UP IN ARMS Pur­chase price is key, say own­ers

HT Estates - - Front Page -

Why are the CWG Vil­lage flat own­ers protest­ing? To un­der­st­sand their prob­lem, let’s as­sume there is a flat with a su­per area of 2053 square feet, the trans­ac­tion cost of which in 2008-2009 was R2,86,16715. Its cur­rent value is be­ing quoted at around R5crore. Ac­cord­ing to the lat­est no­ti­fi­ca­tion is­sued by the rev­enue depart­ment (Delhi Gov­ern­ment) the cur­rent high­est circle rate for a pri­vate de­vel­oper apart­ment any­where in Delhi is R75,000 per square me­tre, ie, R7009 per sq ft. So, as per the pre­vail­ing circle rate, the cost of the flat should bes 2053x7009, which is R1, 43,89,477 Legally, stamp duty is charged on the higher amount of the two – trans­ac­tion cost or the cost cal­cu­lated on the ba­sis of the circle rate. So, R2,86,16715 (trans­ac­tion cost) is higher than R1,43,89,477 (cost cal­cu­lated as per the circle rate).Ex­perts say if the trans­ac­tion cost is higher than the cost cal­cu­lated on the ba­sis of the circle rate, a sub-reg­is­trar has to cal­cu­late the stamp duty on the trans­ac­tion cost. In the CWG Vil­lage case the sub-reg­is­trar’s of­fice has held back the reg­is­tra­tions and asked the df­fice of the di­vi­sional com­mis­sioner (DC), Delhi for ad­vice on charg­ing stamp duty on the cur­rent mar­ket price of R5 crore. The CWG Vil­lage apart­ment own­ers want the flats to be reg­is­tered at the pur­chase price at the ear­li­est.

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