CHENNAI: The recent introduction of composite value and changes rolled out by Tamil Nadu government in stamp duty charges has delivered a blow on the real estate market and prospective home buyers, according to builders and the Confederation of Real Estate Developers' Associations of India (
Credai
).
On December 1, state registration department rolled out a new structure under which there will be a single sale deed for the composite value of the building -- including the UDS as well as the construction cost -- and carrying a flat registration fee of 7% of the total value of apartments priced between Rs 50 lakh and Rs 3 crore.
“For those below Rs 50 lakh, the charge has been fixed as 6%,” said G Mohan, president,
Chennai Southern Builders Association
.
Members of the real estate industry point out that this has led to a drop in registration of new flats. S Sridharan, vice-president, Credai National - South Zone, requested government to fix registration charges as 4% for the affordable housing category and 5% for all other categories.
“Homebuyers have been affected by this. A reduction in value and stamp duty charges will benefit the homebuyers," said S Sivagurunathan, president, Credai-Chennai.
P Kruthivas, secretary, Credai, said government had tried to emulate Karnataka registration department’s process. “But we don’t know why it was done in a hurry and why it is being changed often. This has caused confusion,” he explained.
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