Welcome, Guest    
 
Login  Contact Us RSS Feeds
Home
  Add Property                
Register Free to find a Perfect life partner In AnytimeMatrimony | Equated Monthly Installment(EMI) Calculator | Stamp Duty Calculator | Area Conversion Calculator | Know answer for your Taxation query | Ask Legal Advice @ Free of cost | Vaastu Tips
FAQ Sitemap
 
Newsletter Signup
Subscribe for our property news letter



 
 
News Search
Type a keyword to search.



[OR]

Select a city to search property news.


 
 
News Archieves
September 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
September 2008
June 2008
February 2008
January 2008
December 2007
November 2007
 
 
External Links
 ICICI Home Loans
 LIC Housing
 HDFC Home Loans
 SBI Home Loans
 Axis Bank Home Loans
 Tamilnadu Govt Links
adProperty News

     
 
Issues in determining stamp duty
Source : The Hindu Property Plus Published On : 2008-02-09 City : Chennai

Stamp duty on a sale is to be assessed on the market value of the property at the time of sale, writes C.H. GOPINATHA RAO

 

The Supreme Court in the case of State of Rajasthan vs Khandaka Jain Jewelers, (2008 (1) CTC 60 C.A.No.5273 of 2007) has observed that the stamp duty is payable on the market value of property as on the date of execution of sale deed and not on the date of agreement for sale.

     In this case, the purchaser entered into two separate agreements with vendor in 1983 for purchase of two properties. However, the vendor failed to comply with the terms of the agreement and never executed the sale deed, Purchaser then filed a suit for specific performance which were decreed by the trial court in 1994. The purchaser filed another execution application in 1994 and the court directed the purchaser to submit stamp papers for execution of the sale deeds.

     The purchaser then submitted stamp papers based on the value as on the date of agreement for sale. The court executed the sale deeds and sent the same for registration to the Sub-Registrar of the Registration Department. However, the sub-Registrar exercising his powers assessed the value of the property as on the date of execution and found that the documents deficient in stamp duty.

     The purchaser subsequently filed a writ petition challenging the order. He argued that the pendency of litigation could not prejudice him by directing him to pay stamp duty on the date of registration of sale deed. Writ petitions were allowed and the authorities were directed to pass fresh orders regarding the levy of stamp duty.

 

Date of execution

 

     The authorities approached the Supreme Court and the case was settled in the Supreme Court where it was decided that the stamp duty is payable on the market value of property as on the date of execution of sale deed and not on the date of agreement for sale nor on the date of filling the suit for specific performance. There is a difference between an agreement to sell and a sale.

 

     Stamp duty on a sale is to be assessed on the market value of the property at the time of sale. Neither the date of agreement of sale nor the time of filling of the suit would matter. Act. It is true that as per section 3, of the Stamp Act, the instrument is to be registered on the basis of the valuation disclosed therein.

     But Section 47-A contemplates in case it is found that properties are undervalued then it is open for the Collector (stamps) to assess the correct market value. The Stamp Act is in nature a taxing statue and a statue taxing is not dependent on any contingency.

     It is true that no one should suffer on account of the pungency of the matter but the consideration does not affect the Principles of interpretation of a taxing statue.

     A taxing statue has to be construed as it is. All contingencies that the matter cannot be taken into account for interpreting the provisions of a taxing statue. Hence since because the matter has been in litigation for a long time, it can be taken as a consideration o accept the market value of the instrument.

    Back
 
     

 

More on Anytimeproperty
 
City Based Properties
 
Useful Tools Property News Search Property Calculators Others
© 2017 Any Time Property All Rights Reserved. Home | About Us | Advertise | Testimonials | Help & Support | Contact Us | Careers | FAQ | Feedback | Sitemap
Privacy Policy | Terms and Conditions Developed by Snick Technologies