State to introduce stamp duty amnesty scheme for developers too

After an overwhelming response received for its stamp duty amnesty scheme for flat buyers, the state government is now planning to introduce a similar scheme for developers.

State earned Rs 70 cr from an amnesty scheme for flat owners, announced in June

After an overwhelming response received for its stamp duty amnesty scheme for flat buyers, the state government is now planning to introduce a similar scheme for developers.

All developers, who have not paid stamp duty on Transfer of Development Right TDR certificates, development agreements and conveyance, will be allowed to pay the sum sans penalty during the duration of amnesty scheme.

8220;We have received proposals from various segments asking us to introduce an amnesty scheme for developers who have not paid stamp duty. We are considering the demands as well as looking at all the statutory provisions necessary,8221; said Ramrao Shingare, Inspector General of Registration for Maharashtra, and added that a decision will be taken next week.

Usually, the penalty is 2 per cent of the total duty amount per month from the date of execution of the agreement to a maximum limit of 200 per cent. During the amnesty scheme, developers will be spared the penalty amount and will have to pay the normal 3 per cent of the TDR certificate8217;s value and 5 per cent of the market value of the property in case of conveyance and development agreements.

From the time the amnesty scheme for flat owners was announced in June, it has attracted over 70,000 flat owners across the state and led to a revenue collection of over Rs 70 crore.

8220;All these cases are predominantly from Mumbai, Thane and Pune,8221; said Shingare. The tremendous response, despite a lack of clarity in the scheme from time to time, has led the state government to extend the scheme for flat owners till the end of November.

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Stamp duty experts have termed the state government8217;s move as an attempt to garner in as much as revenue for the state exchequer as possible before the election. 8220;Also, first for flat buyers and now for builders, this comes as a pre-election sop,8221; said Vinod Sampat, advocate and president of the Cooperative Societies8217; Residents and Users Association.

Sampat added that many developers evade stamp duty under section 3 of the Bombay Stamp Act, even as the government can attach and auction the property in case the developer fails to pay stamp duty on TDR, conveyance or development agreement.