By Accommodation Times Bureau
The Real Estate sector is going through difficult phase hence CREDAI Maharashtra has requested the state government not to increase ASR (Annual Statement Rate) this year. The demand is not only to keep ASR as it is but to reduce the ASR rates wherever it can actually be reduced. Maintaining as it is ready reckoner rate will not lead to revenue loss, said Shantilal Kataria, President CREDAI Maharashtra in a statement.
On behalf of CREDAI, a presentation was made to the policymakers and the members of the Legislature which mentioned the requisite steps to be taken that would result in the increase of sales and revenue for the state. This is not currently happening due to the ASR’s climbing rates.
“The Real Estate sector is going through a hard phase for various reasons including RERA, high GST, financial reforms, NBFC crisis, market demand-supply situation. Therefore, CREDAI Maharashtra has requested the state government not to increase ASR this year. The demand is not only to keep ASR as it is but to reduce the ASR rates wherever it can actually be reduced by using the powers to cut the rates bestowed last year through the amendment to the ACT, added Kataria.
A rise in ASR not only increases the stamp duty but also increases premium, labour cess, levies and other taxes etc. In order to have fair and just legal system, specific cases where transactions are not happening should be addressed specifically and rates in ASR be reduced. During 2018-2019, even though the ASR was kept constant, the revenue of Government has substantially increased; hence it is clear that even if ASR is kept constant the revenue can increase. In the past 6 years, ASR has been increased 5 out of 6 times. As a result across the state, rates in ASR have almost doubled. But in reality, home prices have remained stable over the past 6 years, he said.
He further stated that another tool of increasing ASR indirectly is through footnotes. In spite of our constant demand & follow up, Government has not made required true changes. We have already given a presentation on the same to the Government and this time they have agreed to look into it the same positively. Long pending issue of injustice is due to footnotes, is expected to be resolved this time, stated Kataria.
CREDAI also made some more important suggestions that need to be considered before finalising ASR.
1. The govt must take steps to implement the method of a scientific micro-mechanism for determining ASR rates of each property
2) The Government should do away with average rate system; it should be the lowest rate.
3 ) Revision in ASR should be once in 3 years only
4) Adjudication system should be more fast, transparent and with proper powers to the authorities.
5) Since GST is in place, LBC should be abolished