Plot/Site Registration Charges
Buyers should be aware of the site registration charges in Bangalore so that they will Purchase the right site at the right location. At A4D Architects, we also feel that it’s also important for you to read about the Site registration procedure in Bangalore.
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 percent of the property’s value as stamp duty. In addition to the 5% charges, you will want to pay 10% as cess and 2% as a 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 a 3% surcharge as well. You should want to pay 1% of the total registered property as a surcharge.
| PARTICULARS | SITE REGISTRATION CHARGES IN BANGALORE | Registration Charges or Stamp duty |
| Stamp Duty | BBMP, Corporation, BMRDA & other Village Areas | 5% of the total sale consideration or guidance value, whichever is higher. |
| Surcharge | BBMP & Corporation | 2% of the stamp duty, i.e., 0.1% of the total sale consideration or guidance value, whichever is higher. |
| BMRDA & other Village Areas | 3% of the stamp duty, i.e., 0.15% of the total sale consideration or guidance value, whichever is higher. | |
| Cess | BBMP, Corporation, BMRDA & other Village Areas | 10% of the stamp duty, i.e., 0.5% of the total sale consideration or guidance value, whichever is higher. |
| Registration Fee | BBMP, Corporation, BMRDA & other Village Areas | 1% of the total sale consideration or guidance value, whichever is higher. |
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CALCULATIONS FOR SITE REGISTRATION
Even though the plot registration charges in Bangalore are calculated based on the Indian Registration Act, 1908, they vary from one state to another.
Various parameters 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 square feet. The area in terms of square feet will be multiplied by the value 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
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 cases, the registration charges are fixed.
However, the stamp duty in Bangalore varies from time to time. The stamp duty will be revised on an annual basis (in most cases).
There is no difference between men and women in the case of registration charges. The government determines the guideline value based on the property’s market value, city limits, and the expansion of the market performance.
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The property’s saleable value 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 the property’s saleable value, stamp duty, and plot/site registration fees.
Sample Site Registration Fees in Bangalore
If you are registering a property that 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 collecting 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 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 at your convenience. The stamp duty payment can be done through Pay Order or DD on any nationalized bank or scheduled bank. It can be paid through challan also which has validity for at least two months from the date of execution. The document can be written on plain paper.
Service tax and VAT:
There will not be any service tax as long as no construction takes place on the site. Similarly, no VAT is applicable when you go for the purchase of an empty site.
The central government levies the service tax, and it is paid for the services rendered by the service provider. It is the service provider’s responsibility 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 property’s total agreement value. This figure is applicable if the property’s value is below Rs. 1 Crore or an 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.
The respective state government decides VAT. 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.
Revised guidelines:
If you are going to register your site/plot, you should go through the revised guidelines to understand the revised guidance value of the property and be charged at various locations.
There are two types of guidance value. If there is an open site that is not meant for construction, you will pay the land value.
In the case of composite value, the land value and the value of the building will also be added. The government will increase the guidance value so that the government’s income generation potential 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.
Investment potential:
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 influencing the cost.
As Bangalore has great demand for residential and commercial property, you can invest as per your budget without any issues, and you will get the best returns in the shortest possible time.
