Following the unexpected announcement of service tax implementation on new residential properties from the next financial year, potential buyers in Ahmedabad will end up paying more for their dream home. Therefore, to avoid the additional burden of these taxes, people have started booking homes before the D-day - April 1, 2010 - approaches.
This has increased the flow for registration at Ahmedabad's registrar offices - up by around 20% more than the normal days, said an official from the state revenue department.
Earlier, the buyer was supposed to pay only the value added tax (VAT) but with the additional burden of service tax put on the builder; the latter will transfer it on to the end user. This means the home becomes costlier for the buyer.Therefore, many are opting to book their properties before the service tax is implemented.
Sub-registrar of Memnagar registrar office, Shrenik Shah, - that covers most of the west and new west zone areas - said: "We see an average of 50 registrations daily these days. These figures are some 20% higher than the January-February months."
Memnagar registrar office covers Ambli, Bopal, Bodakdev, Changeshpur, Ghuma, Habatpur, Memnagar, Vastrapur, Thaltej, Shilaj and Shekhpur-Khanpur (normally know as Navrangpura-Ashram road) areas. Realty experts suggest that buying the property in full down payment will help you save an additional 3% service (indirect) tax on the entire housing cost.
Commenting on this , secretary of the Gujarat Institute of Housing and Estate Developers (GIHED), Dipak Patel said "Yes, buying the home in full down payment before March 31, 2010 will allow them to save 3% on the housing cost. However, it's only possible when the property is ready and registration of the same is done before the mentioned date."
Comments