The Andhra Pradesh government in a bid to offset the revenue loss due to the real estate slump last year, ordered a fresh assessment of market value of all types of properties and effect the increase immediately.
The Andhra Pradesh government while issuing the orders for a upward revision of the market value of land and other forms of property in the urban as well as rural areas of the State wherever necessary, said, the exercise is being done to keep registration values inline with the property prices prevailing in various parts of the state.
According to the official sources, registration charges will go up once the revised market value of land becomes effective from the 15th April 2010.
Keeping with government orders, the Stamps & Registration Department officials have started a Statewide exercise to assess the actual (real) values of the lands and properties in consultation with their counterparts in the Revenue Department and tabulate them location-wise after upward valuation. The revised market values will be displayed at the sub-registrar offices all over the State, by 15th April 2010.
Revision is applicable to Apartments too
According to the registration department sources, the assessment is being made in case of flats and apartments too in urban areas, especially in Visakhapatnam, Vijayawada, Tirupati, Guntur, Warangal, Rajahmundry, Kakinada, Kurnool, Khammam,Nellore, Ongole etc where the value of land and property has gone up steeply. However,in contrast, the property prices in Hyderabad and its suburbs remained subdued or crashed by 15 to 20%.
Once the enhanced market values are displayed at subregistrar offices in the state, people purchasing the lands and properties will have to pay more towards registration charges.
Although the rates or percentages at which stamp duty, transfer duty and registration fee are collected remain unchanged, the “registration charges” go up as these will be collected on the enhanced market values.
Government sources said the they planned to effect an upward revision of the market values in all the urban and rural areas from April 1 for registration purpose as such hike was due from August 1 last. Under the new policy, the market values will have to be raised annually for both rural and urban areas.
It, however, deferred the decision, fearing possible public outcry and in view of the slump in the real estate market due to global slowdown.
The figures released for the year ending 31st March 2010, the Stamps & Registration Department incurred a 23% shortfall in revenue accruals. While increasing the target for the new financial year by almost 10%, the government has set a whopping Rs. 3500 crore as the new benchmark.
It is no secret that government found an indirect way to fill its coffers by increasing the property values without touching the figures of stamp duty, transfer duty and registration charges.
This move, is certainly going to create ruckus in the real estate sector in the state which is slowly but steadily recovering from the economic and political jolts.
After all, the state is now under the rule of a man who is known to be the master at playing tactics vis–vis financial management.