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FAPCCI wants stamp duty increase reversed

Our Bureau

Hyderabad , Nov. 21

THE Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) has urged the State Government to reconsider the upward revision of stamp duty on the agreement of deposit of title deeds to be executed in favour of banks for obtaining loans.

The increase, the Chambers argued, would adversely affect the small and medium enterprises sector, which is already reeling under various constraints and restrictions.

In a press release today, the FAPCCI said the increase from the present level of Rs 100 would affect the industries in meeting the competition at the national and international level.

From August 1, the State Government enhanced the stamp duty as follows:

  • 1) 0.5 per cent of the loan amount, subject to a maximum of Rs 50,000.

  • 2) If the loan is repayable on demand or more than three months, 0.5 per cent of loan amount, subject to a maximum of Rs 2 lakh.

  • 3) If the loan is repayable within 3 months — half of the amount/duty payable at the above rate (as in 2) for above Rs 1 lakh.

    Since the hike would increase the cost of borrowings from banks, FAPCCI has made a representation to the State Minister for Revenue requesting the Government to reconsider.

    The FAPCCI President, Mr C.V. Atchut Rao, said on account of the steep increase all the industries and other concerns are required to pay higher stamp duty and it is additional to their cost of operations. This would ultimately lead to increase in the cost of production and the prices of products brought out by them for sale.

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