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IT'S TIME THE STATE GOVERNMENT TO PROTECT HOME BUYERS BY EITHER ABOLISHING OR REDUCING STAMP DUTY LEVIED AFTER IMPLEMENTATION OF GST

 
 
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IT'S TIME THE STATE GOVERNMENT TO PROTECT HOME BUYERS BY EITHER ABOLISHING OR REDUCING STAMP DUTY LEVIED AFTER IMPLEMENTATION OF GST
by System Administrator - Thursday, 6 September 2018, 12:19 PM
 

By: M.S.Yatnatti: Editor and Video Journalist Bengaluru: Confederation of Real Estate Developers' Association of India failed to convince the Karnataka government government to cut or abolish stamp duty and registration fee in the wake of GST being implemented and it amounts to double taxation as the state government is increasing the guidance value between 10 per cent and 25 per cent and it has issued draft notification in this regard .Brigade's revenue from operations rose 11%, Sobha's grew 6.2%, and Prestige, the biggest among the city developers, reported a 5.5% increase to Rs 1,444 crore, compared to the year-ago quarter .Puravankara's revenue from operations rose 17.4% to Rs 371.53 crore."The sales from all the segments and, especially from the higher segments, improved overall realization for builders. "The market has improved in Hyderabad and in the current environment in Bengaluru, having stable sales is a good sign of improvement .Are you planning to build or buy your dream home in near future ? You may want to hold on for some time, as developers led by the Confederation of Real Estate Developers' Association of India (Credai), Bengaluru, are trying to convince the Karnataka government to cut or abolish stamp duty and registration fees in the wake of the goods and services tax (GST) being implemented from July .If the move is successful, you will definitely save some money. "Else, it is expected to burden home buyers by 10%15%," say some industry leaders. Reportedly Suresh Hari, secretary, Credai, Bengaluru, confirmed they had submitted a petition to former chief minister Siddaramaiah, seeking either to abolish or reduce stamp duty as it is expected to hurt home buyers with the introduction of GST. Though GST was introduced to eliminate multiple taxation, he said the real estate sector will be an exception because home buyers are bound to pay GST along with stamp duty and registration fees, which account for 5.6% of the property value. "GST and RERA will certainly add to overheads of the industry and increase housing prices by 10%-15%. It's time the state government steps in to protect home buyers by either abolishing or reducing stamp duty levied on all immovable property after implementation of GST," .