Call for uniform stamp duty rates

NEW DELHI, FEB. 26. The PHD Chamber of Commerce and Industry (PHDCCI) has said that there is a need for rationalisation of stamp duty rates in order to encourage transparent and honest transactions and has called for uniform stamp duty rates across the country.

It has suggested that the stamp duty rates should not exceed 5 per cent under any circumstances.

In a representation to the State Governments, the chamber pointed out that the stamp duty rate among various States varies from 8 per cent in Delhi to as high as 13 per cent in Uttaranchal which is phenomenal and leads to property owners not declaring the true value of their property.

The stamp duty rate in Haryana is 8 per cent, Punjab 6 per cent, Himachal Pradesh 12 per cent plus 2 per cent registration fees, Uttar Pradesh 10 per cent and Rajasthan 11 per cent.

In view of the stamp duty scam detected in Maharashtra and subsequently in other States, the registration system also needs simplification. PHDCCI has suggested that transfer documents may be executed on an ordinary paper or water marked paper.

The stipulated amount of stamp duty can be deposited through an authorised bank in the Government Treasury. Copy of the challan could then be attached to the documents of registration.

Currently there is an incidence of double stamp duty. First, stamp duty is imposed on the land procured by the developer.

Second, there is stamp duty on purchase of the flat. This leads to a major increase in the final cost of the flat.

Care should be taken to formulate a mechanism for lowering the incidence of taxation, PHDCCI said.