I have gone through your questions. But I require more facts . You may also elaborate a little more. Any way this Ozhimuri is a document which is excecuted when you relinquish your share in a property. I fail to understand how such a document is required when a person settles his loan with a coperative bank. I feel that there will not be a tax liability under the Income Tax Act (Sec 56) assuming that the ozhimuri is in favour of the relatives listed in that section.
Regarding the second question generally speaking you may have to pay service tax if the relationsip is that of a contracor and client. But if the agreement is to bulid and then transfer the property then there will not be any service tax as per the circular issued by CBEC in january 2009. But the matter is now pending before the Supreme court. So you may pay the service tax to the contractor but make a claim directly with the department WITH IN 1 year from the date of the said payment.
You may also be visited with the liability under the Kerala Value Added Tax Act where there are facilities for compounding etc for the contractor. As an awarder you have the liability to deduct tax at source from the payments you make to contractors.
Regarding the stamp duty you will have to pay at the stage of agreement but please confirm the same with the document writer as I am not sure about the same.
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