High Property Prices - Why does Government give a free hand?
Builders play important role in helping the politicians rule the land. No. I am not talking about "Politicians & Builders Nexus" or bribes, election funds and assistance to convert "loot of taxpayers' money" into white.
I am talking about the "official" business transaction, give & take, between the builders & the men in power - government!
I am talking about - government's "cut" in the property price!
You know what? When a builder charges you Rs. 3,300 per sq.ft., the government's "cut" is, approximately, Rs. 1,087 per sq.ft. - nearly, 33%!
If, the government is 33% partner in real estate sector,
how can we expect government to control the property rates?
How can we expect government to increase 'supply of land'?
How can builders' government take any step which will make housing affordable for the urban middle class?
We have to remember that we are the 'minority' and only "tax cow" for the government.
Stamp Duty, Registration Charges, VAT & Service Tax:
We all know only about what we pay to the government when we register the agreement of our property. Stamp Duty 5% + Registration Charges Rs. 30,000 + Service Tax 2.57 % + VAT 1% = Approximately Rs. 313 per sq.ft. to the government.
Now let us know about what a builder has to pay to the government...
Let us assume that the 2,00,000 sq.ft. project - 11 story buildings with standard specifications & amenities, the property rate based on the saleable area is Rs. 3,300 per sq.ft.
"Besides what you pay, while constructing this project, builder pays to local, state & central government, approximately Rs. 774 per sq.ft. on the saleable area!,"
Approximate charges paid by a builder to the government!!!
1) Stamp Duty on Purchase of Land - Rs. 60
2) Registration Charges for above Land - Rs. 14
3) Revenue Matters - Rs. 15
4) NA Charges - Rs. 5
5) Municipality Charges & Premiums - Rs. 285
6) Octroi on Materials - Rs. 44
7) MSEB Charges - Rs. 20
8) Environment Clearance Charges - Rs. 10
9) VAT on Construction Materials - Rs. 86
10) Service Tax on Construction Labor - Rs. 57
11) Excise on Construction Materials - Rs. 111
12) Service Tax on Consultants' Fees - Rs. 10
13) Mortgage Stamp Duty on Project Loan (25% of Construction Cost) - Rs. 4
14) Property Tax on Plot for 4 Years - Rs. 12
15) Service Tax on Marketing & Promotion - Rs. 5
16) Premium on Road & Amenity Space - Rs. 38
Looking at the above scenario, both the buyers & the builders are nothing but "tax paying cows" to the government and resulting major reason for High Property Prices!!
The demand of luxurious apartments in Chandigarh are boosting due to the perpetually rising lifestyle of the individuals. Chandigarh in addition known as 'City Beautiful' is among the best structured city of India. Since it was formally elite as a city in 1952, it's all the trendy facilities to produce.
ReplyDeleteLink: Flats in Chandigarh
http://www.proptiger.com/residential-apartments-flats-chandigarh.php
Thanks for posting this information.
ReplyDeleteHi, what a great web blog. I usually spend hours on the net reading blogs on Property in chandigarh . And, I really would like to praise you for writing such a fabulous article. I honestly believe there is a skill to writing articles that only very few posses and yes, you got it. This is really informative and I will for sure refer my friends the same. Thanks.
ReplyDeleteInteresting real estate updates!
ReplyDeleteHow I Got My Loan From A Genuine And Reliable Loan Company
ReplyDeleteI am Mrs.Irene Query i was in need of a loan of S$70,000 and was scammed by those fraudulent lenders and a friend introduce me to Dr Purva Pius,and he lend me the loan without any stress,you can contact him at (urgentloan22@gmail.com) Approvals within 2-4 Hours
1. Name Of Applicant in Full:……..
2. Telephone Numbers:……….
3. Address and Location:…….
4. Amount in request………..
5. Repayment Period:………..
6. Purpose Of Loan………….
7. country…………………
8. phone…………………..
9. occupation………………
10.age/sex…………………
11.Monthly Income…………..
12.Email……………..
Regards.
Managements
Email Kindly Contact: urgentloan22@gmail.com
ReplyDeleteIt is very nice article on that topic. I was looking for something like which is interesting and knowledgeable. Do you know that Agrawal Construction Company has the most amazing townships, especially 5 BHK Bungalow In Bhopal, with the name Sagar Green Hills. It is located in the lap of nature.