Realtors, buyers want lower stamp duty
NOIDA: Realty estate developers and homebuyers on Tuesday demanded that the Uttar Pradesh government reduce the stamp fee levied on execution of registry of apartments.
They met UP minister for state (independent charge) for stamp fee, registration and court fee Ravinder Jaiswal in Noida. They argued that the measure would help reduce the economic burden on the housing sector badly hit by the Covid-19 crisis.
To illustrate the degree to which the pandemic has hit business, the Gautam Budh Nagar stamp and registration department had a revenue target of ₹3,148 crore in the financial year 2020-21. However, the department so far could only collect around ₹550 crore. This was much lower than the ₹1,700 crore revenue it earned in 2019-’20 against a target of ₹2,597 crore.
“We requested him to reduce the stamp fee from 5% to 2%, not to levy the 1% registration fee and abolish the agreement fee of 1%,” said Prashant Tiwari, president of Confederation of Real Estate Developers Association of India (Credai)-west UP, who met the minister.
“We have been demanding the reduction for a long time,” said Abhishek Kumar, president of Noida Extension flat owners’ welfare association that also met the minister.
“Maharashtra and Madhya Pradesh governments already reduced the stamp fee in view of the crisis. Reducing it will not only help the sector increase registrations, but also the government through increased revenue,” said Subodh Goyal, secretary, Credai-west UP.
Jaiswal said the government will consider the demands.
In Gautam Budh Nagar district, the stamp and registration department levies 5% of total property cost as stamp fee at the time of execution of a lease deed or registry required to transfer the property title. The UP government had in February, 2019 started charging 1% of total property cost as registration fee removing old rule under which only ₹20,000 registration fee was in place. It also made it mandatory that a buyer and developer will execute agreement after paying 1% fee for execution for this legal process. It means the state charges 7% of total property cost as fee for registration of a property in GB Nagar.