Stamp duty rationalisation by the State Govt of Maharashtra
By Arvind Nandan, Executive Director, Cushman & Wakefield, India
The recent Maharashtra Budget has levied a flat stamp duty of 5% on all purchases in areas within municipal corporation boundaries across the state. Though this would lead to a further increase in the cost of purchasing a property, the overall impact of this alone will not be very significant. For example, for a property worth Rs 50 lakh, situated within municipal corporation limits of Mumbai, the overall cost will increase by only 0.34% for the buyer – if analysed purely on the basis of the change in stamp duty. A similarly priced property located in a municipal council limit would attract a lesser stamp duty at 4%, and even lower, if located in a Gram Panchayats where it will be 3%. Buyers in locations like Ambernath, Karjat and Badlapur in the outskirts of the city would gain from this move. These locations have a number of low cost and affordable housing projects under construction.
Buyers will, however, still need to take into consideration the impact of rise in input costs which proposed to be taxed at a higher rate; as also, the measures introduced by the Central Budget recently. Hike in service tax for property purchase and commercial lease transactions will add to their overall cost of purchase. All these factors together may cause some heating up of the prices.