Realtors seek change in stamp duty clauses
The act was not affecting the builders till recently when neither the government nor the housing loan providers insisted on registration of such agreements
Sep 10, 2013
Source : The Times of India

 

BHUBANESWAR: Real estate developers have sought the abolition of stamp duty, while entering into agreements with land owners to execute various projects.

Though such a provision exists in the state since 2003, it was practically not affecting builders, as most of them never registered with such agreements. However, after banks recently started insisting on registration of such agreements before sanctioning loans, builders have now become jittery.

While the Confederation of Real Estate Developers Association of India (Credai) state unit has submitted a memorandum to revenue minister S N Patro recently, the Real Estate Developers Association (Reda) of Odisha is planning to make a similar representation soon.

"The government is taking stamp duty twice in case of real estate projects. First, when the builder signs an agreement with the land owner to construct a project. Second, when individual buyers purchase houses from the developer. This duplication should be avoided," said Reda president Pradipta Biswasroy.

According to the Indian Stamp (Orissa Amendment) Act, 2001, as amended in 2003, an agreement to sell any immovable property or power of attorney shall be deemed to be sold and stamp duty will be chargeable just like in conveyance deed. Odisha charges stamp duty at the rate of seven per cent.

The act was not affecting the builders till recently when neither the government nor the housing loan providers insisted on registration of such agreements. However, after the Comptroller and Auditor General (CAG) pointed out in 2011 that the government was losing out revenue on non-registration of such agreements, government authorities tightened enforcement. Some banks, including biggest lender State Bank of India (SBI), have made registered agreements pre-condition for giving housing loans, forcing builders to register such agreements.

"We are not against registration, which is required to avoid future differences between the builder and land owner. However, full stamp duty like in case of sale is escalating project costs manifold. The government should change the stamp duty act to charge a nominal amount for such deals to boost the housing sector," said Credai joint secretary D S Tripathy.

A senior officer said the government is examining the matter vis-a-vis provisions in other states. In neighbouring states such as Chhattisgarh and West Bengal, payment of stamp duty is not required in case of such agreements and power of attorney and the government charges a fixed amount.

Latest Realty News

Unsafe houses dot Cuttack
Sep 10, 2013
CUTTACK: The thousand-year-old city has many unsafe structures, which can crumble at any point of time, but the Cuttack Municipal Corporation (CMC) is yet to wake up to the threat. On Sunday, four persons were killed when an old building collapsed in Puri.
Government to give public land on short lease
Sep 06, 2013
BHUBANESWAR: The State Government has paved the way for unused public land to be given away on temporary lease to private organisations and companies.
BJP demands AG removal for at transaction
Sep 04, 2013
BHUBANESWAR: BJP on Monday demanded that an independent body should be entrusted to probe the multi-crore chit fund scam to unearth the alleged involvement of the BJD Government and sought immediate removal of the Advocate General for his criminal misconduct relating to complicity with one of the chit fund kingpins.
BDA day: CM lays stones for housing projects
Sep 03, 2013
BHUBANESWAR: In the occasion of Bhubaneswar Development Authority (BDA) Divas on Sunday, Chief Minister Naveen Patnaik laid foundation stones for three big-budget housing projects worth Rs 238 crore for the economically weaker sections (EWS) at different locations on the city outskirts.
Biswabhushan Harichandan|Odisha Jami Adhikar Manch
Aug 29, 2013
BHUBANESWAR: At a time when the state is acquiring land for major industrial projects amid widespread protests, there are more than five lakh people in the state who don't have a place of their own to live in.
Builders frown on decision to stop conditional approval
Aug 29, 2013
BHUBANESWAR: Real estate developers on Wednesday sharply reacted to Bhubaneswar Development Authority's (BDA's) decision to do away with "conditional approval" of building plans of high-rises before such projects get clearances from various other agencies such as fire department, Bhubaneswar Municipal Corporation (BMC) and Airports Authority of India (AAI).
Opposition turns Ponzi heat on government
Aug 27, 2013
BHUBANESWAR: The state assembly on Monday witnessed a marathon debate on the chit fund scam, with the opposition alleging that at least four cabinet ministers of the Naveen Patnaik government were involved in it. The oppsition also said two prominent BJD leaders were involved and sought a CBI inquiry to unravel the truth.
Government goes slow on IAY target
Aug 26, 2013
BHUBANESWAR: The State Government has achieved only seven per cent of the target set for Indira Awas Yojana (IAY), the rural housing scheme for the poor, in the first four months of the current financial year.
BDA plans to develop open space
Aug 26, 2013
BHUBANESWAR: The Bhubaneswar Development Authority (BDA) has decided to renovate and beautify an open space of 1.5 acre in Ananta Vihar near Pokhariput. It is part of the steps taken by BDA to minimise the misuse of open space in the city.
Bhubaneswar Development Authority's Rs 185 crore windfall to builder
Aug 26, 2013
BHUBANESWAR: The Bhubaneswar Development Authority (BDA) allegedly extended over Rs 185 crore undue benefits to the developer of a multi-storey residential complex, Utkal Heights, at Pahala through irregular and unlawful approval of its building plan, sources said.

Latest Realty News Of State

Realty Talk's