Stamp duty - takeover of business by company read more at: http://www.caclubindia.com/experts/ask_q
shrey
(Querist) 08 November 2012
This query is : Resolved
Dear Friend
Company is taking over running business of Proprietorship firm for consideration of 1 crore paid through issue of shares.
Properties under takeover are all MOVABLE. We have executed Takeover Agreement to keep things in written
However I find there is applicability of Stamp Duty under Entry 23 (attached herewith) of Rate of stamp duty as applicable in state of Delhi (under conveyance) as agreement talks of sale of property, however if sale purchase movable property individually no Stamp Duty is applicable.
Pl suggest how to plan this deal without paying any stamp duty
Sec 2(10) define Conveyance as :
“Conveyance.”
(10) “conveyance” includes a conveyance on sale and every instrument by which property, whether moveable or immoveable, is transferred inter vivos and which is not otherwise specifically provided for by Schedule I 5[or by Schedule I-A, as the case may be;]
As per transfer property act : every property which is not IMMOVABELE is movable property
Thank you in anticipation
ajay sethi
(Expert) 08 November 2012
company can afford legal fees . contact a local lawyer .
Rajeev Kumar
(Expert) 08 November 2012
Better to hire lawyer and do as per as his guidance.
shrey
(Querist) 10 November 2012
I am myself a lawyer.
Anyways thanks for ur valuable time.
V R SHROFF
(Expert) 10 November 2012
I agree with view of Ajay.
shrey
(Querist) 16 November 2012
Thanx for the as usual moral suasions !!
May anybody answer my queries pls
