Stamp duty on poa
Girish
(Querist) 23 February 2013
This query is : Resolved
I am planning to buy a property in Bangalore. The seller is an NRI and interested in executing the Sale Deed by giving his POA to a non-blood relative. For registering a POA, he may be required to pay 6% Stamp Duty. His lawyer told me that this Stamp Duty paid for POA is later adjustable towards the duty paid during the final Sale Deed registration.
1) Is above understanding correct as per law?
2)While executing the Sale Deed should I
a) Pay complete Stamp Duty to sub-registrar office and the ask the seller to get it re-imbursed himself?
OR
b) Directly pay the Stamp Duty to seller as I am not required to pay any Stamp Duty?
Advocate M.Bhadra
(Expert) 23 February 2013
Stamp Duty for POA in India is Rs.50 and registration charges is extra which is nominal. To execute a Deed of Sale the stamp duty and registration charges depends on valuation of the property which will have to pay at the time of registration and it is vary from State to State in India.
Girish
(Querist) 24 February 2013
Hi Minansu
As per Art 41 of Stamps & Registration for Karnataka, if POA is not a blood relative, the seller is supposed to pay a Stamp Duty of 6% os valuation of property, which is later adjustable during execution of Sale Deed.
Can you check this please and let me know how it gets adjusted during Sale Deed execution?
V R SHROFF
(Expert) 24 February 2013
Go for POA to blood relations
Girish
(Querist) 24 February 2013
Sorry that doesnt answer my query
ajay sethi
(Expert) 24 February 2013
if the seller is not in position to execute sale deed but wants to appoint POA to sell the property it is his headache .
he has to pay stamp duty and get the registered power of attorney .
as far as buyer is concerned find out the value of property stamp duty payable on it and offer to pay the said amount on execution of document .
if seller wants any reimbursement let him get it done .
ihe refuses find another prtoperty . in this bear market no shortage of premium properties available for sale . it is the buyers market
prabhakar singh
(Expert) 24 February 2013
Only people practicing in Karnataka can authoritatively speak as stamp duty law are different in each state,i from U.P. can not say any thing unless I go with the Act you referred.
Why you are not relying the lawyer you are consulting.????
One thing is sure that it is buyer who has to pay stamp duty on the sale deed. Let duty on POA be paid by the vendor then when finally duty on sale deed is adjudicated after adjustment of duty paid on POA ,pay it on your sale deed and also pay cash to vendor against for his having paid on his POA since you have got it's adjustment.
