Mumbai Municipal Corporation imposes 1% surcharges on Real Estate Deals

tax1By Accommodation Times Bureau

In its annual budget, Brihan Mumbai Mahanagar Palika (BMC) have proposed to impose 1% charges on property registered in Mumbai limits costing more than 1 cr.

The move came in as, it justified that since we are going to loose Octroi revenue in GST regime, we have to sustain. GST, is suppose to repeal and scrap all indirect taxes including LBT and Octroi. The very purpose of GST was to have tax reforms and eliminate multi level taxation. But BMC wants its share any how not only from state GST but also have imposed 1% surcharges on property deals. In Mumbai, normally a property cost more than Rs 1 cr.

Now a flat purchaser will have to pay Stamp Duty and Registration almost touching 7%. This further 1% will increase cost of acquisition of property. There will be GST to the tune of almost 5% in under construction flats.

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