Assocham moots uniform stamp duty

The Associated Chambers of Commerce and Industry of India (Assocham) has suggested a uniform stamp duty rate of, say, 4 per cent, in a presentation to Madhya Pradesh Chief Minister Shivraj Singh Chauhan.

Though this suggestion is for the country in general, it is particularly relevant for MP, which has been urged by bankers to rationalise stamp duty, particularly in rural areas, so that credit offtake can pick up in the rural real estate sector.

The stamp duty is 5-12 per cent and it discourages registrations of properties. "The only alternative with the states is to reduce it uniformly to ensure a smooth transfer of immovable properties," the chamber said.

In Madhya Pradesh, transfers of property attract high rates. If a partner in a property deal dies, the other partner needs to enter into a fresh property registration process. Similarly, stamp duty exemption is available on land cost only, which is hardly Re 1 per square feet.