I registered my flat in year 2017 and paid stamp duty accordingly. However in Nov, 2019, I received a notice that I did not pay stamp duty according to the market rate of the flat. The reason was: officer did the physical verification of the flat and found one board (vodafone mobile repairing service center) outside the flat. The claimed that flat is being used for commercial purpose and stamp duty have to be paid on the commercial value of the flat. I gave the flat for residential purpose to the tenant, but did not know he was doing commercial activities there, since I was living at a different location and did not visited the flat, hence had no idea, but once I came to know about this, I gave him the notice and got the flat vacated. The flat was in residential area and is on third floor. It was never meant for any commercial purpose, nor our intention was to be used as a commercial purpose. They have sought my response in this situation, and if not satisfied I would have to be revised stamp duty based on commercial market value of the said flat. What should be my response in this situation and is it right for them to asked for stamp duty and assuming the flat for commerical purpose eventhough I got that vacated?
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At time of physical verification it was found that flat was being used for commercial purposes hence stamp duty is being demanded at commercial rates
2) your reply should be premises used for residential purposes only
3) enclose copy of leave and licence agreement wherein it is mentioned that premises given on rent for residential purposes only
You have to give the explanation to the office. Apart from that thete is nothing else to do. In case he passes an order then you can challenge it.
Regards
1. Just simply give Affidavit explaining the situation about the Tenant and that Flat is on 3rd floor and that no commercial transaction is possible or was being done. Also declare that you have removed Tenant and undertake that in future no such Tenant or commercial activities would be allowed.
2. Request the officer to condone off the Notice and close the matter.
See you in your purpose can mention the complete details about tenancy and illegally use of tenant of property as commercial property.
You can mention that you shall further use property for only residential property only.
Demand is illegal. Property is residential, hence stamp duty will pay on same rate. Putting in commcerical purpose, no say of revenue department. Municipality can object.
Challege the demand notice before DG, stamp.
Stamp duty pays on status of property instead of use.
1. You should reply explaining the original situation that you didn't know about tenant doing commercial activity and as soon as you find out you have served the notice and get the flat vacated.
2. Attach copy of notice sent to the tenant and cancellation agreement to show that the property has been vacated and there is no commercial activities on flat anymore.
if you have leave and license agreement copy then you can challenge it.
If you have received any notice from the registrar's office to pay the difference in the stamp duty for the said reasons, you can give a reply notice to them through your lawyer denying their allegations. You can attach the copy of the rental agreement which clearly states that the premise was let out on rent for the residential purposes alone.
Besides you can add all those items to convince the authority that it ws not a commercial premises and it was let out only for the purpose of residence.
You can consult a local advocate and take steps to solve this issue without much problem.
You reply to the said notice through advocate and sent the same
