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Viswanathan Venkatraman   16 September 2024

Stamp duty and registration charges on corpus fund and advance amc

I am from Tamilnadu and have purchased an apartment from a reputed builder. Builder has indicated that the amounts payable towards Corpus fund and Advance maintenance charges for 12 months will be included in the cost of flat and will attract stamp duty and registration charges.I am of the view that these are not amount due and payable to builder and by browsing the net also find that it does not form part of the flat cost.Are there court judgements to support this? pl guide.

Viswanathan V

viswaprema2000@yahoo.com



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 7 Replies

T. Kalaiselvan, Advocate (Advocate)     16 September 2024

The builder is trying to fool you and getting more money in the name of stamp duty and registration charges.

Ask him to show the registration document containing this particular amount reflecting as sale consideration amount.

The corpus fund and the AMC  amount are totally different to that of the original  sale consideration amount, you can refuse the same and if the builder is still insisting then you can send a legal notice demanding him to tell that under which provision of law that he is demanding this amount after which you can escalate the matter not only through legal forum but also through newspaper and other social media, by which the reputation of the builder will be shattered.

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Viswanathan Venkatraman   16 September 2024

Thank You Sir. I have aske for the relevant rules.He says Registration auth are insisting on Agreement value as basis ( which includes Corpus fund and AMC). I have contested and now he says they have referred to Regn auth. Waiting for further inputs from them.Regards. VV 

T. Kalaiselvan, Advocate (Advocate)     16 September 2024

You can wait until they produce any circular or provisions of law in this regard, if they fail to do so, you may refuse to accept their demand.

Viswanathan Venkatraman   01 October 2024

Sir, The builder has stated that as per TNRERA all amounts mentioned in the agreement as agreed value have to be included for stamp duty including Corpus fund and Advance maintenance charges and it is legally binding on them to register the composite agreement which encompasses corpus fund and AMC. This is the standard approach adopted by them and it will apply to me as well.Can any of you pl.guide me in the matter? Will knocking at the doors of TNRERA will help? or should i seek clarification under RTI? Pl help.Thanks and Regards 

 

T. Kalaiselvan, Advocate (Advocate)     02 October 2024

They will inform everything orally, you don't accept their explanation, you may insist on the relevant law in this regard, failing to listen you may approach RERA or even the court of law with a suit to restrain the builder from collecting the stamp duty for those items which do not attract registration.

You can first issue a legal notice to the builder demanding the relevant law towards his demand on the subject matter

Viswanathan Venkatraman   02 October 2024

Thank You Sir.I will do as advised.Regards. VV 

T. Kalaiselvan, Advocate (Advocate)     03 October 2024

You are welcome for your understanding as well as appreciations.


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