Your dream house will now be more dearer. With the Andhra Pradesh government imposing a sharp hike in stamp duty on various property deeds, customers will now have to shell out an additional 15-20 per cent to buy a house in the city. This revision will help the government net a whopping Rs 7,200 crore as annual revenue from registration fee.
With effect from September 20, the stamp duty on development-cum-general power of attorney (DGPA), agreement of sale-cum-general power of attorney (AGPA) and agreement of sale (AOS) deeds will be 5 per cent as against the existing 1 per cent. The stamp duty on gift, release and settlement deeds too will go up from 1 per cent to 3 per cent. In the case of DGPA, the 5 per cent stamp duty would be the highest in the country.
The order was issued by the stamps and registration department of AP on Wednesday wherein it stated that “the government after careful examination of the matter had decided to rescind the earlier GOs (that had reduced the duty on these deeds)”.
Reacting strongly to this move, city realtors said that this revised fee would prove to be fatal, especially for medium and small-scale builders. “As it is the markets are down and sales are far and few in these section of people. Now, the inflated duties will hit them further as the demand will drop drastically,” said R Chalapathi Rao, vice-president, Andhra Pradesh Real Estate Developers‘ Association adding, “It will be a struggle for the developers to raise funds for paying stamp duty.”
Further, condemning the rise in duty on gift deeds realtors said that such deeds comprised less than one per cent of the total annual registrations. “These deeds do not even generate high revenue. Then why unnecessarily increase the duty on them?” questioned one realtor expressing concern over this revised fee structure. “This will only make way for more unlawful dealings. People will now shy away from registering their properties to evade these heavy duties,” he said.
Meanwhile, when contacted, officials of the department said that the GO had been misread by realtors. While they admitted that stamp duty on most of these deeds had been increased, they claimed that the registration fee on DGPA was not altered. “There has been some miscommunication,” said M Sahoo, principal secretary, revenue (stamps & registrations) adding, “The revision of fee is only pertaining to AGPA, development deed and others deeds. We will soon issue a clarification to set the record right.”
Justifying the GO, Sahoo said that the revision was made to eliminate fraudulent dealings wherein properties were sold by `third parties’ with no title to the land. “Such dubious deals had led to an increased number of litigations and we need to check that,” he said.
Source:Times of India