What is the property value for the purpose of Stamp duty and registration
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Hi – I am buying a flat and going in for registration next week. The builder wants me to register the value at the minimum guidance value which is approx Rs.10 lacs lower than the actual price I am paying him. Since under section 194IA of the income tax act, I have to deduct TDS on payments made to the seller, he is asking me to either pay TDS at the value at which the flat is being registered(minimum guidance value) or if I am deducting TDS on full consideration payable, I have to pay stamp duty and registration charges on full value which mean paying stamp duty and registration charges on additional amount over the minimum guidance value of Rs.10 lacs. fair enough.
My question is – the total amount payable to the builder for flat includes basic cost+car Parking+Club House + BESCOM+BWSSB+VAT + Service Tax. What should be the value of the property for the purpose of stamp duty if I register on full cost. Wouldit all of the above charges or exclude BESCOM, BWSSB, VAT and Service Tax. Or exclude VAT and Service tax. I do not see it reasonable to pay stamp duty on taxes (VAT and Service Tax) as it would amount to double taxation. Can somone let me know if they have faced similar situation. I don’t want to underpay that what is due legally nor do I want to overpay.
2 Answers
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The stamp duty should be calculated only on the Basic Cost + Car Parking which together forms the property that will be registered in your name. Club house charges should be included in the calculation only if you are getting an undivided share in the club house too.
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Thanks Harsha for answer. But are you sure that it is only on Basic Cost + Car Park + Clubhouse if I am getting a share? My builder wants me to deduct the TDS, which I as a buyer have to pay @1% of the amount paid to the builder for buying the property, only on the registration value and not on the payment being made by me. He says that when we go for registration, the registrar will ask for TDS challan and since I would have deducted tax on total cost and not just basic+car park, he will ask me to register at that value( which includes amenities, BWSSB,BESCOM,VAT and Service Tax). Hence the question.
Does your answer remain the same now and the registrar will also agree to register the property by calculating the value as just the basic cost + car park?
