Flat owners who have paid stamp duty but not registered later will be liable for stamp duty at today's market rate. Maharashtra finance minister Ajit Pawar in his annual budget for 2013-14 has said if proper stamp duty is paid on a registered agreement to sell, treating it as a deemed conveyance and subsequently a conveyance deed is executed without any modification then such a conveyance be treated as supplementary document under section 4 of the Maharashtra Stamp Act and a duty of Rs 100 be charged. The government has proposed to amend article 25 of the Act.
This proposal is expected to increase burden on the property buyer.
A realty industry player, who did not want to be identified, told Business Standard "If a buyer has purchased flat at Rs 13 lakh in 2001 by paying stamp duty of Rs 60,000 but has failed to register the flat then considering the present value of flat risen to about Rs 1 crore then it will attract stamp duty at 5% which comes to Rs 5 lakh." The finance minister's proposal will further dampen the mood of the realty sector which is struggling to survive.
A revenue department official confirmed that un-registerd flat owners will have to be pay stamp duty at the present market rates.
Pawar's proposal comes at time when the state chief minister Prithviraj Chavan has launched drive for deemed conveyance in favour of society. However, today's proposal may further hamper Chavan's drive.
Moreover, Pawar has proposed rationalization of different stamp duty rates of leave and license agreements, applicable in different areas. The finance minister explained that different rates of duty is charged in different areas and for different amounts in determining the amount of stamp duty payable on instruments of leave and license. "To simplify this, a uniform stamp duty at 0.25% on sum of rent payable for the period of agreement and the amount of non refundable deposit and interest calculated at the rate of 10% per annum on the refundable deposit will be charged throughout the state," the finance minister added.
