The Times of India 18.07.2017
Property registration department continues collecting 1% Local Body Tax
Advocate Yogesh Mehta, who bought commercial property in the last week of June, is waiting for registration of property with the Inspectorate General of Registration
(IGR) and Stamp Department in the state as there is no clarity on Local
Body Tax (LBT) for property registrations. At present, citizens pay 6%
stamp registration fee (5% is stamp duty fee as per the Maharashtra
Stamp Act and 1% is LBT). “I would prefer to hold on to registration
than pay extra as LBT,” Mehta said.
Bibwewadi (Pune) resident Pravin Bafana
is also holding on to registering his property for clarity on LBT from
the state finance department. “Since GST came into force from July 1, we
are hoping the state government issues a circular to stop collection,
as we do not end up paying more for property registration,” said
Bafana, who booked a property nearby .
The state IGR continues to collect 1% LBT despite the Centre implementing Goods and Services Tax
(GST) from July1and doing away with local body taxes. Citizens
registering immovable properties are continuing to pay 1% more for
registrations under LBT, with no clear direction from the state
government.
IGR officials told TOI stamp registration comes under the Stamp Act
and unless the state government issues a notification they will continue
with the process. `The Stamp and Registration Act is different. On LBT
collection, the state finance department has to issue a circular,”
senior officials from the registration department said.
Senior finance department officials said they would look into the
technicalities. “With octroi gone, LBT should also go and only stamp
duty should be collected, as in other states,” Mehta said.
