Stamp duty on property purchased within 1 year of 1st sale from developer to seller
Dear Sir/Madam - I am in the midst of purchasing a resale flat in Thane, Maharashtra on which Stamp duty was paid on the sale agreement between Developer (Builder) and Seller (Flat Owner from whom I am buying the flat) in Dec. 2018.
Since, it is less than a year, I am being advised by Broker that "as per law, I am now required to pay 2% Stamp Duty only and 5% Stamp Duty paid earlier will be considered and my 7% Stamp Duty obligation will be deemed to have been met." The receipt of Stamp Duty in the seller's name will be given to me and also form part of resale agreement which I am registering now.
I have 2 queries -
1. Is this a legally valid interpretation of the situation above ?
2. To be safe, should I insist that I will pay the full 7% Stamp Duty and ask the Seller to subsequently claim refund of this 5% Stamp Duty ?
Thanks in Advance.
Swapneel
Asked 6 years ago in Property Law
Religion: Hindu
Sir, Madam - Apparently, Article 5 (g)(a)(ii) of Schedule 1 of Bombay Stamp Duty Act when read with Article 25 are the relevant provisions for lesser stamp duty which can be offsetted against the stamp duty otherwise payable by me. Please clarify further as the expectation is that I should then pay the amount of the difference in stamp duty thru separate cheque to the seller (and this is where my resistance is). Kindly advise.
Asked 6 years ago
Please advise if my following interpretation from various answers I got on this forum is right -
1. Article 5( g)(a)(ii) of Schedule 1 of Bombay Stamp Duty Act when read with Article 25 allows only Developer to claim benefit of previous Stamp Duty when Developer is selling to 'Subsequent Purchaser' within 3 years of First Purchaser Sale ?
2. The same benefit is not available when it is a 2nd sale wherein the first Purchaser is selling to a subsequent purchaser and in which sale the Developer is not involved.
Thanks in advance.
Swapneel
Asked 6 years ago