Houses to cost more, Societies less

GOANEWS DESK, PANAJI | 18 March 2013 22:00 IST

Houses costing above Rs 10 lakh would be now costly, but cheaper if the Housing Society is formed.

The budget has brought the housing industry under taxation in two areas – the sale agreement and the stamp duty.

Chief minister Manohar Parrikar has decided to levy tax on on consideration received or receivable by the builder or developer by way of agreement to sell the flats or housing project or dwelling units or row houses and the like, which are under construction or development.

However flats or dwelling units, whose agreement value is less than Rs 10 lakh, will be exempted.

If the value is between Rs 10 lakhs to Rs one crore, than the tax will be levied at one per cent of the agreement value.

The houses above Rs one crore would be taxed at the rate of two per cent.

On the other hand, the government has proposed to reduce the stamp duty by one per cent for sale agreement in each of the existing slab.

The housing society would be in the first slab, in order to encourage registration of housing societies, said Parrikar.

An appropriate notification will be issued in consultation with the Registrar of Co-operative Societies, stated the budget speech.

The housing complexes would also be imposed infrastructure tax now, in three different categories:

 (A) Coastal Panchayat areas and five major towns such as Panaji,  Mapusa, Ponda, Vasco and Margao;

(B) Census Towns and Village Panchayats adjoining five major towns  indicated at (A) as well as other Municipal areas; and

(C) Other Village Panchayat areas.

The Infrastructure Tax for residential zones or residential developments will be Rs 200 per sq. m. in all the three categories.

For commercial developments or commercial zones in (A) category of areas, however, the infrastructure tax will be Rs 1000 per sq. m.

For (B) category of areas, the infrastructure tax will be charged at Rs 750 per sq. m.

And for (C) Category of areas, it will be charged at Rs 500 per sq. m.

The Infrastructure Tax for Industrial developments will however remain Rs 250 per sq. m. is now on Telegram & also Youtube. Kindly subscribe for free & remain updated.

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