Hi friends!! I understand that this rise in RR rate will increase the property prices in Maharashtra but at the same time, in a major relief to the distressed small and marginal farmers, Maharashtra Chief Minister Devendra Fadnavis has announced a waiver in stamp duty and registration charges for crop and term loans up to Rs 2.5 lakh for the year 2016-17 in view of bitter drought condition in the state.
Hi all, The ready reckoner rates for 2016-17, applicable from April 1st 2016 to 31st March 2017. And the areas where these rates are increased are Mumbai-7%, Thane-6%, Navi Mumbai-4%, Mira Bhayandar-4%, Vasai-Virar-3%, Pune-6%, Nagpur-3% and Aurangabad-4.99%.
@Hitesh, But this time Mumbai builders had urged the government to postpone it as the real estate market was stagnant. As per the developers people are preferring to lease out properties. Today's RR rate for Nariman Point is over Rs. 48000/sq-ft.when the market rate for office premises is in the range of Rs.26000-32000/sq-ft. Many companies have moved to BKC, whic has emerged as the premier central business district. This rate will surely kill the market of Nariman point.
Hi Everybody, Do you know that Maharashtra Govt. has increased the the ready reckoner rates for Mumbai and rest of the Maharashtra by an average 7-8%. The rates used for property valuation have been increased by 7% for Navi Mumbai while for Pune the average hike is 6%.
Hi Hitesh!! I know development is going all around the Maharashtra and the taxes collected by the MAharashtra Govt. expend on infrastructure of the city. But homebuyers in Maharashtra already struggling with unaffordable prices and now this RR hike would result in homebuyers paying more stamp duty. Apart from this, developers also usually pass on increases in project expenditures to consumers.
@Ak Jain, But the government usually revises these rates every year. In 2014, these rates were increased by up to 22% following a 27% hike in 2013..
I know that various levies in charges, including premium for floor space index and development charges paid by builders are calculated based on ready reckoner rates. Any rise in these levies would increase a project's cost. Which developers would try to recover from customers.
Yes, The Maharashtra Govt. has hike the rate in the Annual Statement Rate from 1st day of April 2016. There is likelt to be in the range of 7% to 8% depending on the geographical area and locality, the hike in urban area is about to 7% on wards and highest in rural areas is about to 8% .
Hi friends!! In form of Krishi Kalyan Cess, a levy of 0.50% is going to add up to existing rate of service tax on all taxable services which sums up to total service tax of 15%. Arun Jaitely, in his first budget had increased service tax rate to 14% from 12.36% and then added 0.50% as Swachh Bharat Cess from 15th November, 2015. Now, with krishi kalyan cess of 0.50%, the new service tax rate will be 15% effective from 1st June 2016.
On the other hand Govt. of Maharashtra have published there New Guidelines on Ist of January 2016, with modification in valuation factor to determination of true market value of property for the year 2016 due to which there is an increase of 15% to 20% of market value.
Hi Ashish, And the reason is, The decision comes in the wake of the state government’s plan to stabilise the steep increase in housing prices in all metros, and two- and three-tier cities. An unchanged RR aims to boost the real estate sector, which is reeling under a slowdown.
Hi Roshni and Kishore, What is Guidance Value and who decide it? It it differ from are to area? Where should i pay the Stamp Duty and Registration Charges?
The guideline value, more commonly known as guidance value, is the minimum value at which a property can be registered. It is decided by the respective State governments and differs from one area to another in a city. While registration charges are mostly fixed.
You can pay Stamp Duty and Registration charges in Maharashtra through the Govt. Of Maharashtra, Department Of Registration and Stamp. You can also pay it online.
Hey Roshini, Stamp duty can be paid through the following means:
a) Purchase of impressed stamps from treasury or authorised stamp vendors, OR b) Purchase of adhesive stamps, OR c) Payment to the government through payment of DD/ pay order issued by any nationalised bank/scheduled bank or challan, OR d) Instrument (document) can be written on plain paper and the stamp duty can be paid through DD/ pay order issued by any nationalised bank/ scheduled bank or challan within 2 months of the date of execution of the instrument, and certified by the jurisdictional District or Sub Registrar.
Hi everybody, The guideline value, more commonly known as guidance value, is the minimum value at which a property can be registered. It is decided by the respective State governments and differs from one area to another in a city. While registration charges are mostly fixed, stamp duty in Maharashtra can change from time to time, with the Maharashtra government revising them mostly annually. These charges are primarily dependent on the existing market rate of the property, the expansion of the city limits and the property market performance.
WC Kishore, Saleable Value = Size of property x Guidance Value Registration charges = 1% of Saleable Value Stamp Duty = 5% Total cost of the property = Saleable value of the property + Stamp duty + Registration charges Let us take the instance of a property which measures 2000 sq-ft. in an area in Mumbai where the guidance value is Rs 5000/sq-ft. Hence,
The Saleable Value of this property = 2000 x 5000 = Rs 10000000 Registration charges = 1% of 10000000 = Rs 100000 Stamp duty in Urban areas = 5% of 10000000 = Rs 500000
Hi Folks.... Increase in RR rates in Andheri averaged 12.8% across all categories. However, few sub-divisions in Andheri saw RR rate increase of 20% for residential, office and industrial properties. In Goregaon the rate increase across all categories averaged 24.3%, and most sub-divisions in Goregaon saw RR rate increase in the range of 20-30%.
The sub-division of Goregaon saw a huge RR rate increase of 40% across all property categories. While in Kandivali, the rates went up by 18.5% for residential and office transactions. The subdivision of Kandivali saw RR rate increase of 35% across property categories. In Borivali, the rates went up by almost 13% for residential and office space transactions.
From now onwards, on buying a property, the owner has to pay 5% stamp duty and 1% or Rs 30000 (whichever is less) of the total flat value to the state government. This is mandatory for every sale and purchase of the property.
The Ready Reckoner rates are also used to determine the premium charged on FSI, and other property-related payments, including property taxes as per the new structure. The increase in RR rates means that costs related to all payments and charges linked with the rates will likely go-up in 2015 making real estate in the city more expensive. The RR rates are provided by the government for 5 broad categories of properties, which are land, office space, residential apartments, shops and industrial property.
Right Samrat, As per the current Ready Reckoner Rates for Mumbai island city have went up 10.5% for both residential and office property transactions. In Colaba, RR rates on an average saw a jump of 10% across for residential and office space transactions. While in Worli, on an average rates for different property transactions were increased by 4.3%. In Lower Parel, although the average numbers showed reckoner rate increase of 8.6%,
Seeing the increased Ready Reckoner rates in Mumbai, industry participants and experts are not happy with the government's decision to increase the RR rates, and feel that the move will have a negative impact on the overall realty market, which is already witnessing slowdown.
Well Kishore, It is calculated on the basis on value of property shown on paper by the property owner or value of property assessed by the Govt. which ever is higher.
@Kishore, The new ready reckoner rates will be out on 1st January, and as per sources in the Inspector General for Registration Office, Maharashtra, these are moving up by nearly 20% across the city on an average, and will be higher in some pockets.
@Arun, But at the same time good news for those who already have flats and may go in for redevelopment. The fees shall be calculated for the extra space the owner gets, and not on the existing space he owns.
Hi Arup, I want to know the exact definition of stamp duty and registration charges. Do the stamp duty and registration charges vary in all the cities across the state?
Hi Kishore, Registration charges and stamp duty vary across different states. Usually, the same charges apply to all the cities across the state.
Registration charge is one of the main charges to be paid by the purchaser at the time of registering a property. Registration charges are charged as per the value of the property.
Stamp duty is a tax collected by the government for transaction of a property under its jurisdiction. The stamp duty takes into account various factors such as the property being freehold or leasehold, the land parcel applicable to the purchaser in case of a multi-storeyed apartment, the ready reckoner rates (RR rates) and the agreement value (as a rule, agreement value should be at least equal to the ready reckoner prices stated by the government). The final stamp duty is calculated after taking into account these factors. The stamp duty is paid by the purchaser.
Hi Sandeep, Registration charge in Mumbai is 1% of the total value of the property. This means that if the property is registered for Rs 60 lakh, the registration charge will be Rs 60000.
Similarly, stamp duty in Mumbai is 5% of the total cost of the property. This takes into account the value of the property shown on the paper, or the RR rates (Ready Reckoner) defined by the government, whichever is higher.