By Accommodation Times News Service
Maharashtra Government has decided to give a real estate industry a blow by increasing the ready reckoner rates (RR). According to the proposed plan the rates will be hike from the 1st January. The RR will be increased by 5% but in Mumbai 40% can be increased; the government believes that by increasing the rates there will be exaggeration of stamp duty and registration can be achieved. Ready Reckoner rates are those rates on which stamp and registration are measured.
Developers and builders think that if the rates are increased automatically there will be inflation in property price too because builders has to pay municipal corporation, MHADA have to pay more also 1% VAT and Service Tax too. Government has removed the octroi duty and instead has imposed Municipal Tax.
According to the report in 2010, 2011, 2012 the stamp duty and registration tax was 65%, because of the sluggish market there was no hike in the rates. The revenue minister Balasaheb Thorat said that govt. has received many requests from different representatives not to change the rates. Hence now they have to wait and watch.