Stamp duty on Cancellation Deed
Arati Gawde
(Querist) 19 November 2010
This query is : Resolved
If both the parties want cancel the transaction (Sale of immovable property), then whether it is necessary to pay full stamp-duty on property at the time of registration ? or Rs.100/- franking is enough for Cancellation Deed.
s.subramanian
(Expert) 19 November 2010
cancellation of a SALE DEED has to be done only by filing a civil suit. It cannot be done by a cancellation deed. it is something unknown to law.
Sri Vijayan.A
(Expert) 19 November 2010
www.tnreginet.net is the official website of TN registration department, wherein a sample cancellation deed is attached.
In the deed a sale deed has been cancelled, for non-payment of sale consideration.I attached the copy of it for ready reference.
But normally, cancellation for non payment can be done thru suit only, bcoz sale is completed when possession is given and then the cancellation is considered as re-conveyance which attracts full stamp duty.
But as per the said site, cancellation deed need bilateral execution and requires Rs.100 stamp
Kirti Kar Tripathi
(Expert) 21 November 2010
yes, once sale is completed no cancellation can be made, unless, there exist any fraud, undue influence etc. by the any of the party, which may lead the sale voidable at the option of party and same can be done only through court. otherwise, it will be deemed further sale and proper stamp duty is required to be paid
