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Ajay DUtal (Service)     24 November 2010

Stamp duty applicable after court order

There is one company in which two brothers are directors. Aftrer some dispute they filed the case in the court for Demerger of property. And now court has given the order for demerger of property in theree parts

1. Original Company in which two brotheres are directors

2. Company form by Son of older brother

3. Company frrm by son of elder brother

Now i want to ask whether the stamp duty is applicable for this transaction where no consideration is mention and sub division is with in the blood relation



Learning

 4 Replies

Adv. K.S.A.Narasimha Rao (legalquestadvisor@gmail.com )     09 January 2011

hi,

You have not specified the state where ur registered office is located.

It know exact stamp value of the property and percentage of stamp duty, go to the local registration office along with the certified copy of the orders and know the exact procedure to pay the stamp duty and make entry of the same in registering records.

 

Ajay DUtal (Service)     10 January 2011

Thanks for your reply,

The property is situated at MIDC Taloja, Dist. Rigad, Maharashtra.

I have to tell you that the director of theree companies after demerger are same (with in family) and ratio of the share is also same in three companies.

Whether stamp duty is applicable for this transaction. 

nakul (advocate)     10 January 2011

Stamp duty is payable on the courts order in the case of Merger as there is transfer of property involved due the said process .

High Court and supreme Court have cleared out in their Judgements .

Irrespective it is among brothers , Company forms a seperate legal entity and demerger is of those companies although behind curtains you brothers are having family partitions , stamp duty is payable on the Courts order since that amounts to transfer of property 

Adv. K.S.A.Narasimha Rao (legalquestadvisor@gmail.com )     11 January 2011

I agree with Nakul


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