Plot/Site Registration Charges
Buyers should be aware of the site registration charges so that they will Purchase right site at right location. If you are buying a site, you should want to pay stamp duty and Site registration charges in Bangalore without fail. As per the current practice, you should want to pay 5 per cent of the value of the property as stamp duty. In addition to the 5% charges, you will want to pay 10% as cess and 2% as surcharge on stamp duty.
Thus, the stamp duty in urban areas will be 5.6% and in rural areas, it will be 5.65%. There will be 3% surcharge as well. You should want to pay 1% of the total registered property as surcharge.
Calculations for Registering a Site
Even though the registration charges in Bengaluru are calculated based on the Indian Registration Act, 1908, they do vary from one state to another state. There are various parameters which are applied in the calculation of registration charges. If you are purchasing a plot or site coming under BDA, BBMP, KIDB, KHB, BMRDA etc, it will be measured in terms of square feet. The area in terms of square feet will be multiplied with the value that is devoted to the area. The total property value will be calculated by combining the constructed floor area when you go for the registration of your home.
Guideline value is the minimum value at which the property should be registered. State governments prescribe various charges and it varies from one city to another city. In most of the cases, the registration charges are fixed. However, the stamp duty in Bangalore varies from time to time. The stamp duty will be revised on annual basis (in most of the cases).
There is no difference in between men and women in case of registration charges. The guideline value is determined by the government based on the market value of the property, city limits and expansion of the market performance.
The saleable value of the property is equivalent to the size of the property multiplied by the guidance value.
The registration charges are 1% of the saleable value.
The stamp duty is 5.6% in urban areas and it is 5.65% in rural areas.
Hence, the total Cost of site registration in Bangalore is the sum of saleable value of the property, stamp duty and plot/site registration fees.
Sample Site Registration Fees in Bangalore
If you are registering a property which measures 4000 square feet and whose guidance value is Rs. 2000, you will want to pay the following charges:
The value of the property = 4000 x 2000 = Rs. 80,00,000/-
Stamp duty in urban area = 5.6% x 80,00,000 = 4,48,000/-
Registration charges = 1% x 80,00,000 = Rs. 80,000/-
Thus, the stamp duty in urban areas = Rs. 5, 28, 000/-
Note : Above is just a sample site registration fees, these charges may vary if the government changes the Stamp duty rates.
Stamp duty payment collected while Registering a Site
Karnataka State department of Stamp duty and Registration is responsible for collection of stamp duty and registration charges in Bangalore. You can pay stamp duty in various ways. It can be paid by purchasing stamps from the vendors or from the treasury. If you are purchasing from a vendor, you should ensure that you are purchasing from an authorized vendor.
You can purchase adhesive stamps as well as per your convenience. The payment of stamp duty can be done through Pay Order or DD on any nationalized bank or scheduled bank. It can be paid through challan also which has the validity for at least two months from the date of execution. The document can be written on a plain paper.
Service tax and VAT
There will not be any service tax as long as no construction takes place in the site. Similarly, no VAT is applicable when you go for the purchase of an empty site. The service tax is levied by central government and it is paid for the services rendered by the service provider. It is the responsibility of the service provider to collect tax from customers and it will be accounted to the government.
As of June, 2015, the service tax is 14% of the 25% of the total agreement value of the property. This figure is applicable if the value of the property is in below Rs. 1 Crore or area of less than 2000 square feet. If the value of the property is higher than Rs. 1 core or the area is above 2000 square feet, the service tax is 14% of the 30% of the total agreement value.
VAT is decided by respective state government. At the moment, 5.5% VAT is being collected for construction related activities in Bangalore. VAT charges are imposed as per the Value Added Tax (Amendments) Act of 2012.
If you are going to register your site/plot, you should go through the revised guidelines so that you will understand about the revised guidance value of the property and charged at various locations.
There are two types in guidance value. If there is open site which is not meant for construction, you will pay the land value. In case of composite value, the land value as well as the value of the building will also be added. The government will increase the guidance value so that the income generation potential for the government will also increase. Thus, the guidance value will have its impact on property investment.
The guidance value is very high in some areas such as Jayanagar 4th Block to 9th Main Road and 11th Main Road, MG Road to Brigade road, church road, Commercial Street, Ali Askar road to central revenue building, Raj Bhavan road, RM vilas, sadasivanagar and Sadashivanagar Sanky Road.
Apart from the price of the property, you should want to pay stamp duty and service tax which will also add up to the total cost of the property. Hence, you should choose your budget and property should be acquired after considering all the factors that influence the cost.
As Bangalore has great demand for residential as well as commercial property, you can invest as per your budget without any issues and you will get best returns in the shortest possible time.