Stamp duty has to be same of land by company in Rajasthan
2)
Urban Areas
6% of the property’s market value
Rural Areas
5% of the property’s market value
Stamp duty related in Rajasthan in case of company land sale
We have a company registered in name of novle realtech pvt ltd registered in delhi. the company has only one land of approx 2.6 cr value in makassar tehsil district hanumangarh, rajasthan. the land is in name of company. earlier in 2017 there were 3 directors, one of them viz anil sharma resigned in 2017 and other two viz gaurav and rajni sharma resigned in may 2022. then the company was tookover by deceased mr vidya sagar gupta and myself sharad kanodia. after the deceased his shares were transferred to sumitra devi gupta (deceased wife). now we are selling the land and buyer wants registry in name of their individual names. i want to know the stamp duty rules related to this. as per rajasthan revenue department we are liable to pay stamp duty, but as far as my knowledge goes in case of company transfer the stamp duty is not payable. pls guide us and help and if there is any such circular pls arrange for the same.
Asked 6 months ago in Property Law
Religion: Hindu
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9 Answers
when the land was taken in name of company then stamp duty was paid and then after that only shareholder have changed. then why dual tax. pls connect me on [deleted] or [deleted]. This time why stamp duty again to be paid. please elaborate your answer sir.
Asked 6 months ago
You have stated that company is selling the land in name of individual buyers
it is sale deed by company hence stamp duty and registration charges are payable
Generally, partners in a company cannot individually sell the company's immovable property. The sale of such property usually requires the consent of all partners and may involve specific legal procedures like a registered sale deed
A partner's implied authority under the Indian Partnership Act does not typically extend to transferring immovable property belonging to the firm.
Stamp duty in Rajasthan is the taxes to be paid by a buyer when they purchase a property. This is controlled by the Rajasthan Stamps Act 1988.
While the buyer is generally responsible for stamp duty, it's essential to review the specific terms of the sale agreement, as it might outline different arrangements.
The company is the seller hence the buyer only is liable to pay the applicable stamp duty as per the prevailing rates and the registration charges.
The company paid the stamp duty at the time of purchase of the property but at the time of selling, it is the buyer who has to bear the charges towards the stamp duty and the registration fees.
If there is transfer of immovable property in different names it will incur stamp duty and registration charges. If no transfer in different hands then no additional stamp duty required
- As per the Rajasthan High Court , changes in a company's directorship do not equate to a transfer of property ownership, and thus, do not trigger stamp duty obligations.
- However, this pertains to internal corporate changes and not to the sale of property to external parties. Therefore, when selling land to individual buyers, stamp duty is payable on the conveyance deed.
- The stamp duty rate for a sale deed in Rajasthan is 6% of the market value of the property and registration charges are an additional 1% of the market value.
Dear Client,
The stamp duty is a state subject. It is not imposed upon legal agent of the sale or purchase of the immovable property, but rather upon the transaction which gives effect to the transfer. The sale Deed is the important document, which transfers the ownership rights legally, between two parties.
And your knowledge ("in case of transfer of company the stamp duty is not payable"): That is yet another misunderstanding due to some people confusing the asset transfer with a share transfer.
In case the shares of an organization are sold by one individual to another person, then stamp duty is charged on the transfer of the shares (which is generally a nominal amount or on value of shares is allowed as per Companies Act and stamp duty provisions on financial instruments, not on land). In this case, the company does not lose the ownership of the land but rather the owners of the land shifts to the change of shareholders in the firm.
but in your situation, it is unique because Novle Realtech Pvt. Ltd. is selling land directly to people. This is a sale of asset by the company. In case the company sells the land, it will be transferring the title of the immovable property.
Sub Registrar Amudalavalasa v. M/S Dankuni Steels Ltd. ((2023) 10 Supreme Court Cases 601 or 2023 SCC OnLine SC 499):
- This recent Supreme Court judgment dealt with the assessment of stamp duty on composite sale deeds involving immovable property and embedded plant & machinery.
- The Court reiterated that all immovable components within a composite sale deed must be thoroughly evaluated for stamp duty. It emphasized the necessity of accurate valuation and the fact that a single instrument encompassing multiple distinct matters demands an aggregate computation of stamp duty based on the total value of all included assets.
- While this case specifically dealt with plant and machinery being part of "immovable property" for stamp duty purposes, the core principle is that when property is transferred by a sale deed (whether by an individual or a company), it attracts stamp duty.
I hope this answer helps. In case of future queries, please feel free to contact us. Thank you.
For further sale to third party, again stamp duty will be paid. Every time when the land will sale.
