Real estate developers in the state have demanded that the stamp duty be reduced to below four per cent as per the recommendations under the national housing policy of the Union government. |
State finance minister Vajubhai Vala had announced a reduction in stamp duty from 11.20 per cent to 8.40 per cent while presenting his modified Budget estimates for the financial year 2004-05 in the Gujarat legislative assembly on May 20. |
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"The stamp duty should have been reduced to around four per cent as per the recommendations in the National Housing Policy. We have been demanding a cut in the stamp duty for the last two years," said Pawan Bakeri, director, Bakeri Engineers and Industries Ltd. |
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"We were expecting that the stamp duty will be reduced to around four per cent in the Budget. We will continue our efforts in this regard," Pawan Bakeri said. |
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A basic eight per cent stamp duty was applicable on various types of instruments relating to transfer of immovable properties. An additional duty at the rate of four per cent was also levied besides the basic rate of eight per cent, taking the total stamp duty to 11.20 per cent. |
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The finance minister reduced the basic rate of stamp duty from eight per cent to six per cent, taking the total rate, inclusive of the additional duty, to 8.40 per cent. |
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"Due to high stamp duty, people do not show the actual value of transaction when they register it. Also, they tend to evade duty. By reducing stamp duty to around three per cent, irregularities and malpractices can be curbed. Transactions can be made legal and the duty cut will give much respite to people who buy property using loans taken from financial institutions," Harshad Patel, president, the Gujarat Institute of Housing and Real Estate Developers, said. |
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Apart from reducing stamp duty to 8.40 per cent, the finance minister had announced a total waiver of registration fee on property documents for women. |
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"Stamp duty should have been reduced to around three per cent as per our representation to the finance minister. The finance minister was convinced by our representation but it was not reflected in the state budget. We will continue our representation till stamp duty is reduced to below four per cent as per the recommendations of the National Housing Board," said Arun Chaturvedi, president, Federation of Real Estate Developers' Association of Gujarat. |
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The government in the state budget had introduced an amnesty scheme for recovery of stamp duty overdues. |
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Under this, 50 per cent of the stamp duty is to be paid for documents registered until April 2000. |
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The remaining 50 per cent stamp duty amount along with interest will be waived. |
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For documents registered after April 2000, interest will be waived on payment of stamp duty. |
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The scheme is expected to fetch Rs 100 crore. |
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Shreyas Pandya, president, Gujarat Chamber of Commerce and Industry, said, "The central government has reduced stamp duty by 50 per cent on recommendations of the Kelkar committee. The state government can also take a similar step. Stamp duty for real estate transactions should be cut to four per cent." |
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"The Centre is giving a number of concessions to boost the housing sector. The state should also do this. Stamp duty should be commensurate with the administrative expense involved in registering a transaction. It should not be a source of income," Pandya said. |
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