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| Dwindling property sales to shrink stamp duty receipts |
| BS Reporter / Mumbai Mar 20, 2009, 01:03 IST |
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Property transactions in Mumbai are set to fall for the first time in four years, resulting in lower stamp duty collection for the state government, property and tax consultants say.
Stamp duty collections in Mumbai are set to fall by 10 per cent for the current fiscal year (2008-09), the first time since 2005-06, according to Vinod Sampat, a tax and legal consultant for stamp duty collections.
The drop in the collection seem marginal because of higher growth registered in the first six months of the current financial year, data compiled by his firm showed.
“The fall will be even sharper if we discount the Rs 250 crore collected by the government from its amnesty scheme unveiled earlier,” Sampat said.
Similarly, the number of documents registered by the Mumbai region is also expected to drop by 4.5 per cent in the fiscal year as sales of properties have slowed owing to a slump in the economy and job market outlook continue to remain bleak. The drop in sales is despite a sharp fall in prices effected by developers in several parts of the city.
However, most of the registration of documents done at the office of the registrar comprised rental agreements indicating a sharp fall in actual sale and purchase transactions, data showed.
Property transactions in the state have dropped by about 2 per cent till February and the situation isn’t likely to change by the end of the current fiscal.
However, first-time buyers seem to be returning to the market after developers dropped prices, Suresh Menon, general manager, Housing Development Finance Corp, said at a meeting today.
“The situation should improve for the better after one quarter,” he said.
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