Premium property to get dearer with no cap on registration fee
A flat 1% of the registration fee will be levied
Mar 11, 2015
Source : The Times of India

 

JAIPUR: Purchasing a property for more than Rs 50 lakh will cost people a pretty penny in the state since chief minister Vasundhara Raje has withdrawn the cap on registration fee. Earlier, the highest fee applicable was Rs 50,000 even if the property bought was worth more than Rs 50 lakh. Now, a flat 1% of the registration fee will be levied.

For example, if a consumer is buying a property worth Rs 1 crore, the state government will levy Rs 1 lakh registration fee. The realtors believe this will be an additional burden on both the consumer and the developer. Ankur Tiwari, a developer, said, "This will certainly increase the price of the property. For a middle income group, the burden is way more than the relaxation provided."

Meanwhile, real estate developers showed mixed responses. While most of their expectations have remained in the wishlist, the one big positive move was an actual charge of stamp duty on DLC in complexes constructed for mixed usage (commercial and residential).

It is expected to benefit the consumers if they are purchasing residential flat in a commercial building. Stamp duty will be charged at residential rates. Earlier, the state government was levying duty on commercial rates.

The state government has also provided relaxation in penalty to stamp duty defaulters. The penalty, which was 2% of the stamp duty, has been reduced to 1%.

Gopal Das Gupta, a prominent developer, said, "The budget will directly benefit consumers purchasing flats for commercial as well as residential purpose. This will encourage them to buy flats in this category. Moreover, relaxation in penalty is a major relief."

Prices of agricultural land will go down with state government's announcement to reduce the registry charges. As per the announcement, the state will levy the charges at actual cost of the agriculture land if it is purchased by any firm or organization. Earlier, one and half times price of actual cost was being charged during registry.

Many developers have also criticized the state government for not providing rebate in the purchase of building material and increasing 0.5% VAT that will elevate the cost.

Vinay Joshi, president, Rajasthan Affordable Housing Developers Association, said, "The realty sector has been ignored entirely in this budget. Few decisions will certainly provide a bit relief to the consumers. However, no initiative has been taken to boost the realty sector."

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