\nMunicipal corporation<\/strong><\/td>\nStamp Duty<\/strong><\/td>\nLBT (Local Body Tax)<\/strong><\/td>\nMetro Cess<\/strong><\/td>\nOverall Stamp Duty<\/strong><\/td>\n<\/tr>\n\nMumbai(BMC)<\/strong><\/td>\n5%<\/strong><\/td>\n0%<\/strong><\/td>\n1%<\/strong><\/td>\n6%<\/strong><\/td>\n<\/tr>\n\nThane (TMC)<\/strong><\/td>\n5%<\/strong><\/td>\n1%<\/strong><\/td>\n1%<\/strong><\/td>\n7%<\/strong><\/td>\n<\/tr>\n\nNavi Mumbai<\/strong><\/td>\n5%<\/strong><\/td>\n1%<\/strong><\/td>\n1%<\/strong><\/td>\n7%<\/strong><\/td>\n<\/tr>\n\nKDMC<\/strong><\/td>\n5%<\/strong><\/td>\n1%<\/strong><\/td>\n1%<\/strong><\/td>\n7%<\/strong><\/td>\n<\/tr>\n\nVVMC<\/strong><\/td>\n5%<\/strong><\/td>\n1%<\/strong><\/td>\n1%<\/strong><\/td>\n7%<\/strong><\/td>\n<\/tr>\n\nPune<\/strong><\/td>\n5%<\/strong><\/td>\n1%<\/strong><\/td>\n1%<\/strong><\/td>\n7%<\/strong><\/td>\n<\/tr>\n\nPimpri Chinchwad<\/strong><\/td>\n5%<\/strong><\/td>\n1%<\/strong><\/td>\n1%<\/strong><\/td>\n7%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<\/span>1- Local Body Tax (LBT)<\/span><\/h3>\nImage: NMCutilities<\/i><\/p>\n
Local Body Tax (LBT) is an additional tax levied by the municipal corporation during the property registration process. In Maharashtra, LBT is 1% of the property value, except in Mumbai (BMC) where it is not applicable. This tax is paid along with the stamp duty to the government.<\/p>\n
<\/span>2- Metro Cess<\/span><\/h3>\nMetro Cess is a tax imposed by the government to fund transport infrastructure projects like metros, bridges, and flyovers within the state. The Metro Cess is set at 1% of the property value and is paid alongside the stamp duty.<\/p>\n
<\/span>Registration Charges<\/span><\/h3>\nImage: Bank Bazar<\/i><\/p>\n
Registration Charges are fees levied by the government to record the property details in official records. This fee is either 1% of the agreement value or \u20b930,000, whichever is lower. Essentially, it translates to 1% for agreement values less than \u20b930 lakhs and \u20b930,000 for agreement values more than \u20b930 lakhs.<\/p>\n
<\/span>Difference Between Stamp Duty and Registration Charges<\/span><\/h3>\nWhile the\u00a0Stamp Duty is a tax imposed to register the property under the buyer’s name,\u00a0Registration Charges are the fees incurred to record the property details. Both are essential but serve different purposes in the property registration process.<\/p>\n
<\/span>Goods and Services Tax (GST)<\/span><\/h3>\nImage: MyGate<\/i><\/p>\n
GST (Goods and Services Tax) is applicable on the agreement value when purchasing an under-construction property. It is not applicable to ready-to-move-in properties or projects that have received an Occupancy Certificate (OC).<\/p>\n
\n1% GST<\/strong> for affordable projects with an agreement value of less than \u20b945 lakhs.<\/li>\n5% GST<\/strong> for other projects with an agreement value of more than \u20b945 lakhs.<\/li>\n<\/ul>\n<\/span>How These Government Taxes Are Paid<\/span><\/h2>\n<\/span>1) Stamp Duty and Registration (SDR)<\/span><\/h3>\nBoth stamp duty and registration charges must be paid directly to the government within 45 to 60 days of booking the property, provided the builder has all the necessary sanctions. This process is usually handled by a separate agency hired by the developer. Buyers also need to pay an extra charge ranging from \u20b95,000 to \u20b915,000 to the agency for handling the registration process.<\/p>\n
The builder’s CRM department typically sends a mail to the buyers stating the stamp duty amounts along with the agency’s account details. The agency then pays the amount to the government on behalf of the buyers through the government site.<\/p>\n
If the buyer is taking a loan, they must have a sanction letter from the bank before paying the SDR. This letter assures the builder that the remaining payments (about 80% to 90%) will be received from the bank. Without this letter, if the desired sanction amount is not granted, the builder might face issues as the property is already registered in the buyer’s name.<\/p>\n
<\/span>2) GST<\/span><\/h3>\nUnlike SDR, where the complete amount is paid at once within 60 days, GST is paid in installments as per the construction progress (slab-wise). This means buyers need to pay GST on the amount paid to the builder at each stage of construction.<\/p>\n
<\/span>Example:<\/strong><\/span><\/h3>\nIf the agreement value is \u20b950 lakhs and the buyer pays a booking amount of \u20b91 lakh, then \u20b95,000 needs to be paid as GST on \u20b91 lakh. Subsequently, if the bank pays the builder \u20b95 lakhs, the buyer needs to pay 5% GST on that amount, i.e., \u20b925,000. This process continues until the possession of the property.<\/p>\n
<\/span>Detailed Example: Calculating Taxes on Property Purchase in Mumbai<\/span><\/h3>\nLet’s suppose you’re purchasing a 2 BHK flat costing \u20b950 lakhs in Mumbai. Here\u2019s how the taxes break down:<\/p>\n
\nStamp Duty (6%)<\/strong>: \u20b93 lakhs<\/li>\nRegistration<\/strong>: \u20b930,000 (1% or \u20b930,000, whichever is lower)<\/li>\nGST (5%)<\/strong>: \u20b92.5 lakhs<\/li>\n<\/ul>\nThus, the total stamp duty and registration charges of \u20b93.30 lakhs must be paid within 2 months. The GST of \u20b92.5 lakhs will be paid in installments as per the construction progress.<\/p>\n
<\/span>Payment Scenario:<\/span><\/h3>\nIf only 30% of the work is done, and the client gives a token amount of \u20b91 lakh:<\/strong><\/p>\n\nGST on \u20b91 lakh<\/strong>: \u20b95,000<\/li>\nRemaining payment<\/strong>: \u20b914 lakhs<\/li>\nGST on \u20b914 lakhs<\/strong>: \u20b970,000<\/li>\n<\/ul>\nThe client\/bank will continue to pay the GST on every payment made to the builder until possession.<\/p>\n
<\/span>Demo Quotation for a 1 BHK Flat (450 sq ft)<\/span><\/h3>\nFloor Rise Charges:<\/strong><\/p>\n\n1st to 7th Floor: \u20b90<\/li>\n 8th to 15th Floor: \u20b92 lakhs<\/li>\n 16th to 22nd Floor: \u20b94 lakhs<\/li>\n<\/ul>\nBreakdown:<\/strong><\/p>\n\nBasic Flat Cost: \u20b948,00,000<\/li>\n Floor Rise: \u20b92,00,000<\/li>\n Agreement Value (AV): \u20b950,00,000<\/li>\n Stamp Duty (6%): \u20b93,00,000<\/li>\n Registration (1% of AV or \u20b930,000, whichever is less): \u20b930,000<\/li>\n GST (5%): \u20b92,50,000<\/li>\n Total: \u20b957,80,000<\/li>\n<\/ul>\nConsidering a 90% loan and 10% downpayment with 30% current due:<\/strong><\/p>\n\nDownpayment (10%)<\/strong>: \u20b95,00,000<\/li>\nStamp Duty (6%)<\/strong>: \u20b93,00,000<\/li>\nRegistration<\/strong>: \u20b930,000<\/li>\nGST on Due (5% on 30%)<\/strong>: \u20b975,000<\/li>\nTotal Own Contribution<\/strong>: \u20b99,05,000<\/li>\nHome Loan Amount (90%)<\/strong>: \u20b945,00,000<\/li>\nFirst Disbursement<\/strong>: \u20b915,00,000<\/li>\nCustomer Down Payment<\/strong>: \u20b95,00,000<\/li>\nFirst Disbursement by Bank (20%)<\/strong>: \u20b910,00,000<\/li>\nPre-EMI (10 lakhs 7%):<\/strong> \u20b97,000 (increasing with construction progress)<\/li>\n<\/ul>\n<\/span>Process Of Payment :<\/span><\/h2>\n <\/p>\n
\nGo to the official website of the Maharashtra Government Department of Registration and Stamps.<\/li>\n<\/ul>\n <\/p>\n\nIf you have already registered, log in using the existing credentials.<\/li>\n<\/ul>\n\nIf you have not registered, choose the option of \u2018Pay without Registration<\/li>\n After this, you will be redirected to a different page. Select the option of \u2018Citizen\u2019 and then click on the type of transaction for proceeding.<\/li>\n<\/ul>\n