Development agreement in Andhra Pradesh (Vizag, Vijayawada): stamp duty and registration fee for joint development and DA cum GPA
Short answer: In Andhra Pradesh, a development or construction agreement carries 0.5% stamp duty (not adjustable), and a development agreement cum GPA carries 1% (not adjustable), under G.O.Ms.No.581 of 30-11-2013 (from 02-12-2013). The IGRS duty and fee table lists a registration fee of 0.5%, minimum Rs 1,000 and maximum Rs 20,000, plus Rs 100 user charges, for an agreement relating to construction or development.
The rows that apply to joint development
- Development / construction agreement (Article 6(B) as reduced by G.O.Ms.No.581): stamp duty 0.5%, not adjustable.
- Development agreement cum GPA and construction agreement cum GPA: stamp duty 1%, not adjustable.
- What the duty is charged on: the IGRS table says "0.5% of M.V. of land and construction". The Article 6(B) text says the market value or the estimated cost of the proposed property in the agreement, or the value from the Public Works Department schedule of rates, whichever is higher.
- Registration fee, agreement to sell, construct or develop (fee table, Category 1, row 10; IGRS table row 7): 0.5%, minimum Rs 1,000, maximum Rs 20,000. User charges Rs 100.
- Registration fee, development agreement cum GPA (row 6): 0.5%, maximum Rs 20,000.
- Separate power of attorney for construction, development or sale (IGRS table): Rs 1,000 stamp duty when given to a family member, or 1% of market value to anyone else; the registration fee row is 0.5%, minimum Rs 1,000, maximum Rs 20,000. See our AP power of attorney guide.
How the caps change the total
Example only, not a quote: the numbers below assume a value of Rs 1 crore adopted by the Sub-Registrar, just to show how the percentages and caps work. Your value depends on the land, the proposed construction and the office's own working.
- Plain development agreement: stamp duty 0.5% is Rs 50,000. The fee would be Rs 50,000 at 0.5% but stops at the Rs 20,000 maximum, plus Rs 100 user charges.
- Development agreement cum GPA: stamp duty 1% is Rs 1,00,000, and the fee again stops at Rs 20,000.
The fee cap in AP is lower than Telangana's, so on large projects the stamp duty is most of the cost. Check the published value with our AP market value guide, and try the IGRS duty fee calculator before you pay.
What the AP Property Purchase FAQ says about developers
The FAQ notes that a person who holds an agreement and a power of attorney to sell is "normally a developer", and that such a power of attorney must be properly stamped and registered if it is coupled with a sale or development agreement or given for consideration. It also says the power of attorney should not have been revoked. Buyers of a flat from a developer's share should ask for both documents and check them in an EC (AP EC guide).
The share ratio, the deadlines, the penalty clauses and whether a power of attorney can be cancelled are contract questions for your own lawyer. This page only lists the published stamp duty and registration fee rows and the steps the department describes. Not legal advice.
Landowner's checklist before signing
- Your own title, pattadar passbook where relevant, and an EC for the land
- The published market value for the survey or door number
- The developer's building permission once applied for (AP building permission and OC guide), and AP-RERA registration where the project needs it (how to verify an AP-RERA project)
- Whether the GPA is inside the agreement (1% duty) or a separate deed
- Stamp paper or e-stamp for the duty (AP e-stamp and franking guide)
Buying a flat rather than developing land? See agreement of sale vs sale deed in AP. Land in Hyderabad? See the Telangana development agreement guide.
A free sample from our Andhra Pradesh property do-it-yourself pack for NRIs: which portal to open, in what order, what to ask for, and what to keep on file.
Get it free (instant download)FAQ
What is the stamp duty on a development agreement in Andhra Pradesh?
Under Article 6(B) as reduced by G.O.Ms.No.581 of 2013, a development or construction agreement is 0.5% and a development agreement cum GPA is 1%, both not adjustable. Confirm current rates at the Sub-Registrar office.
What is the registration fee for a development agreement in AP?
The IGRS duty and fee table lists 0.5% with a minimum of Rs 1,000 and a maximum of Rs 20,000, plus Rs 100 user charges. The fee table lists 0.5% up to Rs 20,000 for a development agreement cum GPA.
On what value is the duty charged in AP?
The IGRS table says the market value of land and construction. The Article 6(B) text says the market value or estimated cost of the proposed property, or the PWD schedule of rates value, whichever is higher.
Is a separate GPA to the developer cheaper?
The IGRS table lists Rs 1,000 stamp duty for a power of attorney for development or sale given to a family member, and 1% of market value when given to anyone else. A developer is usually not family, so ask your lawyer which structure fits. Not legal advice.
I'm buying a flat from the developer's share. What should I check?
The AP Property Purchase FAQ says the developer's power of attorney must be properly stamped and registered when tied to a development agreement, and must not have been revoked. Ask for both and check them in an EC.
Official sources
- AP IGRS: Duty and fee details (home page)
- AP IGRS stamp duty schedule, Article 6(B) (PDF)
- AP IGRS Registration fee table, G.O.Ms.No.463 of 2013 (PDF)
- AP IGRS Property Purchase FAQ (PDF)
Not legal advice. We don't check properties or certify ads. A lawyer must confirm title, and the Authority's own notices override anything on this page.