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Posted by Srini Uppala | December 7, 2007 | 382 views
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Loading ...Registration of sale, construction and development agreements with general power of attorney clause has become an expensive affair with the state government removing the ceiling limit on stamp duty. Earlier, builders only had to pay a maximum of Rs 50,000 as stamp duty for registration. The amount used to be even lower if one per cent of the estimated cost of construction or land was below Rs 50,000.
With the latest decision, the additional burden on builders will be at least 7 to 10 times more for residential complexes. In case of multiplexes the amount may even touch Rs 1 crore. The revenue department (registration) recently issued orders removing the ceiling limit. It also decided to levy one per cent stamp duty on the combined value of the land and construction. Earlier, it was levied either on the land or on the construction. Further, the department also decided not to adjust the stamp duty already paid against the one payable on sale deeds at a later date.
A revenue official said all these changes were made to shore up the revenue of the stamps and registration department. “It is struggling to meet its revenue targets because of a slowdown in real estate,” he said. “We expect to generate more than Rs 200 crore.” As per new rules, for a 1,000 square yard plot in Gandhinagar, the builder shall have to pay stamp duty of Rs 2.7 lakh on land value of Rs 22,000 per sq yd and built up area of 8,000 sq ft.
The amount will be more than Rs 3.5 lakh for a similar project in posh Jubilee Hills of multiplexes and group housing will be the worst hit because the stamp duty amount will be more than Rs 50 lakh. The department cunningly withheld registration of documents for about a week and asked the builders to pay the increased amount after December 3. “They postponed registration and on Thursday asked me to pay Rs 50 lakh instead of Rs 50,000,” said the vice-president of a top construction company.
The developer is commonly empowered with the GPA to enable him to sell the property. Builders are unhappy with the government had increased the burden on every aspect involved in plan approval and registration. “Besides increasing the land value twice a year, the government recently put an additional burden of Rs 20 per sq ft by increasing development charges and Rs 200 per sq ft through impact fee,” complained Mr Yoganand, a noted builder.
SOURCES:
Deccan Chronicle
Topics: Dream Home, Govt Failures, Real Estate |
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