Noida plans to waive surcharges on stamp duty on 3 additional facilities
With an aim to increase its revenue, Noida stamps and registration department is planning to waive surcharges on stamp duty on three additional facilities — community centre/club, swimming pool and gym. Earlier, each of the facilities was charged 2% on the principal investment as stamp duty.
Last year, the district administration had waived surcharges levied on power backup and lift services.
Once approved, the revised circle rate will come into effect on August 1.
Circle rates are the minimum rates which forms the basis of stamp duty and registration charges and below which a property cannot be registered.
SK Tripathi, assistant commissioner stamps & assistant inspector general registration, Gautam Budh Nagar, said the circle rate revision is an annual exercise.
“We have conducted a survey of properties in the district. We have planned to waive surcharges on three additional facilities — community centre/club, swimming pool and gym — as they are now integral to a group housing society,” he said. The waiver of additional facilities will be implemented once the district administration approves it, Tripathi said.
He said that the registration department has called a meeting of different stakeholders to discuss the issue on Tuesday.
“We have invited Credai, Assocham (both builder lobbying groups) and developers to seek their feedback on the circle rate revision. We will also seek Noida residents’ feedback,” he said.
However, buyers have to pay 5% stamp duty on parking area (Rs 3 lakh for covered parking and Rs1.5 lakh for open parking). The department may revise the circle rates in different segments in accordance with the current market price.
Owing to a slump in the realty market, the stamp and registration department has not achieved its revenue targets for the last three consecutive years.
The department’s data shows in 2016-17, it collected Rs 1,761 crore against a target of Rs 2,222 crore while in 2017-18, the revenue collection stood at Rs1,685 crore against a target of Rs 2,252 crore.
Last financial year (2018-19), the department collected Rs 1,879.03 crore against a target of Rs 2,532.84 crore, achieving 74.19% of the revenue target. This financial year (2019-20), the department has collected Rs 641 crore till June 30, against a target of Rs 2,597 crore.
PPS Nagar, president, Noida Bar Association, said the waiver for additional facilities will be a relief to investors.
“Most housing societies in Noida have a swimming pool, gym and club/community centre.
If homebuyers do not have to pay a surcharge on these facilities, it will be a big relief to them,” he said.
To generate revenue, in December 2018, the district administration introduced “agreement to sublease” and asked homebuyers to pay 5% stamp duty for moving into flats which lacked a completion certificate.
Source : Hindustan Times