Ready reckoner rates in Mumbai up by 30%
Maharashtra Government has recently decided to raise ready reckoner (RR) rates in Mumbai by 30%. This is an excess hike compared to last year’s average increase of 12%.
The increase in ready reckoner rates is going to affect properties in areas like Prabhadevi, Cuffe Parade and Worli.
This increase has been levied from January 1, 2013. Before 2008, the RR rates were based on the carpet area which is now based on built-up area since 2008. Earlier, it was planned that rate will be increased by 5 percent in Greater Mumbai and 40 percent in rest of the state.
The RR rates are used to calculate stamp duty and registration charges and market value of flats. These are the major source of revenue for government after sales tax and value-added tax (VAT).
As per experts, the new rates will affect the property prices as the builders have to pay high premium to the municipality and the housing authority in the state. The old properties in Mumbai might see a hike of 10 percent in price which are in for redevelopment but the new flats will be less affected as they are already quoted by developers with 40-80 percent higher than those in the RR rates.
Resale of old apartments in Mumbai will also witness a marginal hike in value than the original agreement value. Due to which, additional stamp duty has to be taken care by the buyer.
It is estimated that Government is going to earn a whopping Rs 14,800 crore in 2011-12 from stamp duty which is a 10 percent rise from previous years (2008-09, Rs 8,384 crore, increased to Rs 10,901 crore in 2009-10 (30 percent rise) and Rs 13,411 crore in 2010-11 (23 percent increase).
However, MCHI-Credai, a developers’ body wants the RR rates to be decreased so that stamp duty is slashed automatically. They have to say that with increasing RR rates, the real estate market in India will not be a very pleasant sight and less encouraging for the buyers.
Mumbai govt to hike ready-reckoner rates from January
Apartments in Mumbai, local body tax, Maharashtra Chamber of Housing Industry (MCHI-CREDAI), Maharashtra Housing Area Development Authority, Maharastra government, MCHI-Credai, Mumbai, mumbai property price, Property price in India, Property price in mumbai, Ready reckoner rates, ready reckoner rates by mumbai government, Ready Reckoner rates in Mumbai, Real Estate Developers, Real estate in Mumbai, Registration charges, stamp duty in Mumbai
[...] Ready reckoner rates in Mumbai up by 30% [...]
[...] Ready reckoner rates in Mumbai up by 30% [...]
[...] Ready reckoner rates in Mumbai up by 30% [...]
[...] Ready reckoner rates in Mumbai up by 30% [...]
[...] Ready reckoner rates in Mumbai up by 30% [...]