BHOPAL: Central Valuation Board (CVB) is yet to receive any order from the state government for 20% cut in rates of property and 2% hike in the cost of registry.
The cabinet had recently decided to slash the collector guideline rates of property by 20%. To compensate the revenue loss, the cabinet also took the decision to increase stamp duty on the registration of property from 10.3% to 12.5% in select urban areas and from 7.3% to 9.5% in rural area across the state
The rate cut is likely to be effected uniformly across the state. However, the Central Valuation Board is not in position to implement it as it is yet to receive official order from the government.
According to sources closed to Registrar Office, the meeting will not be convened for approval till state chief secretary gives issues order of the cabinet decision.
Sources said that if direct order is given regarding 20 per cent cut in collector rates, Central Valuation Board would pass on the same to district collector for the implementation. So there is thin chance for any formal meeting for approval.
In fact, the “market value guidelines” (guideline rates or circle rates) are used for charging stamp duties, cess, registration fees. The move is expected to help in revival of construction and the real estate sector.
Madhya Pradesh has followed examples set by Tamil Nadu and Haryana governments among others states before taking decision to reduce the rate by 20 per cent, sources added.
Rates are decided first by district valuation committees and it is sent to the central valuation board in the state for approval. For transactions done below these rates, incomes tax is calculated on the guideline rate, which increases the outgo for the seller.
