Residential Investment_Statutory cost & Market Norms_India

Buying under-construction property? Here is a guide for statutory costs and market norms in different cities. Statutory Cost SERVICE TAX 12.36% on 25% of the total purchase price if the property cost less than 1 crore. 12.36% on 30% of the total purchase price if the property cost more than 1 crore or having an area above 2,000 Sq.ft. Approximately 1 to 2% of the property value > > > > > > LEGAL ADVISORY COST Market Norms The total cost for any property include the base price, car parking charges and other charges which may vary from city to city. Other charges that may be included are EDC (External Development Charges), IDC (Internal Development Charges), lease rental, IFMS (Interest Free Maintenance Security), PLC (Preferential Location Charge), CMRC (Club Membership & Registration Charges), electric substation charges, and KVA backup charges. Diclamier: This document has been prepared by Colliers International for general information only. Colliers International does not guarantee warrant or represent that the information contained in this document is correct. Any interested party should undertake their own enquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damage arising directly or indirectly there-from. Colliers International is committed to accelerating our client’s success. With more than 13,500 professionals in 482 offices across 62 countries worldwide, we use our wealth of market knowledge to help you achieve your goals. Visit us on www.colliers.com For Residential Services, please contact: Poonam Mahtani National Director I email: [email protected] For Research related queries, please contact: Surabhi Arora MRICS Associate Director I email: [email protected] Generally, properties are sold on chargeable area/super area basis. Loading, the difference between built up and carpet area is usually in the range of 15 to 45% on project to project basis. One can choose among various payment plans such as down payment, constructions linked plans, flexi plans and subvention plans. DESCRIPTION STAMP DUTY REGISTRATION CHARGES VAT (ON AGREEMENT VALUE) MUMBAI 5% 1% of property value (Up to a maximum of INR 30,000) 1% (on Agreement Value) CHENNAI 8%* 1% of property value (Up to a maximum of INR 30,000) Nil BANGALORE 5% - 6%** 1% of property value (Up to a maximum of INR 30,000) 4 – 5% (on Agreement Value) DELHI 4% - 6%** 1% of property value Nil GURGAON 5% - 7%** Up to a maximum of INR 15,500 Nil NOIDA 5% - 7%** INR 22,000 Nil KOLKATA 6% - 7%** 1.1% of property value Nil PUNE 5% 1% of property value (Up to a maximum of INR 30,000) 1% (on Agreement Value) *8% on Undivided Share (UDS) of land based on Guidance Value (GV). **1 - 2% less as rebate, if property registered under women’s name.

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This report details out various legal charges levied by the Govt. of India on residential property purchase across all major cities of India.

Transcript of Residential Investment_Statutory cost & Market Norms_India

Buying under-construction property?Here is a guide for statutory costs and market norms in di�erent cities.

Statutory Cost

SERVICE TAX

12.36% on 25% of the total purchase price if the property cost less than 1 crore.

12.36% on 30% of the total purchase price if the property cost more than 1 crore or having an area above 2,000 Sq.ft.

Approximately 1 to 2% of the property value> >

LEGAL ADVISORY COST

Market NormsThe total cost for any property include the base price, car parking charges and other charges which may vary from city to city. Other charges that may be included are EDC (External Development Charges), IDC (Internal Development Charges), lease rental, IFMS (Interest Free Maintenance Security), PLC (Preferential Location Charge), CMRC (Club Membership & Registration Charges), electric substation charges, and KVA backup charges.

Diclamier: This document has been prepared by Colliers International for general information only. Colliers International does not guarantee warrant or represent that the information contained in this document is correct. Any interested party should undertake their own enquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damage arising directly or indirectly there-from.

Colliers International is committed to accelerating our client’s success. With more than 13,500 professionals in 482 o�ces across 62 countries worldwide, we use our wealth of market knowledge to help you achieve your goals. Visit us on www.colliers.com

For Residential Services, please contact: Poonam Mahtani National Director I email: [email protected]

For Research related queries, please contact: Surabhi Arora MRICS

Associate Director I email: [email protected]

Generally, properties are sold on chargeable area/super area basis. Loading, the di�erence between built up and carpet area is usually in the range of 15 to 45% on project to project basis.

One can choose among various payment plans such as down payment, constructions linked plans, �exi plans and subvention plans.

DESCRIPTION STAMP DUTY REGISTRATION CHARGES VAT (ON AGREEMENT VALUE)

MUMBAI 5% 1% of property value (Up to a maximum of INR 30,000) 1% (on Agreement Value)

CHENNAI 8%* 1% of property value (Up to a maximum of INR 30,000) Nil

BANGALORE 5% - 6%** 1% of property value (Up to a maximumof INR 30,000) 4 – 5% (on Agreement Value)

DELHI 4% - 6%** 1% of property value Nil

GURGAON 5% - 7%** Up to a maximum of INR 15,500 Nil

NOIDA 5% - 7%** INR 22,000 Nil

KOLKATA 6% - 7%** 1.1% of property value Nil

PUNE 5% 1% of property value (Up to a maximum of INR 30,000) 1% (on Agreement Value)

*8% on Undivided Share (UDS) of land based on Guidance Value (GV).

**1 - 2% less as rebate, if property registered under women’s name.