If you have paid more than circle rate then stamp duty has to be paid as per consideration paid by you
builder cannot insist that only circle rate be mentioned in registered sale deed
Sales deed registration - payment of stamp duty as per agreement to sell price
I purchased an under construction property in Gurgaon, Haryana in resale from the original allottee in 2014. An Agreement to Sell (ATS) was executed between me and the original allottee. The ATS has not been registered and I understand that registration of ATS is not mandatory in Haryana. The ATS along with all required documents were submitted in 2014 with the builder who duly transferred the property in my name in his records. The Builder assigned the Builder Buyer Agreement (BBA) and all relevant papers / receipts in my name. Now the registration of the property is in process and registration charges & stamp duty is to be paid. The Builder is insisting that the registration will be done as per the Circle rate only and not as per the consideration mentioned in the ATS. I have paid a higher consideration to the original allottee over and above the original sale price and it is mentioned in the ATS. The Stamp duty payable as per the ATS price is higher. The Builder is advising me to get an additional stamp paper for the difference amount in the Circle rate and the ATS price but is not willing to mention the ATS price in the Sale deed. I want the registration to be done as per the ATS price, however the builder is not cooperating.
Asked 4 years ago in Property Law
Religion: Hindu
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11 Answers
See legally the registration should be as per the price mentioned in the ATS only though in that case the original allottee need to be confirming party and the difference amount has to be shown to be.given to him.
See you can issue notice to builder to escape tax liability if he is insisting on lower amount though you will saving stamp duty in same same is not legal.
If builder fail to register same you can file a consumer complaint in matter.
Dear Sir Appreciate your prompt reply. The recital of the full consideration in the ATS specifically mentions the original selling price of the property as per the Builder Buyer agreement (between the builder and the original allottee) and also the premium paid by us to the original allottee over and above the original BBA price. The payment of the full consideration mentioned in the ATS has been done through DD / cheques by us to the original allottee and requisite TDS has been deducted and deposited with the authorities. The ATS between the original allottee and us was one of the mandatory documents that the builder required for executing the transfer in our names. The builder also got a relinquishment deed executed from the original allottee relinquishing his right in the property in our names at the time of transfer. In light of the above is it not mandatory for the builder to cooperate in getting the sale deed registered as per the ATS price.
Asked 4 years ago
1. IF you have documentary proof of the transaction amount in ATS, "only" THEN you can insist on registering the Sale Deed at that amount. ELSE NO.
2. Builder obviously has not declared the ATS amount in his records and there is some evasion of relevant taxation's. It is in your financial interest to register the deed as soon as possible and not leave any scope of legal disputes.
Builder has not received consideration paid by you to allottee
2) he has sold the flat as per BBA at sale price mentioned in agreement
3)hence he is not willing to execute sale deed as per ATS price
This is usual practice to evade stamp duty, showing low sale price in sale deed. ATS is not registered so why you are worrying. Buyer only pays stamp duty, your money will save only.
Payment is made through cheque/DD, stamp duty will paid on ATS price. Otherwise Income tax and revenue dept issues both for builder and you.
What was the need of relinquishment deed ? waste of money, no applicable in your case.
If the builder is not agreeing to sell the property as per the consideration amount mentioned in the sale agreement and you are not willing to adjust with the suggestion made by the builder/seller, you may drop the proposal ot buy the property and ask him to refund the amount received from you towards booking.
You can refuse to register the property as per the builder's instructions.
You insist that there should be a mention of the full sale consideration amount paid, in the sale deed and not the circle rate.
You can issue a legal notice to the builder in this regard if he is not agreeing for this along with a copy endorsed to the registrar.
The builder will then come running to you.
Stamp duty and registration rates are to be calculated on the actual transaction price. The minimum transaction price cannot be lower than the circle rate.
Yes the builder has to execute the sale deed as agreed in ATS if he fails suit for same can be filed.
Yes he has to co-operate. You can file writ petition in this case for appropriate directions also adding the sub registrar registration dept
Dear builder cannot force you to pay stamp duty as per circle rate if you have paid higher consideration.
But he is not willing for registration at higher price because he have not received the funds and he does the registration at higher price then he have to pay taxes according to price mentioned in sales deed.
