Hyderabad, June 10: The stamp duty on registration of lands will soon be reduced to five per cent in the state following the Central government’s directions to the state government to receive the Central funds under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). However, the reduction on stamp duty is likely to be implemented in only municipal corporations and municipalities.
Chief Minister K Rosaiah who discussed the proposal with Stamps and Registration Minister G Venkata Reddy and the officials concerned, asked them to prepare a comprehensive report on revenue sharing and the impact of reduction on the state exchequer. A final decision will be taken only after the officials submit the report to the state Cabinet.
Currently, the state government is collecting 9.5 per cent registration charges towards registration of lands which include seven per cent of stamp duty, two per cent of transfer charges and another 0.5 per cent towards other charges. The reduction of stamp duty to five per cent will result in two per cent reduction on the entire registration fee bringing it down to 7.5 per cent, the officials said.
The Central government has made it mandatory for the states to bring down the stamp and registration duty upto five percent for receiving the Central assistance under JNNURM. The state was getting about Rs 600 crore per annum under JNNURM, while the revenue generated from stamps and registration during the last financial year is about Rs 2,400 crore as against the target of Rs 3500 crore.
—Agencies