Response from Mr.Suraj Asrani, COO, Cornerstone Properties

The recent upward revision in guideline values is going to increase the burden on property buyers. Hounded by a slowing economy, currency crisis and poor off-take of commercial spaces, the revised guideline values will further compound the woes of the realty sector. With the onus of stamp duty payment and registration on the buyer, it is going to result in a considerable increase in payout.

Most transactions in the property residential market are funded by banks and HFI’s so deals being registered at full transacted values have largely been the norm. This move will only increase the revenues to the government further adding to the burden of taxes on the home buyer.

Another arbitrary move is linking the guideline value to the amenities provided in the project, despite the fact that these amenities enhance and add significant value to a project. Taxing these amenities which builders provide for the residents is unfair as demand supply dynamics help foster project innovations, which result in providing a  better environment and social infrastructure.

In effect a builder providing additional amenities should acquire a setoff in the guidance value, as the facilities delivered actually reduce pressure on civic amenities that the government should provide and maintain.

Today, a large percentage of real estate expenses comprises of taxes, fees, cesses and surcharges. By further compounding this, the government will no doubt increase its revenues but at the cost of an already overburdened common man