MIDC Transfer Charges; calculation & meaning?
Understanding MIDC Transfer Charges
What are MIDC Transfer Charges?
When ownership of an industrial plot allocated by MIDC (Maharashtra Industrial Development Corporation) is transferred to another party, a transfer fee is levied by MIDC. This fee helps regulate industrial development within the corporation’s jurisdiction.
Types of Transfers:
There are two main types of MIDC plot transfers:
- Formal Transfer: This involves a complete change of ownership, with all necessary paperwork filed at the MIDC office.
- Non-Formal Transfer: This occurs when ownership changes without official MIDC involvement, such as within a family. However, MIDC will need to be notified in the future if a formal transfer is ever required.
Calculating Transfer Charges:
The transfer fee amount depends on the development status of the plot and is calculated as a percentage of the “differential premium” or the current MIDC value of the property.
- Differential Premium: This is the difference between the original price you paid for the plot and its current market value as determined by MIDC.
Developed vs. Non-Developed Plots:
- Developed Plot: The transfer charge is 10% of the differential premium.
- Non-Developed Plot: The transfer charge is a steeper 30% of the differential premium, incentivizing development.
Example:
Let’s say you own a 1000 sq meter MIDC plot purchased for ₹10,000 per square meter, making the original price ₹10,000,000. The current MIDC value is ₹25,000 per square meter, resulting in a current value of ₹25,000,000.
Differential Premium Calculation:
Current Midc value – Original Midc price = Differential premium
₹25,000,000 – ₹10,000,000 = ₹15,000,000
Transfer Charge Calculation (Developed Plot):
10% of Differential premium 10% * ₹15,000,000 = ₹1,500,000
Transfer Charge Calculation (Non-Developed Plot):
30% of Differential premium 30% * ₹15,000,000 = ₹4,500,000
Additional Considerations:
There might be additional charges for administrative fees, change of industry type on the plot, etc. In some cases, there may be a time restriction (moratorium) during which you cannot transfer the plot. MIDC might offer exemptions or reductions in transfer charges under specific circumstances to promote industrial development.
Other Considerations:
Additional Charges: There may be additional charges for administrative fees, change of industry type, etc.
Time Limits: In some cases, there might be a moratorium period (e.g., 5 years) during which you cannot transfer your plot.
Exemptions: MIDC might provide exemptions or reductions in transfer charges under certain circumstances to promote industrial development.
Need help buying, selling, leasing, or understanding MIDC documentation? Contact us for expert guidance throughout your industrial property journey.”
Regards,
9819998900 – Koyana
9819992310 – Sushant
One-Stop Industrial Property Solution
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