Hard-pressed to meet its rising expenses due to the implementation of schemes like farm loan waivers and infrastructure projects, the cash-strapped state government is hiking the revenue collection target for the department of registration and stamps by 10 per cent, to about Rs 23,500 crore from Rs 21,000 crore.Stamp duty and registration charges on property transactions are the second-highest revenue source for the state government after state goods and services tax (SGST).”As on mid-December 2017, the collections through stamp duty and registration fees stand at Rs 16,668 crore, which is almost 80 per cent of the Rs 21,000 crore target. The highest percentage of revenue has come from conveyance deeds (54.8 per cent), followed by mortgages (12.3 per cent), leave and license agreements (10.3 per cent), power of attorney (4.7 per cent) and gift deeds (4.1 per cent). A total of 14,59,552 documents have been registered up to December 11,” the official said.The Mumbai region has also achieved over 70 per cent (Rs 6,487 crore) of its Rs 9,250 crore target.”Though we hope to achieve the revised target, real estate transactions have slumped in markets like Mumbai. However, since the new ready reckoner (RR) rates will come into force from April 1, 2018, we feel property registrations may surge in March on expectations of a rate hike,” the official noted.Officials said SRA and redevelopment projects in Mumbai were held up in areas like the Kurla taluka after the court’s ban on new constructions in Mumbai due to the failure in solving the problem of the city’s dumping grounds. This led to lower revenues being hit due to lower registrations of conveyance deeds of development projects.HELPS THE POCKETStamp duty and registration charges on property transactions are second-highest revenue source for the state government after state goods and services tax. Mumbai region has also achieved over 70 per cent (Rs 6,487 crore) of its Rs 9,250 crore target.
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<!– /11440465/Dna_Article_Middle_300x250_BTF –>The real-estate market in the state may be showing a slump as is evidenced by falling registrations of property transactions.Senior officials said that the department of registration and stamps had registered lesser documents this year compared to the previous fiscal. “By October-end, the total number of documents registered was around 12,54,075 which is marginally lower than the 12,88,527 registered in the same period last year,” an official added.”Real-estate transactions have fallen. SRA and redevelopment projects in Mumbai were held up in areas like the Kurla taluka after the court’s ban on new constructions in Mumbai due to the failure in solving the problem of the city’s dumping grounds. This led to our revenue being hit as we get around Rs 20 to 30 crore from one such project. A major chunk of our revenues come from conveyance deeds of development projects,” he explained.In 2016-17, a total of 20.46 lakh registrations were logged in, which was lower than the 23 lakh in the previous fiscal. This was largely due to the demonetization of high-value currency notes on November 8, 2016.”This year, conveyance deeds account for 54.7% of volumes among the total documents registered, followed by mortgages (12.4%), leave and license (10.7%), power of attorney (4.5%) and leave and license (4.3%),” the official said.Official noted that more sales and purchases of flats had been logged in before June, when the Real Estate (Regulation and Development) Act, 2016 (RERA) came into force. “This led to additional revenue of around Rs 1,000 crore in a month. Hence, the fall in real estate transactions cannot be interpreted as a slump in the real-estate sector,” he added.However, the department, which is the second highest revenue grosser for the Maharashtra government after state goods and services tax (SGST) has something to cheer about. A hike in the ready reckoner rates has ensured a rise in the revenues through stamp duty and registration fees, with Rs 13,711 crore being collected by October-end, compared to the lower Rs 11,854 for the same period last year.
<!– /11440465/Dna_Article_Middle_300x250_BTF –>The Jammu and Kashmir assembly may have passed a resolution on implementing GST while safeguarding its special status but it has no validity till it is endorsed through a presidential decree. “After we receive the presidential order, we will take it to the assembly for enacting an SGST (state goods and services tax) bill,” Finance Minister Haseeb Drabu said today. The presidential order will be received under Article 370 of the Constitution that grants special status to the state. The PDP-BJP alliance government had moved a resolution in the assembly yesterday. The move was dubbed a “sham” by the opposition National Conference, which said the state cabinet could have simply moved a resolution seeking a presidential order rather than bringing it to the floor of the assembly. Drabu said in his reply to the discussion on GST in the assembly yesterday that the government was not required to bring the resolution but it did so to “get a sense of the house on the issue”. According to M I Qadri, former advocate general of the state, the state government could have brought its own GST legislation in the assembly instead of seeking a presidential order. “This is akin to surrendering the powers to impose and collect taxes,” he said. “Jammu and Kashmir has so many parallel laws to national laws like the RTI Act. The state government could have brought a GST law of its own in the assembly which would give powers to the state for imposing and collecting taxes,” he added. Qadri said the state government was seeking overriding powers on taxation under the new GST regime. This was the first time in the history of the Jammu and Kashmir assembly that a resolution, seeking a presidential order on a constitutional amendment, was discussed and passed in the house.(This article has not been edited by DNA’s editorial team and is auto-generated from an agency feed.)
<!– /11440465/Dna_Article_Middle_300x250_BTF –>With less than a month left for GST rollout, seven states, including West Bengal, Tamil Nadu and Jammu & Kashmir, are yet to pass their legislations required for implementing the new indirect tax regime. So far, 24 states and Union Territories, including Delhi, Odisha and Puducherry, have passed the State Goods and Services Tax (SGST) Act in their respective legislative assemblies. However, seven states — Meghalaya, Punjab, Tamil Nadu, Kerala, Karnataka, Jammu & Kashmir and West Bengal — are yet to pass the SGST law. Baring Jammu & Kashmir where BJP is an alliance partner of PDP, all are non-BJP ruled states. The government plans to roll out the Goods and Services Tax (GST), which will subsume 16 different taxes, from July 1. West Bengal wants the Centre to delay roll out of the GST by a month and the issue was raised by state Finance Minister Amit Mitra at the meeting of the GST Council last week. Mitra said that implementation of the GST from July 1 will have “serious problems” as the IT infrastructure required to manage GST’s returns and invoice uploading are not in place. “So far, GSTN has been able to do test drive on 200-300 companies in each state. Forms and rules have been changed in May. The (Union) finance minister has to decide whether it should go ahead with the biggest fiscal reform when the IT preparedness is not 100 per cent,” Mitra had said. As per the GST Constitutional amendment, all states have to pass SGST bills by September 15, 2017, failing which they will lose their taxation powers.(This article has not been edited by DNA’s editorial team and is auto-generated from an agency feed.)
<!– /11440465/Dna_Article_Middle_300x250_BTF –>The Maharashtra Legislature will begin a special three-day session from tomorrow to pass the state Goods and Services Tax (SGST) bill. The legislature will pass three bills the main 116-page SGST Act, a bill related to the Compensation to Local Authorities and a bill on to the existing state laws that are to be repealed when the SGST comes into effect from July 1. This is for the first time that the Legislature will have a sitting on a Sunday, that is May 21. Sources in the Vidhan Bhavan said that the main SGST bill will first be tabled in the Legislative Assembly for debate and passage on May 20. On the same day, the Legislative Council will debate on the main SGST bill later in the afternoon, the sources said. “It shall depend upon the state Legislature whether to adopt both the main SGST and Compensation bills together or separately for debate and passage. The passage of the third bill pertaining to abolition of some Acts is expected to be a mere formality once the two main bills are passed,” the source said. The main SGST bill will seek to confer powers upon the state to levy the tax on supply of goods and services or both which takes place within the state. It shall empower the state to levy taxes on all intra-state supplies of goods and services or both, except on supply of alcoholic liquor for human consumption, at a rate to be notified not exceeding 20 per cent. The third bill deals with the state Acts to be repealed with the passage of the Maharashtra Goods and Services Tax (MGST) Act 2017. These include Betting Tax Act-1925, Purchase Tax on Sugarcane Act-1962, Advertisements Tax Act-1967, Forest Development (Tax on sale of Forest Produce by Government or Forest Development Corporation Act-1983, Tax on Luxuries Act-1987, Tax on Entry of Motor Vehicles into Local Areas Act- 1987, Tax on Entry of Goods into Local Areas Act-2002 and the Maharashtra Tax on Lotteries Act-2006.(This article has not been edited by DNA’s editorial team and is auto-generated from an agency feed.)
<!– /11440465/Dna_Article_Middle_300x250_BTF –>The Goods and Services Tax (GST) Council, which is racing against time to finalise draft legislations for implementing the unified indirect tax across the country by July 1, on Saturday approved the draft state compensation law at its meeting in Udaipur.The council, chaired by Union Finance Minister Arun Jaitley, also provided clarifications on recommendations sent by it to the legal committee on three other laws – Central GST, state GST and integrated GST – which have to be cleared by the Parliament in the second part of the Budget session beginning March 9 so that the July 1 deadline for the roll out of GST is met.“In today’s meeting, we have moved forward in the legislative drafting,” Jaitley briefed the press after the council meeting.The FM said the draft compensation law will now be sent to the Cabinet for approval and placed in the Parliament in the coming session; “compensation law, which will make good losses of states due to GST for the first five years, has been formally approved by the GST Council. It will be taken to the cabinet for approval. We will try to pass it in the second part of the Budget session”.He said the council was expecting the other three draft laws also to be finalised in its next meeting to be held on March 4 and March 5 in Delhi.If the model laws were ready before the second part of Budget session then Jaitley said CGST, IGST and Compensation Bills would be passed in the Parliament and the SGST law would be cleared by state legislatives.He said there were many contentious issues that came up for clarification by the legal committee of the council that vets the draft laws.These related to appeal tribunals at the Centre and in states, its constitution, eligibility and delegation of power.There were also concerns over the exemptions that needed to be given during the transition phase to the industry by way of more time to prepare. How to categorise works contract; where to put it under services and value added tax (VAT), definition of agriculture and other such issues needed to be sorted out by the council.“The council has given its opinion on these issues through a consensus. Laws (CGST, SGST, IGST and compensation law) are finalised, only these clarifications have to be incorporated in them. Hopefully, we will try to clear the laws on March 4 and March 5,” said the Jaitley.