inspector-general of stamps and registration has submitted his report to the state government and here are 15 important new parameters his office has recommended for evaluation of property


                  DISTANCE FROM CONVENIENCES
                  Your property may be deemed more valuable if it is close to a railway station, a bus stop, a market or a multiplex; conversely, its value may go down if it is located more than 3 km from any of these


                  DISTANCE FROM THE SEA
                  Be ready to pay more during transfer of a property if it is close to the seashore/coastline


                  DISTANCE FROM CREMATORIA, POLLUTING UNITS
                  The closer you are to the cemetery, crematorium, polluting units and railway tracks, the lesser you may have to pay as stamp duty


                  NATURE OF TITLE
                  The value of the property goes up if its title is clear; if the title is disputed, then its value may be less


                  DISTANCE FROM SCHOOLS, GARDENS
                  Be prepared to pay more as stamp duty if the property is next to a school or a garden


                  AVAILABILITY OF AMENITIES
                  Uninterrupted supply of power and water and proper sewerage facilities may mean your property has greater value than a property that lacks any of these facilities


                  FSI
                  The value of your property, in all probability, will depend on the floor-space index you enjoy; be ready to shell out more stamp duty if the FSI is more



                  LEVEL LAND
                  Your property may be more valuable in the government’s eyes if it is on level land instead of being located in a hilly area



                  DEBT
                  If the property is free of any debt, it may attract more stamp duty



                  APPROACH ROADS
                  Be ready to shell out more stamp duty if the property has proper approach roads leading to it



                  CLEAR VIEW
                  Even view matters; property may be deemed more valuable if it gives you a clear view of surroundings



                  NATURE OF PROPERTY
                  An ownership property may attract more stamp duty during transfer or sale; a leasehold property’s value may be less



                  REGULAR SHAPE
                  A property may attract more stamp duty if its length and breadth are similar; its value may be less if it has an irregular shape (for instance, triangular)



                  AGRICULTURAL PROPERTY
                  The value of a property may be deemed to be more if it is on non-agricultural land



                  SIZE OF THE PROPERTY
                  A property standing on a smaller plot may be deemed to be more valuable than a property on a bigger plot

                  </H3>

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                  • #19

                    #19

                    Re : Stamp Duty and Registration GST on Properties

                    Originally posted by yogeshraja View Post
                    Ready reckoner rates for Navi Mumbai 2013
                    Hii Yogesh,

                    Do you also have the rates for Mira-bhayander? If yes, can you please share? Thanks a lot in advance..

                    Comment

                    • #20

                      #20

                      Re : Stamp Duty and Registration GST on Properties

                      Originally posted by 1stbuy View Post
                      Hii Yogesh,

                      Do you also have the rates for Mira-bhayander? If yes, can you please share? Thanks a lot in advance..
                      Will forward you incase I find rates for Mira-bhayander..

                      Comment

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