Basic Sale Price or Basic Selling Price (BSP): Concept, How it is calculated

Housing projects that come with amenities have two types of components – the basic sale price or basic selling price (BSP) and an all-inclusive cost. While the all-inclusive cost includes several other charges, such as preferential location charges (PLC), internal and external development charges (IDC and EDC), club membership charges and so on, the BSP may or may not include floor rise and one-time maintenance charges.

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What is basic sale price?

The BSP is the base cost per sq ft of the property, for which it is listed for sale by the seller. Usually, it does not include additional charges for amenities, floor rise, preferential location, parking and other maintenance dues.

Example of BSP

Suppose you saw an advertisement, where a 2BHK is available at Rs 3,000 per sq ft. Therefore, a 1,000 sq ft apartment would cost you Rs 30 lakhs. However, this is not the actual cost of the apartment, since there are various unadvertised charges that you need to pay over and above the basic sale price of Rs 30 lakhs. These additional costs can be up to 20% of the BSP.

Breakdown:

Type of cost	Calculation	Cost
BSP	Rs 3,000 x 1,000 sq ft	Rs 30 lakhs
PLC	4% of BSP	Rs 1.2 lakhs
External electrification charges	1,000 x Rs 50 per sq ft	Rs 50,000
EDC and IDC	1,000 x Rs 100 per sq ft	Rs 1 lakh
Car parking space	Fixed	Rs 2 lakhs
Power back-up	Fixed	Rs 30,000
Electricity connection, water connection, drainage, sewerage	Fixed	Rs 6,000
Stamp duty and registration charges	6% of BSP	Rs 1.8 lakhs
Total cost		Rs 36.86 lakhs

While the BSP of the property is Rs 30 lakhs, you would need to pay Rs 36.86 lakhs for the property, depending upon the amenities and other charges levied by the developer. The additional charges are almost 20% of the BSP.