Stamp Duty on MIDC land should not be charged on market rates: COSIA

Source: The Hitavada      Date: 11 Jan 2019 09:23:26


 

Business Bureau,

A delegation of Chamber of Small Industry Associations (COSIA) led by CA Julfesh Shah, core committee member met Subhash Desai, Maharashtra Minister for Industries and apprised him of the various issues faced by the industries in the Vidarbha.


He also submitted a memorandum. The significant points of the memorandum include the ready reckoner rates prescribed by the Government of Maharashtra for payment of Stamp Duty on the transactions of sale/purchase of immovable, which in many cases, is higher than the market value or the saleable value of the property. This ready reckoner value is also considered for calculation of Income-Tax liability on the buyer and seller. Hence, the buyers and sellers are put to unnecessary hardship due to higher ready reckoner rates. It is strongly pleaded that the ready reckoner value be rationalised, since it affects the liability under other laws.


Further, for land including industrial land, the rate of which is regulated by the MIDC or another Government authority, ready reckoner value should be equal to the prescribed Government/ MIDC rate. Also Gram Panchayat or local body property tax should be abolished as it leads to double taxation. This will help in avoiding the hardship in purchasing the land in industrial area and any other place. The memorandum also stated that the supply to PSUs or corporate sector by MSMEs should be on RCM basis.


The Minister assured the delegation to take needful action for resolving issues and appreciated the working of COSIA, Vidarbha Chapter. Members Pranav Ambaselkar, Sunil Jejani were present on the occasion.