In a relief for homebuyers, the registration department in Tamil Nadu has clarified that ready to occupy new apartments and buildings need not have to pay stamp duty and registration fee.
The move comes in the wake of some sub-registrar offices demanding to register the apartments attracting stamp duty and registration fee.
However, it is applicable only on the first sale of the property.
Inspector general of registration on Monday issued an order that confines undivided share (UDS) of a property under the bracket of stamp duty and registration fee.
“If a document is presented for registration for first sale of undivided share of land, the registering officers are instructed not to demand or insist on inclusion of building in the subject matter of sale document for the sole reason that completion certificate has been issued by the competent authority to the project,” a communication from the inspector general of registration to sub-registrars said.
This would help homebuyers not pay the combined 11% stamp duty and registration fee for new apartments.
Builders Association of India state treasurer S Ramaprabhu said that the order paves way for subjecting only UDS for stamp duty and registration fee.
“For instance, a new flat costing Rs 60 lakh, of which UDS is Rs 20 lakh and rest Rs 40 lakh is the price of the apartment. Homebuyers need not shell out stamp duty and registration fee on the building. It is a welcome move for those buying properties in completed projects because it does not attract GST,” he added.