The Hindu Business Line : TN: Stamp duty cut on transfer of NPAs

THE Tamil Nadu Government has reduced the stamp duty and registration fee on the transfer of non-performing assets (NPAs) of banks to asset reconstruction companies under a legislation enacted by the Centre.

Presenting the 2005-06 budget on Wednesday, the Finance Minister, Mr C. Ponnaiyan, said the transfer of the NPAs to asset reconstruction companies attracted 6 per cent stamp duty. Due to the high rate of stamp duty, such deeds were not coming up for registration in Tamil Nadu.

To encourage registrations in the State, the rate of stamp duty on such transactions will be lowered to 0.1 per cent with a monetary cap of Rs 1 lakh. The rate of registration fee will be reduced to 0.1 per cent with a monetary cap of Rs 20,000.

The Minister said banks lend by securing properties and at times, these loans are not repaid properly, following which the properties secured become NPAs.

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