For Discussion in Forum about Double Stamp Duty on Property when Resale takes place:
(1) When a whole seller/distributor sells some goods to dealer/retailer, there are certain methods by which intermediatories gets Sales Tax rebate /setoff/adjusted, paid by them to whole seller or distributors, while filing their Sales Tax return. This is to avoid double Taxation and increase in cost to consumer.
(2) If a company earns profit-They pay income Tax on the profit so earned. Now when company distributes this profit to share holders by way of dividend on the Share held, previously Share holders were asked to pay income Tax on this income on which Tax has been already paid by the company. This was double taxation of the profit of the company. Since last few years now for this dividend in hand of Share holder, Share holder does not have to pay Income Tax., and as such double taxation is eliminated.
(3) When a buyer purchases an immovable property either a plot/bungalow/flat in Resale, he is required to pay Stamp Duty again –which has been already paid by the initial/first buyer. At the most resale purchaser should be asked to pay the difference of Stamp Duty now payable and already paid by the seller. Like Sale Tax buyer should get the setoff of the stamp duty already paid by the seller at the time of his purchase. Because of this double stamp duty cost of property keeps on increasing whenever any transaction takes place.
Will the learned friends of the Forum give their views and enlighten on this matter. Since I do not know in which catagory this topic can be taken for discussion,ie Taxation, Property Law or Civil Law, I have opted for Property Law. More over I have selected Question-icon as I did not know about selection of proper icon.Kindly excuse me for the same and also guide foe future.
Bhasker Parikh
