Bangalore Guidance value 2013: High rise apartments pay more stamp duty
- Published on Tuesday, 03 September 2013 12:08
- Written by Vijay Viswanathan
The new guidance values in Bangalore and norms stipulated along with them include a floor based and amenities based valuation system. Builders often charge additional fee which are often termed as floor rise fee. The Department of Stamps and Registration in Karnataka seems to have embraced this idea to generate more revenue.
This new valuation system adds a 0.5% premium for every floor beyond the 6th floor. This additional fee has a cap of 5% which ensures that only a flat fee of 5% is charged beyond the 15th floor.
Builders often argue that the cost of construction increases with every additional floor and hence the additional charges are borne by the appropriate buyer. The additional stamp duty for floor rise seems to be a puzzle for home buyers. Do the authorities intend to limit the vertical growth? Is this a step to increase revenue to the Department? If it is a measure to increase revenue for the Department of Stamps, will it affect the buying habit of consumers? There are numerous questions which may linger in the minds of buyers and builders alike. Will these acts slow down the growth of realty industry in Bangalore? It would be interesting to see the repercussions of these steps from the Government along with the Center’s iconic land reform bill. Many real estate investors anticipate short term fluctuations in realty prices followed by a slowdown in growth rates.
The amenities based valuation system lists different amenities as a group and charges the builder for providing more than five amenities. These additional charges will be based on the guidance values and may eventually be dumped on the buyer. Hence from the sixth group, there will be an increase of 1% of super built up area (S-BUP) up to a maximum of 10%, charged as an additional premium to the stamp duty and floor rise valuation premium.
The 15 different groups are:
Exempted:
a) Rain Water Harvesting, Solar Power, Solar water heater, Fire fighting, Fire Prevention, Green Building concept low carbon material usage and similar types of amenities.
b) Sewage treatment plant, solid waste management, individual garbage chute, Reflective roofs, water recycling / reuse Plants. (These amenities are fully exempted)
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- Club house, community hall, indoor amphitheater, conference hall, health club, temple, party hall, card room, reading room, library, banquet hall, dance and karaoke hall, party area, party lawn, carom room and similar types of amenities.
- Jogging track, running track, cycling track, walking track, pebble pathway, reflexology path and similar types of amenities.
- Children play area, tot cot, children game area, garden, water body, decorative pool, plantation garden, barbeque pits, crèche, landscape area, fountain and similar types of amenities.
- Canteen, mall, commercial space, ATM, bank, HOPCOM, Janatha Bazar, Nandini Milk out layout, Provision store, lounge and foyer, cafeteria, supermarket, plaza and similar types of amenities.
- All types of outdoor play area, Badminton, Tennis, Basket ball, Volley ball, Base ball, Cricket, Football, Hockey, Golf field and similar amenities.
- All types of indoor game areas, squash, snooker, Table tennis, Indoor games area and similar amenities.
- Swimming pool indoor, kids pool, wading pool, aqua gym and similar amenities.
- Cargo lift, elevator, mechanical lift for car park, high speed elevator and similar amenities.
- Surveillance of common area, manned security with video surveillance intelligent security, motion sensor based lighting multi camera security, CCTV, Gated community, Intercom, Wifi Internet parlor, video conference facility, generator, UPS, kiosk, visitor tracking system and similar types of amenities.
- Helipad and Golf Field.
- Outdoor amphitheatre, open air theatre, open stage and similar types of amenities..
- Health clinic, ayurvedic parlor, massage parlour, beauty parlour, spa, aerobics, yoga, meditation, unisex parlour, Steam and Sauna Jacuzzi, gym, day care center, health club and similar types of amenities.
- Indoor amphitheatre, dance and karaoke hall, drama stage, home theater hall.
- Home automation, smart home, IP door lock, prepaid power supply, piped cooking gas supply, gas, bank, gas detector.
- Proximity to airport, railway station, bus station (Within 5 km.)
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