In a move that came as a surprise to senior officials at the Ahmedabad Municipal Corporation (AMC), the civic body has decided to sell its new properties on sale deeds instead of auctioning them on a 99-year lease. The AMC auctioned four plots on a 99-year lease for Rs 240 crore.
The decision has been made to avoid paying 18% Goods and Services tax on the auction of properties based on lease deeds, a national daily reported.
On Thursday, the standing committee will decide on selling eight shops at the new EWS scheme in Chandkheda at a rate of Rs 1.21 lakh per sq. metre.
AMC officials are taken aback since the civic body published a notice inviting bidders to an auction of 68 shops with a carpet area of 12,868 sq. m for Rs 197 crore at the Sindhu Bhavan parking complex on a 99-year-lease, where it will have to pay Rs 36 crore in the form of GST.
Earlier, the state government’s SGST department directed the AMC to deposit 18% GST as deal from lease deed, the report mentioned. Even as the contentious GST issue fanned debate, the Gujarat
Chapter of Confederation of Real Estate Developers’ Associations of India (CREDAI) asked the AMC to sell its constructed properties with sale documents instead of lease deeds.
The AMC, the report added, brought out a resolution to follow AUDA’s policy of selling properties on a sale deed instead of auctioning constructed properties on a 99-year lease.
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