Gents ,

Please help me to work out the following basic querries ?

How shall the total premium / Gain be worked out for resale ?

There is an increase in BSP with increase in PSF rate/s and the difference of the two BSP's makes the Premium.

What happens to the other price elements like Service tax , VAT , stamp duty & regn ? Shall they also increase with increase in BSP and their difference add up to the Premium or they shall be left as constant in the resale price ?

What about PLC's , Car Parking , IFMS etc ? I mean if the builder increases the PLC's / Car Parking / IFMS wont the dirrerence add up to the Premium as well ? I remember that sometime back when i received a direct offer of resale from as seller he has charged the difference of prices for car parking , PLC's etc to the Premium as the builder had increased the same subsequently.

Shall appreciate clarification for this.

Thanks in anticipation.
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  • Hi Omshanti69,

    The total premium can be calculated by subtracting the asked BSP from login BSP as you would get appreciation on only BSP not on other charges. Other charges would be same as paid by you, no appreciation on that amount it would be at actuals,
    Other charges constitute of EDC,IDC,FFC,Club,Parking,IFMS.
    The said things are applicable for a resale of under construction property but if you compare it with already registered property then Service tax, VAT as applicable and Stamp Duty and registry doesn't fetch anything.
    It depends upon the negotiation skill how you negotiate on PLC's you have to pay the premium for Location PLC such as corner or some facing but not for car parking and plc you can see the ledger account and negotiate acordingly.
    CommentQuote
  • Originally Posted by jattin
    Hi Omshanti69,

    The total premium can be calculated by subtracting the asked BSP from login BSP as you would get appreciation on only BSP not on other charges. Other charges would be same as paid by you, no appreciation on that amount it would be at actuals,
    Other charges constitute of EDC,IDC,FFC,Club,Parking,IFMS.
    The said things are applicable for a resale of under construction property but if you compare it with already registered property then Service tax, VAT as applicable and Stamp Duty and registry doesn't fetch anything.
    It depends upon the negotiation skill how you negotiate on PLC's you have to pay the premium for Location PLC such as corner or some facing but not for car parking and plc you can see the ledger account and negotiate acordingly.


    Thanks jatin ,

    That was quite useful.

    So if the property is registered then buyer shall pay VAT , Service Tax then prevailing rates.

    There shall again be no sepatate Premium on these taxes ie VAT / Service Taxes upon selling ; other than the premium on BSP.

    There shall be no premium on Registartion and Stamp duly.

    Please let me know if i am correct in understanding above.

    I have accordingly corrected my Premium Calculation in the enclosed attachment and request your review for confirmation.

    In my case i have luxury specifications apartment and builder included its cost in the BSP itself by increasing the BSP by 250 INR.

    So i hope that i shall not have diffucality negotiating premium over this.

    Any idea how much stamp duty and registration charges shall be ? Time is nearing and need to prepare in advance .......else distress sale.......

    Thanks in anticipation ...:)
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  • Originally Posted by omshanti69
    Thanks jatin ,

    That was quite useful.Now i understand that for underconstruction property there shall be no separate premium on VAT & Service Tax.But if the property is registered then premium on service tax , VAT is applicable.

    For registered property whereas premium on VAT & Service Charge shall apply , there shall be no premium on Registartion and Stamp duly.

    Please let me know if i am correct.

    Any idea how much stamp duty and registration charges sahall be ?

    Yup Once a property is registered you can ask for the prevalent price irrespective of the what you paid it also depends on the circle rates as well and the stamp duty and registration charges should be calculated per minimum circle rate and it depends on the region you are investing as i know about noida its 5% for Women, 6% for Men and women, and 7% for Men. Hope this would resolve your query.
    CommentQuote
  • Originally Posted by omshanti69
    Gents ,

    Please help me to work out the following basic querries ?

    How shall the total premium / Gain be worked out for resale ?

    There is an increase in BSP with increase in PSF rate/s and the difference of the two BSP's makes the Premium.

    What happens to the other price elements like Service tax , VAT , stamp duty & regn ? Shall they also increase with increase in BSP and their difference add up to the Premium or they shall be left as constant in the resale price ?

    What about PLC's , Car Parking , IFMS etc ? I mean if the builder increases the PLC's / Car Parking / IFMS wont the dirrerence add up to the Premium as well ? I remember that sometime back when i received a direct offer of resale from as seller he has charged the difference of prices for car parking , PLC's etc to the Premium as the builder had increased the same subsequently.

    Shall appreciate clarification for this.

    Thanks in anticipation.



    This might be of some help -


    How To Calculate ROI For Real Estate Investments

    Also, do take a look at ROI Calculators on various RE Sale/purchase web sites/Broker websites .
    CommentQuote
  • Originally Posted by jattin
    Yup Once a property is registered you can ask for the prevalent price irrespective of the what you paid it also depends on the circle rates as well and the stamp duty and registration charges should be calculated per minimum circle rate and it depends on the region you are investing as i know about noida its 5% for Women, 6% for Men and women, and 7% for Men. Hope this would resolve your query.


    so means that premium on VAT / S.Tax for registered property shall be the difference between tax paid by you upon booking and what is applicable at the time of sales .....and not an increase in relation/ proportion to increase of BSP of building upon resale.....so a small amount only

    I was doing big mistake by applying premium on taxes also in same proportion as premium on BSP...
    CommentQuote
  • Originally Posted by MANOJa

    This might be of some help -


    How To Calculate ROI For Real Estate Investments

    Also, do take a look at ROI Calculators on various RE Sale/purchase web sites/Broker websites .


    thanks manojbhai....hope this should serve the purpose:)
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