Ever since the government announced the introduction of a flat 9% registration charge on the total cost of flats, real estate players have been lamenting that consumers would be hit hard by the move.
The Confederation of Real Estate Developers’ Associations of India (CREDAI), Chennai, requested the government to roll back the hike. In response, Commercial Taxes and Registration Department Secretary B. Jothi Nirmalasamy has come out with a detailed explanation on the charges, and has also hit out at developers, saying they had misused certain directions issued in 2020 for registration of flats.
The department said it was a customary practice for the builders to first purchase the land and plan for the construction of apartments thereon to enter into a construction agreement with those looking to purchase the flats. While registering the documents in the name of the purchaser of the flat in the Sub-Registrar office, the deed of sale of proportionate undivided share (UDS) of the land and the construction agreement were being registered.
