CREDAI Western UP, an association of real estate developers, has urged the state government to reduce stamp duty and registration fees to make property purchase affordable post Covid-19 in Uttar Pradesh, it said in a media release.
The association on Tuesday met Ravindra Jaiswal, Minister of State (Independent Charge)- Stamp Duty, Court Fee and Registration-Uttar Pradesh and Dr. Mahesh Sharma – Member of Lok Sabha – Gautam Buddha Nagar and handed over a written memorandum.
Prashant Tiwari, president, CREDAI Western said, “If the registration fee is reduced to the minimum at the time of agreement to sub-lease, the property registry will increase and state revenue will go up. We have urged to reduce stamp duty for the next 6 to 12 months to speed up the purchase and sale of property after the coronavirus pandemic.”
The members of CREDAI Western UP apprised the Minister that the state government revised registration fee of property in the state 1% of property cost from February 2019 which was earlier only 20,000 fixed.
“It is essential to register the agreement but paying 1% fee is a big issue for any buyer as the average price of the property has gone up to 40 – 50 lakhs. In such a situation, we are requesting state govt to reduce stamp duty and charge a minimum fee for registration of agreement to sub-lease.” Subodh Goya, secretary, Credai Western UP.
After the implementation of UP-RERA, registration of the builder-buyer agreement/agreement to sub-lease has also been made mandatory. Apart from this, the home buyers are paying stamp duty of 5%.
In this way, the home buyer has to pay a 1% registration fee of the same property at the time of agreement to sub-lease and final sale deed both. So the home buyer has to bear the burden of 7% by adding the registration fee twice and stamp duty once for the same house, which prevents the home buyer from registering the agreement, said the association.
