Mumbai govt to hike ready-reckoner rates from January
Maharashtra Government is planning to increase the ready reckoner from January 1 in Greater Mumbai and rest of state.
The rate will be increased by 5 percent in Greater Mumbai and 40 percent in rest of the state. This is done despite the ongoing slow down as the government estimates the increasing number of registration will help cross the stamps and registration tax Rs 15,000 crore mark by end of 2012-13.
Ready reckoner is an annual statement of rates on which the stamps and registration department collects the stamp duty from property owners. From January 1, 2012, the government has increased RR rates in Greater Mumbai by an average 18 percent.
Realty players are predicting that any rise in RR would ultimately lead to hike in property price as real estate developers have to pay huge premium to the state Maharashtra Housing & Area Development Authority (MHADA), civic body and also due to the payment of 1 per cent VAT and service tax.
Revenue department has collected the data for 2010, 2011 and 2012 which shows that 65 percent of tax has been collected alone from the registration of immovable properties. The income from stamp duty during 2008-2009 was Rs 8,384 crores which was increased by 30 percent (Rs 10,901 crores), Rs 13,411 crore in 2010-11 (23 per cent increase) and Rs 14,800 crore in 2011-12 (10 percent).
Till now government has not received the revised RR rates from the new year but government needs the revenue as they are attempting to match the RR rates with the market rates. The home buyers are already burdened due to additional taxes charged by the civic body and other agencies. MCHI-CREDAI, a developers’ body, has requested the state government to reduce the ready reckoner rates that form the basis of stamp duty.
The real estate market sentiment was not very encouraging with the cost of inputs as the labour and materials cost are increasing every day. Thus the government should create friendly atmosphere to encourage home seekers to buy and developers to do their business.
local body tax, Maharashtra Housing Area Development Authority, Maharastra government, Mumbai, mumbai property price, Property price in India, Property price in mumbai, Ready reckoner rates, ready reckoner rates by mumbai government, Real Estate Developers, Real estate in Mumbai, Registration charges, stamp duty in Mumbai
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