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Hyderabad News.AP Govt Agrees to Reduce STamp Duty on Property Registration

Hyderabad News. TOI 10.06.2010


(Excl Ventures News.)

The state government has in principle agreed to reduce stamp duty from 7% to 5% after taking into consideration various factors,including the enhancement of land value in commercial areas and tier-II cities across the state.


Stamps minister Gade Venkat Reddy said on Wednesday that officials of the stamps & registration department were readying proposals to reduce the stamp duty keeping in mind the revenue targets set for the department in the budget.


The minister said the registration charges were periodically reduced from 13.5 per cent to 11 per cent and then to 9.5 per cent since August 2005 under pressure from the Centre,which wanted a uniform stamp duty of 5% across the country.





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However,the transfer fee (2%) and registration fee (0.5%) would remain the same.
He said there was a delay in making a formal announcement in this regard as the department had an ambitious target of Rs 3,546 crore,keeping in mind the revenue loss it was likely to suffer in the wake of reduction in stamp duty this year.

Last year,the stamps & registration departments collections were around Rs 2,500 crore against a projection of Rs 3,224 crore,the minister said.


Comment :
Govt seem to be working over time to raise market value of land all over, so that reduction in Registration charge does not imact revenue.  Will this mean total cost for buyers will actually increase even from current levels.? It was   expected that market rate change will be done after seeing the impact of registration cost reduction. But Govt do not seem to be in a mood to wait.

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