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Review stamp duty rates, CII tells states

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Komal Amit Gera Chandigarh
Last Updated : Feb 15 2013 | 8:54 AM IST
 
The study also compares the prevailing stamp duty rates in the northern region with rates overseas.

 
According to the study, Haryana, Himachal Pradesh, Rajasthan Uttaranchal and Uttar Pradesh charged double-digit stamp duty rates, with Haryana topping the list. Stamp duty rates in India varied from instrument to instrument and state-to-state, ranging anywhere between 6 per cent and 15 per cent.

 
Some states even have double stamp incidence, first on land and then on its development. With rates as high as 15.5 per cent in Haryana, India has one of the highest levels of duty amongst Asian countries.

 
These high rates deter prospective purchasers from legalising their transactions. The non-disclosure of transaction values also causes loss to states.

 
For optimal reforms, the CII has recommended adoption of a uniform approach by northern states in bringing down stamp duty rates to a uniform level of 4 per cent and abolishing the provision of a registration fee.

 
Reducing the number of specific duty rates, with special provisions for apartment transfers is another suggestion made by the CII.

 
The CII has also recommended creation of a central valuation cell in each state to lay down norms as well as value properties in different areas.

 
The study emphasised the need for an across-the-board initiative to rationalise these rates, by relevant authorities in all the northern states. Such a step would lead to better compliance and may eventually recoup some of the lost revenue through increased revenue flows from related taxes such as construction tax and property tax.

 
 

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First Published: Dec 10 2003 | 12:00 AM IST

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