Stamp Duty On Rebuilt Projects: Bombay High Court Chooses Amicus Curiae
AccordingtoaproposalfromtheMaharashtraDepartmentofRegistration& Stamps,thestampdutyonrebuiltprojectswillbereducedtouptoRs1,000per unit.HomeownerswouldsavemorethanRs1lakhthankstothisdecision,butthe BombayHighCourt'slatestinvolvementhascalledintoquestiontheverdict.Let's examinewhathomeownerscanexpectinthefuture.
Are you searching for new projects in malad?
OncetheBombayHighCourtreceivedarequestfromtheMaharashtraDepartment ofRegistration&Stamps,itsdesignatedlawyerSamitShukla,apartneratthe companyDSKLegal,asanAmicusCuriaeforthecase.Asitrelatestothestampduty thatmustbepaidonrenovatedprojects,thejudgementhasasignificantimpacton manyredevelopmentprojectsthroughouttheState,particularlyinBombay.
What caused the State to "reduce the stamp duty" on projects that were redeveloped?
Everyresidentwhopurchasedaunitintherefurbishedbuildingupuntilthispoint wasrequiredtopayRs1lakhforstampdutyona2BHKapartment.Thisquantity wasevenhigherinsomeareas.TheNationalRealEstateDevelopmentCouncilnoted thatthisquadrupledthestampdutyburdenonpropertyowners(NAREDCO). Thedevelopertypicallyhastopaystampdutyontheredevelopmentagreement dependingonthepriceofbuildingtherehabilitationcomponent,therentfor residents'temporaryhousing,thecostoffindingthathousing,andthecostof grantingtheuseofTransferofDevelopmentRights(TDR).Anotheragreementis formedbetweenthebuilder,thesociety,aswellasthemembersoncethe refurbishedprojectisturnedbackovertotheoriginalresidents,whichwouldonce againbesubjecttostampduty.
Asaresult,thegovernmentdecidedthatstampdutywillbeassessedonthe refurbishedstructuresinaccordancewithSection4oftheMaharashtraStampAct, rangingfromRs100toRs1,000perunit.Also,thedeveloperororganisationwould needtopresentonePermanentAlternativeAccommodationAgreementfor authenticationinthecollector'soffice.
Why did the Court intervene?
Since2020,theMaharashtragovernmenthasbeenmodifyingthecity'sstampduty inanefforttoboosthomesalesamidthetumultuousCOVIDperiod.Yetitwasn't obviouswhethertheoutstandingstampdutyshouldbepaidattherateineffectat thetimethepreviousdocumentwassignedorattherateineffectatthetimethe propertywasrenovated.TheBombayHighCourtintervenedinthisissueto determinewhetherseparatestampdutyisdueondocumentssignedduring Maharashtrarehabilitationprojects.Thechoicehasn'tbeenmadeofficial,yet.
What effect would the intervention have on the real estate market in Mumbai?
IndustryanalystspraisedtheStategovernment'spreviouschoice,sayingthatit wouldbeverybeneficialforredevelopmentprojectsintheMumbaisuburbsof Ghatkopar,Mulund,Chembur,Kandivli,Borivli,Goregaon,&Andheri.
Nonetheless,thecourtnotedthatseparatedocumentstransferringunitstospecific membersshallberecognizedasdistinctdocumentsinaccordancewiththe guidelinesestablishedforstampdutyforrebuiltstructures.So,thecostof constructionmustbereducedbythestampdutyontheareathatwasapprovedby society.TheindependentattorneychosenbytheBombayHighCourthasyetto renderadecision,nevertheless.
You’re looking for Projects in Kurla we have the Best Properties In Mumbai Like Ready to Move:https://navimumbaihouses.com/properties/search/kurla/
If you want daily property update details please follow us on Facebook Page / YouTube Channel / Twitter