- THERE MUST BE AMENDMENT IN STAMP DUT ACT.
- STAMP DUT SHOULD BE CHARGED ON THE DIFFERENCE OF AMOUNT.
- IT WILL IMPROVE THE LIQUIDIT IN THE MARKET AND FAIRNESS IN THE TRADE.
Indore: “ We can say recession in real estate is a creation of the State Government. If it makes necessary changes in the Stamp Duty Act, it will be a win- win situation for both the government and the real- estate sector. The government should charge Stamp Duty either at the time of booking or should be charged as per the guideline value of the booking year.’ ‘ The government should also charge the difference of Stamp Duty in case of re- sale of a property,’ says, leading real- estate player of the City and head of RC Maheshwari Group, Liladhar Maheshwari.
He is also the co- promoter of Man Developments. Answering a question on recession in real estate sector, Maheshwari said that it’s a purely a creation of the State Government and it’s up to it to take step and bail out real estate players.He explained the problem of buyer or investor and builder by giving an example.
He says: ‘ If a person books a flat in 2014 @ Rs 1600 per square feet, he will take possession of it in 2017 ( normally a project takes 3 years to complete) and will undertake the registry of the flat as per the guideline rate of 2017.’ Maheshwari asks Why? During 3 years, the guideline rate of property increases by 20% a year.
Hence, after three years, as per the guideline the value of the flat would be Rs 2764 per square feet and a buyer has to pay the Stamp Duty over this value.
This practice is affecting both the builder and the buyer. Maheshwari says that the gestation period of three years is totally unproductive for the both, because both will not get any relief from interest. Maheshwari suggests ‘ measures for the Government to overcome these problems. He said it should amend the Stamp Duty Act and at the time of registration of property, the Stamp Duty should be charged as per the guideline value of the booking year.
Maheshwari suggests another measure to boost the sector. He says, ‘ Either the Stamp Duty can be charged at the time of booking, similar to Service Tax and VAT. In case of sale of property in the mean time, a set- off should be given like that of VAT and Service Tax.
He gives another suggestion to revitalise the core sector of the economy. The government should charge the difference of Stamp Duty in case of second, third and more so selling of a property.
At present, at every sell of property a buyer has to pay full Stamp Duty. Though it is good for the government to expand its revenue but it’s a burden on the part of buyers.Maharashtra is following the same practice.
WIN- WIN SITUATION FOR BUER AND GOVT
Maheswari, who is carrying out the business along with his two sons Anurag and Pulkit, says ‘ These suggestions will boost the real estate sector. He says that through these measures, buyers will encourage to come forward for registration of property, which will surely enhance the state exchequer and develop the fair trade practices.