UP to waive stamp duty on development projects

The Uttar Pradesh government has notified stamp duty waiver to large and medium development projects falling under government-promoted industrial enclaves.

The projects, where land has been sourced from private means, may also qualify for the exemption on case-to-case basis.

Primarily, the stamp duty waiver would be applicable to projects under various state development authorities, including UP Expressways Industrial Development Authority (UPEIDA), Yamuna Expressway Industrial Development Authority (YEIDA) and UP State Industrial Development Corporation (UPSIDC).

While a notification in this regard had already been issued by the industries department, the tax and registration department recently notified the same as the subject matter comes under its jurisdiction.

The policy aims at providing financial incentives to industrial groups and developers in the face of the meltdown.

Development projects entailing 500 hectares and above will be treated as large projects, while projects spanning between 100 and 500 hectares will be taken as medium sized. Both types of projects qualify for exemption.

Uttar Pradesh has put service, tourism and food processing sectors on its priority list for development.

However, for a project to qualify for exemption, the principal secretary/secretary of the concerned department or his nominee, not below the rank of special secretary will certify that the concerned project came under the economic recession policy of May 2009.

The developer will have to produce this certificate during registration. Any stamp duty already paid will not be refunded and the exemption would follow a bank guarantee to recoup revenue loss to the exchequer if the project was abandoned.

Meanwhile, Industrial and Infrastructure Development Commissioner (IIDC) Anup Mishra last week issued a notification to include projects entailing privately-sourced land to enlarge the spectre of the policy.

If the land has been secured from private sources, the district industries centre would be the nodal agency. The application of stamp duty exemption would be recommended by the general manager of the centre, if other norms were followed.