What fees, taxes and tariffs do you have to pay for apart from the land?
Plotted developments have gained acceptance and popularity over the last few years. The reason behind this is the benefits offered by these real estate investments. Plots are flexible in many ways. People can keep the plots as such until they are ready to build a home or they can even resell the plot without much hassle. These plots also come at affordable prices and with a multitude of amenities that aren’t available in a conventional plot.
However, just like any villa, apartment or any real estate investment, plots also come with several miscellaneous hidden charges. Keep reading to know what they are to avoid surprises.
1. Registration charges
Registration fee or stamp duty rate is a compulsory fee that varies with each state and the total worth of the plot. It is the amount paid by the owner to get the plot registered in his/her name. The registration fees usually range from 5% to 7 % of the total plot value. There are several other miscellaneous charges like court fee, notary/lawyers fee, etc. under the registration cost.
Different standards are used to calculate the registration and stamp duty. When it comes to plots, the sq ft area of the plot is multiplied by the prevailing guideline value of that area. These charges are bound to change from time to time. In Bangalore, the registration fee of a plot is 1 % of the total worth of the plot while the stamp duty ranges 2-5% according to the price slab of the plot you fall in. Click here to get a better understanding about how this fee works.
2. Maintenance costs
Most of the plotted developments come with upfront maintenance fees/deposits for a longer period. This charge also varies from plot to plot depending on the amenities offered in the plotted development. This fee is also subjected to the locality, land value and type of plotted development.
3. Taxes
A piece of land sold without any construction or amenities is free from GST. However, when a plot is sold with basic amenities that can be classified as ‘supply of services’, it becomes liable for GST charges. These amenities can be anything from pipelines to cables. The plots without any kind of developments are considered as immovable properties and thus are kept out of the GST.
The plotted developments with basic amenities are charged 18% GST during the sale.
Plotted developments come with a lot less paperwork and tension when compared with other real estate investments. However, that doesn’t make the plots immune to hidden charges. But knowing about these charges beforehand will help you in planning your finances better. Mantri KNS Carica is a mega plotted development that offers 384 branded plots in Kengeri spread over 22 acres of blooming terrain. They come in affordable prices and are located in an upcoming part of South Bangalore. If you are looking for hassle-free and secure documentation amidst all types of charges and procedures along with a risk-free investment way, branded plots are the ones to go with!