Market Value And Agreement Value

Since the amendment introduced by the 2010 Finance Law, the government collects the tax on the services of housing buyers in projects under construction. The service tax is only levied on 25% of the total value of the accommodation, since a 75% reduction is allowed. With a service tax of 15% applicable from June 1 of this year, the buyer will pay a service tax of 3.75% on the total value of the property. It is possible that the value accepted by SVA cannot always represent fair value (FMV) or that the seller himself is not satisfied with the factors he knows. Although stamp duty is usually borne by the buyer, the buyer may not be very concerned about the assumed value of SVA, given that the amount they would spend as stamp duty would be meagre compared to the purchase costs. It does, however, make a big difference to the seller, as it has an impact on their income tax, which can be considerable based on value. If the stamp duty is not borne by the seller, he cannot contest or contest the value accepted by the ASA before the valuation authorities. The market value is determined by the annual billing value (RSA) set and published annually on 31 December, in accordance with the Maharashtra Stamp Act (59 of 1958) and the Maharashtra Stamp (Determination of True Market Value of Property) Rule, 1995. Real estate valuation is not only an evaluation nowadays, but requires a thorough study and understanding of the subject with laws, rules and regulations relating (notification / circular) and with the most recent changes. Please check the value of the stamp duty before drawing any conclusions. Due to the large population, there is still a high demand for real estate in India and the demand is usually greater than the supply.

This correlation of demand and supply and people`s desire to own more leads to an inflation in the value of real estate and in turn represents huge profits in the hands of the seller. Such profits are unlikely to fall out of the tax class. The acquisition of a property in India on the market means that it is the price at which the property is sold on the open market. Generally speaking, the market value is always higher than the value of the agreement. There is no defined formula for calculating the market value of a property. The most common practice used to estimate market practice is the exposure of similar property sales authorities nearby. Fair market value is the value that gives the idea of how much money can be earned by selling the property at the right time. Market value has nothing to do with stamp duty..

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