Builders have asked the Rajasthan government to eliminate double taxation in real estate transactions.

JAIPUR: During a meeting with Principal Secretary (Finance) Akhil Arora, the state’s real estate developers stated that they pay stamp duty when purchasing land and signing development agreements. Once again, when they sell the housing units, the buyers must pay stamp duty.

“The stamp duty and registration fees are charged twice for the same land,” said Credai-Rajasthan president Dhirendra Madan, “creating an unnecessary burden on the buyer and investor.”

Madan stated in the feedback for the budget meeting that they suggested to the finance secretary that the cascading effect of double stamp duty and registration charges be reduced, and that input credit is granted to the buyer or investor in the same way that it is done in the GST mechanism.

A joint development agreement is similar in that a landowner enters into a partnership with the builder. The landowner and developer each pay 1% and 2% stamp duty on top of the 1% registration fee.

Madan stated that the right to the land and the development is also transferred to the buyer in this case. “In this case, the developer bears an excess load, which is passed on to the buyer.” To encourage the expansion of the real estate sector, we suggested that the government set the stamp duty, including application fee, at 0.5%.”

The real estate association has also sought the government’s attention in order to promote green buildings in the state. States such as Kerala offer a 1% stamp duty exemption on green buildings certified by the Indian Green Building Council (IGBC). Kerala has also reduced property taxes for such structures by up to 20%.

“To pique the interest of investors and developers, the state government should provide a stamp duty rebate for green buildings and self-sustaining residential projects,” Madan added.

The tourism industry recently received industry benefits from the state government. Real estate developers want a similar policy for their industry. They cited the Telangana government’s numerous benefits to the real estates sector, such as 100% stamp duty reimbursement, a 25% land cost rebate, a 15% investment subsidy, and a 1% exemption in power tariffs. Madan believes that developers in the state should be reimbursed for land costs and conversion fees.