Levy of stamp duty on unsold flats
KETAN J SHAH
(Querist) 10 April 2014
This query is : Resolved
Respected Sir's
We as builders developed our property in 2007 by adding 3 floors to the existing building which was constructed in 1968. There are about 20 residential and commercial tenants in the 2 wings. After construction of 3 additional floors there were 6 new tenaments constructed. All these 6 new tenaments were sold on ownership basis. Also from out of the 20 old tenants 2 residential and 2 commercial tenants were converted to ownership. The conveyance of the Land was given to society after formation of society.
The stamp duty was fully paid on all the tenaments which were sold on ownership. However the rest of the tenaments are still with the builder. They are neither sold nor conveyed to the society.
Collector of stamps has issued a notice to society about 10 times in last one year saying that the stamp duty is not properly paid on the related conveyance document.This notice has been sent to the society asking for a payment of Rs 54 Lacs.
As per a notification issued in Globus Magazine it says that the Inspector General of stamps of Maharashtra will issue a circular saying that NO stamp duty is payable if Landowners/ Builder retains some flats and commercial tenaments after developing their properties.This was also informed to the High court by the Additional government pleader.The lawyer said that retaining some commercial and residential premises cannot be treated as conveyance as envesaged in Bombay Stamp Act 1956 and therefore NO stamp duty can be levied.
All the documents confirming that the unsold premises are with the builder, the share certificates issued by the society in the name of builder, the rent receipts issued by the builder/Owner to the tenants are submitted to the collector of stamps Kurla. But he is still not satisfied with the correspondance and is still issuing notice for payment.
Please advice as to what the society and the builder should do to get the notices cancelled. The Collector is asking the society to come to Pune and clarify the matter but what if even after going to Pune he does not understand the situation
Please advice.
Thanking you in advance
T. Kalaiselvan, Advocate
(Expert) 12 April 2014
It is better to have a legal approach to the issue, contact a lawyer who is conversant with the realty laws and is knowledgeable on such issues and proceed as per his advise.
