GK
BUSINESS MANAGEMENT
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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local taxes
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state taxes
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federal taxes
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None of the above
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Detailed explanation-1: -What is stamp duty? Stamp duty is nothing but a direct tax levied by the government and payable under section 3 of the Indian Stamp Act, 1899 on all documented financial transactions including bills of exchange, letters of credit, promissory notes, letters of credit as well as property transactions.
Detailed explanation-2: -The registration and stamp duty charges remain untouched under the GST on real estate regime. The registration charge is usually 1% of the property value; sometimes, the state may charge it as per the standard fee. On the other hand, the stamp duty is charged at the rate of 5% – 10%.
Detailed explanation-3: -Stamp duty is not subsumed in GST and will be subsumed as per the tax levied by the government.
Detailed explanation-4: -This circular states that even sale of plots after some basic development has been carried out is sale of land per se and is not subject to GST.