The prime minister's statement has been welcomed by private players in the sector, saying it will help cleanse illegal funding
New Delhi: In order to check flow of black money into the real estate sector, prime minister Manmohan Singh today said stamp duty needs to be reduced, a step that realty players welcomed, stating it will bring in more transparency, reports PTI.
"I think as far as black money in real estate is concerned, unfortunately that is a reality and one way out of this would be to lower the stamp duties," Mr Singh said at the India Today Conclave here.
Replying to a poser on black money transactions in the real estate sector, the prime minister said stamp duties in the country are a "big obstacle to cleaning the mess with regard to transactions in real estate.
"So that's one way, in which we can work towards a system whereby black money would be less of a menace in transactions relating to real estate."
The prime minister's statement has been welcomed by private players in the sector, saying it will help cleanse illegal funding.
"Whatever the prime minister has said, is absolutely true. There has been rampant use of black money in the real estate sector. I think, this is a welcome move and will help the sector," Tata Housing Development Company managing director and CEO Brotin Banerjee told PTI.
Stamp duty is a property tax, to be paid in almost every deal at a prescribed rate on the transaction value or calculations based on circle rate, whichever is higher. It varies from state to state.
This particular tax varies from around 4% in Mumbai to about 13% in Kerala. Haryana charges 6% as stamp duty on properties, while it is 8% in Uttar Pradesh. Most of the states charge around 6%-8%.
Industry players have been asking to reduce stamp duty for a long time, terming it an unfavourable levy on the way to offer affordable housing to consumers. At present, stamp duty is charged from both consumers and developers.
Mr Banerjee, however, said Tata Housing does not indulge in trading black money in developing projects and utilises funds that are generated in a "transparent" manner.
"Reduction of stamp duty will benefit both consumers as well as developers. Currently developers pay stamp duty while registering the land and consumers again pay stamp duty while taking possession of the flats," he said.
He also said rationalising of the duties to around 4% will also help discouraging the firms in under-quoting property prices, thereby, checking revenue losses to the government.
Parsvnath Developers chairman Pradeep Jain said stamp duty needs to be rationalised as it will lead to corporate governance and transparency in deals.
"The central government had set up a fund to compensate the states to a certain extent which reduces the duty. Availing this, some states such as Delhi and Uttar Pradesh have cut stamp duties... Other states should also follow this," he added.
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RIL has projected natural gas output from the two fields to fall to 38 mmscmd in 2012-13 from current production level of 43-44 mmscmd
New Delhi: Reliance Industries (RIL) has projected s 13% drop in output from the nation's biggest gas fields in the KG-D6 basin to 38 million standard cubic meters per day in 2012-13, reports PTI.
In its annual work program submitted to upstream oil regulator Directorate General of Hydrocarbons (DGH), RIL stated that natural gas output from Dhirubhai-1 and 3 or D1 and D3 gas fields in the block KG-DWN-98/3 or KG-D6, will be about 38 million metric standard cubic metres per day (mmscmd) in 2012-13 from current production level of 43-44 mmscmd.
Up to 9 mmscmd will come from D-26 or MA oil field in the same block, taking the total output from the deep-sea area in Bay of Bengal to around 47 mmscmd. At present, KG-D6 block is producing around 51-52 mmscmd.
Officials with direct knowledge of the development said RIL has projected maintaining the current production levels during 2011-12 fiscal.
A Reliance spokesperson, however, did not offer any comments.
RIL presently sells 14 mmscmd of gas from KG-D6 to fertiliser plants, 24 mmscmd to power plants and the remaining 13 mmscmd to other sectors like sponge iron plants, LPG, city gas distribution (CGD), petrochemical plants and refineries.
Officials said the company has projected crude oil output from the MA field in the same block to fall to 12,050 barrels (bpd) per day from about 17,000 bpd current production.
The RIL stock was trading 3.38% lower at Rs 996.55 a piece on the Bombay Stock Exchange at around 1pm.