Joint development properties to become cheaper
The revenue taxes for the commercial, excise and motor vehicles departments have been hiked by the government. An additional Rs 6, 850 crore is to create from this three departments and further a sum of Rs 900 crore is expected from the stamps and registration department, and the total revenue to be mobilized will touch an amount of Rs 7, 750 crore.
In order to keep builders happy, the government has removed the one percent fee clause imposed on joint development agreement and related power of attorney between the land owner and developer. Earlier, developers used to pass on the burden of one percent registration fee to the home buyers but now an amount of Rs 1.5 lakhs has been proposed in the budget. If the agreement fee cost Rupees one crore, the same amount would have been put on the buyers at different rates. With the reduced fee, the benefit will also be passed on to the end-buyers.
Earlier, the land owners and developers would never enter a written agreement, resulting in losses to the exchequer because of high cost. Now, however, a minimal amount will flow into the state’s pocket.
The stamp and registration department will have to collect an amount of Rs 5,200 crore by March 31, and Rs 6,100 crore next financial year. The government has asked the commercial taxes department to meet a revenue target of Rs 37,000 crore during 2013-14, without bringing in any additional resources mobilization measures.
The target is up by Rs 5,000 crore from 2012-13. Similarly, the excise department has been given a target of Rs 12,400 crore, up by Rs 1,200 crore compared to the current year’s target and the motor vehicles department has been given a target of Rs 4,008 crore next year, Rs 900 crore more than this year. Presently, tax on construction equipment vehicles are collected in two installments but from now it will be collected only once.
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Bangalore, Bangalore Real Estate, Builders in India, home buyers, home buyers in Bangalore, Indian real estate, joint development properties, Power of attorney, Real Estate Developers, stamp and registration department
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