The Hindu : Karnataka / Bangalore News : Stamp duty cut on sale deed executed by GPA

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Monday, Jun 22, 2009
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Karnataka

Karnataka - Bangalore

Stamp duty cut on sale deed executed by GPA

Staff Reporter

It has been reduced from 7.5 per cent
to 6 per cent
The step is likely to benefit property buyers in urban areas more than those in rural areas

BANGALORE: The stamp duty on general power of attorney (GPA)-executed sale deed has been reduced by the State Government from 7.5 per cent to 6 per cent.

The stamp duty on GPA-based documents was brought down through an Ordinance promulgated on June 4 along with the stamp duty for the first sale of apartment. With the reduction of stamp duty on GPA-executed sale deed, a stamp duty of 6.72 per cent to 6.78 per cent will be levied on transactions that will also include surcharge, additional duty and infrastructure cess.

Sources in the Revenue Department said that apart from 6 per cent stamp duty, the buyer will have to pay cess of 10 per cent on the stamp duty, and a surcharge and additional duty on the stamp duty will be imposed depending on place of transaction. If the transaction is in corporation limits a surcharge and additional duty of 2 per cent on stamp duty will be levied on such transactions while it is 3 per cent of the stamp duty in gram panchayat limits.

The reduction in stamp duty on GPA-executed sale deed is in line with the reforms sought by the Union Government that has asked the State Governments to bring down stamp duty to five per cent to make it uniform across the country, sources said and added that there was no uniformity among the States at present.

The reduction in stamp duty on GPA-executed sale deed is likely to benefit property buyers in the urban areas more than those in the rural areas. “We normally find transactions of GPA executed sale deed in urban areas such as Bangalore, Mysore, Mangalore and other places and it is far less in rural areas where people do not rely on such transactions,” a senior sub-registrar said.

The sub-registrar said that the GPA-executed sale deed could amount to about 5 per cent of the total sale transaction in urban areas while it was around one per cent in rural areas.

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