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aksinha   27 June 2015

Consequences stamp duty not paid as per market rate of land

Dear Sir

1) what are the Flip sides of saving on stamp duty. Stamp duty charged and paid at Circle Rate for Residential Land (not agriculture land), whereas the Agreement to sell was at nearly double the circle rate. Receipts for Cheque and Cash payments made are available.

2) In case I file a case against the private builder for not developing the plot, and not providing internal roads, as Promised in the Agreement, can I produce the agreement in the Court without attracting penal provisions, if any, for not paying Stamp Duty as per the actual rate of purchase.

3) what are the penal provisions for not paying stamp duty as per the actual rate of plot. 4) the pvt builder sold the plot at different rates to different buyers. He sold it to me at about 1/2 times more than other buyers at the same time during December 2012. This can be verified from the Agreement papers of the other buyers. Can a case be filed on this issue, and can the court call for agreements made by builder with other buyers?

5) which is the appropriate forum for filing a case; Consumer Forum or Lower Court in the Distt?

6. is cash payment allowed in land deals? where can I find the instructions regarding methods of payment in land deals?

Best regards

AK Sinha

 



Learning

 1 Replies

Jatin Mittal (Corporate Lawyer)     11 July 2015

Dear Mr. Sinha

The amount mentioned in the agreement to sell is not the subject of stamp duty. The stamp duty shall be in accordance with the amount mentioned in the sale deed. If you paid the stamp duty as per the amount mentioned in the sale deed/conveyance deed, then you are nowhere at default. Secondly, the instruments executed with the lesser duty than required are inadmissible in the court, but that may be corrected by paying the differential duty. Thirdly, there is no laid down menthod of making the payment. You can either pay in cash, cheque, demand draft, etc. the way you are comfortable with. If you are able to give the proper source of money to the income tax authorities, then it is your wish how you want to make the payment.

For any other clarification, please feel free to write to me at mittaljets@gmail.com. No charges for the consultation.


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