The Confederation of Real Estate Developers Associations of India (CREDAI) have raised the issue pertaining to stamp duty on registrable documents, guidance value and excessive statutory charges with Chief Minister Basvaraj Bommai on Thursday.
The officials said the real estate industry has been battered with various issues, including GST, tougher credit availability, rising input costs, slow offtake in commercial real estate absorption. On top of these issues, several state specific issues are turning the situation more critical for the real estate industry, they said. CREDAI members suggested a review of the methodology for computing the stamp duty on Joint Development agreements (JDA) and consider revising the levy of stamp duty on the JDA from market value of the property to construction cost of the project.
They also wanted that the time period for reduction of 10% in the Guidance Value of the property be risen to a further period of one year, from April 01, 2022 to March 31, 2023. “The Guidance Value should be revisited and incorporate the fall in value on account of the pandemic. For this, cities can be classified into various zones/ clusters for the purpose of fixation of Guidance Value,” said CREDAI members.
It was also wanted a reduction of stamp duty on sale deeds. “The Government of Karnataka in the interest of the potential purchasers and developers amidst the pandemic to consider extending the benefit of reduced stamp duty of 3% for registration of all residential property for a period of six months. Such benefits may be extended to stamp duty payable on Sale Deeds registered during such period (i.e., within a period of stipulated 6 months), and to agreement to sale entered into between parties during such period in accordance with the RERA-K submission timelines,” they said.