Reserve price and circle rate
The circle rate is the state's minimum valuation for stamp duty; the reserve price is the authority's floor for the auction. They are different numbers set by different bodies for different purposes. Stamp duty is charged on the higher of the allotted value and the circle rate, so a plot bought near its reserve can still attract duty computed on a higher circle rate.
Worth knowing
- Stamp duty and registration are almost always the allottee's cost, on top of the bid.
- Authorities rarely publish the applicable circle rate; it has to be checked with the sub-registrar.
Questions people ask
What is Reserve price and circle rate in a government plot auction?
The circle rate is the state's minimum valuation for stamp duty; the reserve price is the authority's floor for the auction. They are different numbers set by different bodies for different purposes. Stamp duty is charged on the higher of the allotted value and the circle rate, so a plot bought near its reserve can still attract duty computed on a higher circle rate.
What should a bidder watch for with reserve price and circle rate?
Stamp duty and registration are almost always the allottee's cost, on top of the bid.
Anything else about reserve price and circle rate?
Authorities rarely publish the applicable circle rate; it has to be checked with the sub-registrar.