Additional Stamp Duty for Skyscraper Apartments - Bangalore Guidance Value

The Department of Stamps and Registration in Karnataka in order to generate more revenue seems to have followed the footsteps of the builders to charge additional fee that are called as floor rise fee. The guidance values in Bangalore and norms specified that a floor, infrastructure and amenities based evaluation system will be included.

According to the new valuation system a 0.5% premium will be added for every floor beyond the 6th floor and capped at 5 % that will be a flat fee beyond the 15th floor.

Since, the cost of construction increases with every additional floor, builders or property developers say that the additional charges are borne by the appropriate buyers.  Many do wonder, whether this new valuation system is a step to increase revenue to the Department and would affect the potential buyers. It is also likely that many questions will rise from both the buyers and builders.  A question has also raised that whether these acts will reduce the growth of realty industry in Bangalore.  Many experts say that the consequences of these steps from the government and the Center’s Land Reform Bill would leave an interesting impact in the Bangalore real estate market.  Most of the real estate investors also expect that this may lead to short term variations in realty prices tailed by a reduction in growth rates.

The amenities based valuation system is listed into different amenities as a group and the charges are levied on the builder for providing more than five amenities.  The below are few groups:

1. Running track, cycling track, walking track Jogging track, pebble pathway, reflexology path and similar kind of conveniences.
2. ATM, bank, HOPCOM, Janatha Bazar, Provision store, supermarket, Canteen, mall, commercial space, plaza, cafeteria, and similar types of amenities.
3. All types of play ground amenities Basketball, Badminton, Hockey, Golf field, Baseball, Tennis, Football, Cricket, and more.
4. Indoor swimming pool, wading pool, kids’ pool, aqua gym and similar amenities.
5. Elevator, mechanical lift for car park, cargo lift, high speed elevator and similar amenities.
6. Manned security with video surveillance intelligent security Wi-Fi Internet parlor, surveillance of common area, CCTV, UPS, kiosk, motion sensor based lighting multi camera security, Gated community, Intercom, video conference facility, generator, visitor tracking system and similar types of amenities.
7. Golf Field and Helipad.
8. Outdoor amphitheater,  open stage, open air theatre, and similar types of amenities.
9. IP door lock, prepaid power supply, piped cooking gas supply, Home automation, smart home, gas, bank, gas detector.
10. Proximity to bus station, railway station airport (Within 5 km).

These additional charges will be based on the guidance values and may ultimately be borne by the buyer.

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