Stamp duty

shailendra khatri (Querist) 30 July 2016 This query is : Resolved
An open land cooperative housing society was formed and registered as per the MCS Act 1960 by some of the members.

Mainly purpose of formation of the said society is to buy the land jointly and construct building thereon for self use.

However, later on society member came to know that there is a reservation on a part of the Land of Local Corporation so it is difficult to construct the building.

Hence, members got the registration of society cancelled by competent authorities so that said land can be transferred to each member of the society and they can record their name on property card.

Now society registration is cancelled by competent authority and in the order it is mentioned that member can get the land transfer on their individual name.

Now owners have to execute conveyance deed in their favour on the basis of said order.
So whether stamp duty would be applicable on that conveyance deed or not ?

As per my opinion stamp duty would not be applicable since society is an association of members and co-operative movement was initiated for the benefit of its member and when the purpose of formation of Society was not fulfilled and its registration is got cancelled than ultimately member will become the owner of the land.

Note: While buying the said land from Original owner stamp duty was already paid on earlier Conveyance Deed.

Getting different opinion from people request you to confirm the same with some judgment and law.

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Guest (Expert) 30 July 2016
Proper process will be in this case

1) Make draft Conveyance deed from Society to individual member with all attaching documents and orders etc , certified copy of all documents attached to conveyance deed.

2) Send this paper for Adjudication to Collector of Stamp and Registration in your district

3) Present your case properly within scope of Stamp Act to that officer .

4) He will do adjudication and tell you in writing exact figure stamp duty and registration fee payable .

5) If you have objection then under stamp act you can appeal , there are 2 appeal

6) But whatever decision is final that much stamp duty and registration fee you have to pay

7) After two appeal you are not satisfied then under Writ jurisdiction you can contest in High Court against that order.

8) This is proper legal method , instead of asking 10 people and getting confused make proper documents and submit it for adjudication with proper legal help presenting your side of case to Collector of Stamps and Registration .

9) While presenting your side to adjudication Advocate will require to even refer similar type of case law , so case can be strong

adv.bharat @ PUNE (Expert) 30 July 2016
Agreed with Mr. Madhu. HE had explain details process for paying stamp & registration to collector of stamp & registration.