There are some purchase taxes you have to pay while buying the villa, house in Goa, or apartment, which is beyond the sale price. These expenses are for the registration of the property and stamp duty. How much you will have to pay depends on the purchase price of the real estate, and also on the government rates, which keeps changing from time to time. So it is good to check the current rate at the time you are making the purchase.
As an estimate, the cost of registration and stamp duty was about 30% of the property price. However, this has since then been reduced for the convenience of buyers and to help the sellers clear their inventory. The local government collects the money to fund various development activities. All Indian states, including Goa, charge the registration fee and stamp duty for property purchases.
This is the process of registering a sale deed with the right authority, which is the registering officer at the sub-registrar’s office. This is very important because you will become the legal owner only after the property is registered in your name. Just a sale doesn’t give you any legal rights till the time you have registered it.
Property registration includes stamping and paying the registration fee for the sales deed. Documents required include:
Property mutation is the next step after registration. This is the process of changing the title ownership. When you mutate the property, your name will be recorded as the rightful owner with the land revenue department. The government can then charge property tax from you.
The registration fee is different in each state of India. In Goa, this is 1% of the value of the agreement according to the sale deed. But there is a maximum limit of Rs 30,000. So if you are buying a villa for 1 crore (10 Million), then its 1% would come to Rs.100,000. But you will still have to pay only Rs 30,000 because of the maximum limit imposed by the government.
This is the duty levied on legal recognition of the real estate. This is a mandatory payment that must also be made to the government. Buyers have to pay the stamp duty on the sale agreement as per the Indian Stamp (Goa Amendment) Act, 2013. Every Indian state charges stamp duty on property purchases, and the rate once again varies from one state to another. In Goa, it varies between 0.6% and 2.1%. How much you will have to pay depends on the valuation made by the appointed Registrar of the area.
So for buying a villa for 2 crores (20 million), your stamp duty will come to Rs. 420,000 (about 6,000 US$). For a small apartment for 5,000,000, it will be Rs. 30,000 (about 428 US$). The stamp duty payable is split between the time of sale agreement and the time actual deed of sale.
The stamp duty charged by Goa was much higher before, but the authorities have recently brought it down, especially for apartments in housing societies.
There are some other taxes payable too apart from the registration fee and the stamp duty. This includes the value added tax on property. In Goa, it is 1%.
Plus, there are also service taxes, which are levied by the Central government on under construction properties. This is payable to the developer at the time the installments are paid for the property. But there is no service tax if the completion certificate for the property has already been issued.
There are also customs and excise levied on the builder for materials used in construction. The developer will pay these taxes, but typically, most of them will pass it on to the buyer in the form of higher real estate prices.
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