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YOU MAY STILL HAVE TO PAY STAMP DUTY ON BUILT UP AREA

carpet-areaProspective flat owners in the state will not be able to avail of a legal amendment that may have pinched less on stamp duty, thanks to a lapse on the state government’s part. A few months back, the state government amended the Maharashtra Ownership of Flats Act, 1963, making it mandatory for builders to sell flats on the basis of carpet area and not on built-up area as was the practice. Carpet area is the actual area flat owners get possession of, whereas built-up area denotes the common area, such as the staircase, passage and so on, although its cost is included in overall property prices. In what appears to be an administrative lapse, the government has left the Stamp Duty Act unattended. Meaning, from January 1, flat owners will pay for carpet area, which is less than the built-up area. But they will continue to pay more stamp duty because it will be levied on built-up area. Making the department’s position clear, the officials conform that they already issued instructions to department officials to charge stamp duty on the basis of carpet area. However, sub-registrars and other officials department deny receiving any such order. Whereas sources in the town planning department informed the media that they are still studying the proposal of charging stamp duty on carpet area. And only after certain issues are clarified they’ll take a final decision. Bureau report – NMTV News.

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