HYDERABAD: Not just new home buyers, the latest revision is also set to hit many customers who’ve already paid their stamp duty. Reason: The order is binding on even those who have cleared their registration charges but haven't got a slot to complete the process. Now, they have to shell out an additional 1.5% before moving ahead.
“This might lead to heartburn among several customers. We wish the government would at least allow registrations at old rate for those who have already paid the challan (as the government has already received the money from them),” said R Suresh Kumar, senior vice-president (business operations) of Prestige Group (Hyderabad). He added that the entire burden of the revision will fall on the end-user, not the developer.
For instance, if someone buying a home at Rs 1 crore worth had to pay stamp duty of Rs 6 lakh (6% of total property value) until now, he/she will now have to pay Rs 7.5 lakh (or 7.5%).
But P Ramakrishna Rao, president of Credai-Hyderabad argues that builders too will feel the pinch. And that's because of an upward revision in construction value — from Rs 760 per sft to Rs 1,000 per sft — implemented by the government. “As a result, developers will have to pay 25% more while registering development agreements. Further, this rise in construction value will also increase the labour cess -- 1% of the total cost of construction,” he said.
Though the land rates, even post revision, might not impact home buyers drastically — most land transactions in Hyderabad happen at a much higher price than what's set by the government — it will increase the "nala tax commensurately”, the Credai official added.
“On the face of it, the revision, especially in stamp duty, does seem very steep. But we must understand that it is being implemented after a long gap. So, at one level, it is also reasonable,” said Ashwin Rao of Manbhum Constructions.
The order is binding on even those who have cleared their registration charges but haven't got a slot to complete the process. They have to shell out an additional 1.5% before moving ahead
