Registration rush before March 31 to dodge metro cess, new RR rates

PUNE: Daily property registrations in the city, Mumbai, Thane and Nagpur have picked up momentum in the past 10 days with most consumers preferring to wrap up the process ahead of the implementation of 1% metro cess and announcement of the Ready Reckoner rates on April 1.

Pune district has during the period recorded registration of 27,200 documents, followed by Thane (16,847) and Mumbai suburban (14,282), revealed registration department data up to March 25. Nagpur and Mumbai city recorded registration of 4,078 and 3,064 documents, respectively. The property buyers from the areas where Metro projects are being implemented will have to pay the 1% cess in addition to the stamp duty on sale, gift and mortgage documents executed from April 1, 2022. While the stamp duty would increase to 6% with the cess in Mumbai, it would be 7% in Pune, Nagpur and Navi Mumbai, an official said.

The registration department on Thursday issued a notice that those documents executed by paying stamp duty till March 31 this year would not attract 1% metro cess in these cities as the government had provided relief in stamp duty for two years from April 1, 2020, to March 31, 2022.

Despite the notice, the rush at the property registration offices continued unabated. “If the citizens execute the documents by paying the stamp duty, they can register the documents in the next four months without paying the metro cess,” the official said.

Confederation of Real Estate Developers' Associations of India (Credai) national vice-president Shantilal Kataria said it was clear that if the agreement was executed on or before March 31 the metro cess would not be applicable. “However, the apprehension that the project prices might increase following a possible rise in the RR rates and the increasing raw material cost is triggering the rush.”

State Credai president Sunil Furde said the 1% metro surcharge on all property purchases and the rising raw material prices would impact the consumers. ‘We had requested the state to defer the cess by two years,” he said.