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Thursday, Dec 18, 2008
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Registration cost slashed

Special Correspondent

Stamp duty cut for flats with plinth area up to 1,200 sq ft

HYDERABAD: Registration of apartments with a plinth area up to 1,200 sq ft will be cheaper in the State for two years from January 1, 2009.

With a view to reviving the construction activity that is going through a slump, the Cabinet at a meeting here on Wednesday, decided to scrap the entire five per cent stamp duty levied at the time of registration.

This concession will be extended to all flats, measuring 1200 sq ft and less, till December 31, 2010.

This, in effect, means that those buying flats will have to pay only 2.5 per cent on the value of the apartment towards registration charges as against 7.5 per cent now. The registration charges will include transfer duty (two per cent) and registration cost (0.5 per cent).

Plinth area

Briefing reporters later, Information Minister A. Ramanarayan Reddy said the Cabinet also resolved to exempt builders of housing units with a plinth area up to 1,200 sq ft from payment of “building approval fee” and “building permission fee” up to June 2009. In yet another incentive, it decided to allow builders to pay “impact of fee” in case of structures proposed above 15 metres height, in six instalments during the construction period.

The builders, however, would have to begin the construction within six months of getting the layout approval and complete the construction in two years to get these fee exemptions and instalment-payment benefit.

He said the Cabinet took these measures to incentivise and kick-start construction activity which was on a slowdown following global recession, resulting in a slump in private investment. There was shrinkage in demand for cement, steel and other items.

B. Aravinda Reddy, Inspector-General, Registration & Stamps, said property registrations in the State dropped by 25 per cent.

Focus on housing

The Minister said the incentives would ensure housing to middle class and, at the same time, avoid layoffs in cement, steel and other related industries.

On its part, the Union Government was planning to increase its spending on infrastructure projects with focus on housing, he added.

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