Stamp Duty Removal From Affordable Housing Development

Realty to witness investment boost, led by the demand of affordable housing estates across the major cities of India. The later up gradation of this affordable housing segment discloses that affordable houses will soon be exempt from stamp duty, which means people can actually buy affordable flats in Kolkata and other prime locations of the country within curbed budget. According to the sources stamp duty will be narrowed by 4%-8% (variable) of the transaction value.
Union minister for urban development and housing M Venkaiah Naidu said that ministry of HUPA has written to state governments to let off affordable houses from stamp duty. Stamp duty is a state subject, with the state government fixing the rate and collecting the duty.
The minister stated about his infirmity vis-a-vis the barring of stamp duty from GST, saying, “States have, in their wisdom, not adhered to the inclusion of stamp duty under GST.” “Thus, we need to move forward from this debate,” he said.

Addressing Credai and the Confederation of Real Estate Developers’ Associations of India, the union minister said that the Centre would make sure that there was no net tax escalation in the housing sector, particularly the affordable housing segment, following the implementation of the Goods and Services tax (GST). He highlighted that the enclosure of the real estate sector in the GST structure would facilitate the production as well as the industry.

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The Housing and Urban Poverty Alleviation Minister also asked the builders to deliver their under construction buildings within the given time. From his declaration, fact that has come visible is GST implementation won’t brace realty price hike. Especially affordable housing sector will be safe-sheltered from any price augmentation. Addressing real estate apex bodies on a two-day conclave in the capital Naidu said on a Credai release, “The new Benami Transactions (Prohibition) Amendment Act will further complement this vision. Another concern of the industry has been faster approvals. We are addressing this across ministries and proposed some recommendations for the PM’s approval.”

Low budget housing sector is not liable to give any service tax also, which is more or less 5.35% of a property’s selling price. The central minister said his ministry had already joined up with the finance ministry in the call for carrying on the exemption under GST. He again added that the union government had also suggested to the finance ministry that the sector be taxed at a rate which is revenue nonaligned, and not an upper one.
“We need to introspect the skyrocketing inflation of land prices, with rates in Hyderabad and Vijayawada at par with New York and Paris, making it impossible to make houses in an affordable manner. All real estate transactions need to be made digital payments, a healthy practice that will make it possible for banks to disburse housing loans,” Naidu said. “We are also working on a policy of incentives and disincentives. States working in compliance with reform measures like accountability, transparency, swift approval will be given additional money under allocation.”

-By LNN (Liyans News Network)

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