Thursday, 27 October 2011
Tamilnadu government hikes power of registration fees from Rs. 50 to Rs.10,000.
Tamilnadu government hikes power of attorney fees from Rs. 50 to Rs.10,000.
The Tamilnadu government has effected manifold increase in the registration fees in respect of agreements for the deposit of title deeds and lease deeds, besides the fee for registration of instrument of power of attorney.
In the case of title deeds, the ceiling on stamp duty has been revised from Rs. 5,000 to Rs. 25,000 and the cap on registration fee from Rs.1,000 to Rs. 5,000.
However, there is no change in the quantum of the duty and the fee which remain at 0.5 per cent and one per cent respectively.
According to Commercial Taxes and Registration Department, case of lease deeds, the maximum registration fee had been fixed at Rs. 20,000 instead of Rs. 5,000.
The existing registration fee of Rs. 50 prescribed for instruments of power of attorney to sell immovable properties had been hiked to Rs. 1,000 if the power was given to family members and Rs. 10,000 if the power was given to others, that is real agents.
In the case of title deeds, the ceiling on stamp duty has been revised from Rs. 5,000 to Rs. 25,000 and the cap on registration fee from Rs.1,000 to Rs. 5,000.
However, there is no change in the quantum of the duty and the fee which remain at 0.5 per cent and one per cent respectively.
An order issued by the Commercial Taxes and Registration Department on Monday stated that in the case of lease deeds, the maximum registration fee had been fixed at Rs. 20,000 instead of Rs. 5,000.
The existing registration fee of Rs. 50 prescribed for instruments of power of attorney to sell immovable properties had been hiked to Rs. 1,000 if the power was given to family members and Rs. 10,000 if the power was given to others.
The hike was expected to net Rs. 300 crore more annually.
As for the revision in sales tax rates, the government expected an annual additional revenue of Rs. 3,900 crore, of which the increase in the rate of Value Added Tax from four per cent to five per cent would fetch around Rs. 1,300 crore followed by Rs. 1,100 crore from the increase in the VAT rate on commodities from 12.5 per cent to 14.5 per cent. An amount of Rs. 550 crore each was likely to be generated by the move to bring textile and textile products under the VAT net of five per cent and the reduction of exemption of turn over limit from Rs. 50 crore to Rs. 5 crore for edible oil dealers. The levy of 14.5 per cent on LCD panels/LED panels and other categories equipment would provide Rs. 130 crore.
"The government's move to hike fees, especially those for power of attorney, was to ensure that real estate brokers did not change power of attorney several times for a single piece of land and also to prevent land grabbing" said registration department sources.
In Delhi, power of attorney for outsiders should be discouraged and banned.
Mr. Dharmendra Pratap Yadav, Inspector General of Registration Said, ''In 2010-2011, more than 3 lakh power of attorney transactions had been carried out. This fetched us only Rs 1.75 crore. The hike in fees would generate more than hundred-fold revenue. However, there would be no increase in guideline value.""
According Mr. Dharmendra Pratap Yadav, In 2009-2010, the total number of documents registered was 27,31,026, from which the government earned more than 3,000 crore. In 2010-2011, more than 30 lakh documents were registered, from which the government earned more than 5,000 crore"With this, the government hopes to generate additional revenue of Rs 500 crore every year.
The Tamilnadu government has effected manifold increase in the registration fees in respect of agreements for the deposit of title deeds and lease deeds, besides the fee for registration of instrument of power of attorney.
In the case of title deeds, the ceiling on stamp duty has been revised from Rs. 5,000 to Rs. 25,000 and the cap on registration fee from Rs.1,000 to Rs. 5,000.
However, there is no change in the quantum of the duty and the fee which remain at 0.5 per cent and one per cent respectively.
The existing registration fee of Rs. 50 prescribed for instruments of power of attorney to sell immovable properties had been hiked to Rs. 1,000 if the power was given to family members and Rs. 10,000 if the power was given to others, that is real agents.
In the case of title deeds, the ceiling on stamp duty has been revised from Rs. 5,000 to Rs. 25,000 and the cap on registration fee from Rs.1,000 to Rs. 5,000.
However, there is no change in the quantum of the duty and the fee which remain at 0.5 per cent and one per cent respectively.
An order issued by the Commercial Taxes and Registration Department on Monday stated that in the case of lease deeds, the maximum registration fee had been fixed at Rs. 20,000 instead of Rs. 5,000.
The existing registration fee of Rs. 50 prescribed for instruments of power of attorney to sell immovable properties had been hiked to Rs. 1,000 if the power was given to family members and Rs. 10,000 if the power was given to others.
The hike was expected to net Rs. 300 crore more annually.
As for the revision in sales tax rates, the government expected an annual additional revenue of Rs. 3,900 crore, of which the increase in the rate of Value Added Tax from four per cent to five per cent would fetch around Rs. 1,300 crore followed by Rs. 1,100 crore from the increase in the VAT rate on commodities from 12.5 per cent to 14.5 per cent. An amount of Rs. 550 crore each was likely to be generated by the move to bring textile and textile products under the VAT net of five per cent and the reduction of exemption of turn over limit from Rs. 50 crore to Rs. 5 crore for edible oil dealers. The levy of 14.5 per cent on LCD panels/LED panels and other categories equipment would provide Rs. 130 crore.
"The government's move to hike fees, especially those for power of attorney, was to ensure that real estate brokers did not change power of attorney several times for a single piece of land and also to prevent land grabbing" said registration department sources.
In Delhi, power of attorney for outsiders should be discouraged and banned.
Mr. Dharmendra Pratap Yadav, Inspector General of Registration Said, ''In 2010-2011, more than 3 lakh power of attorney transactions had been carried out. This fetched us only Rs 1.75 crore. The hike in fees would generate more than hundred-fold revenue. However, there would be no increase in guideline value.""
According Mr. Dharmendra Pratap Yadav, In 2009-2010, the total number of documents registered was 27,31,026, from which the government earned more than 3,000 crore. In 2010-2011, more than 30 lakh documents were registered, from which the government earned more than 5,000 crore"With this, the government hopes to generate additional revenue of Rs 500 crore every year.
