Not aware of any such circular
stamp duty should be split between seller and buyer for sale of land in favour of purchasers
Is stamp duty paid by seller in case of company selling land to individual in Rajasthan
Legal advice online in India 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 BY THE SELLER. IS SELLER LIABLE TO PAY ANY STAMP DUTY IN STATE OF RAJASTHAN 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
9 Answers
4% +1% of the market value of the immovable property.
Dear Sir/Madam,
The company is just a legal person and the moeny to be paid by the directors of the company and seller in case of sale deed. There is nothing specific in law as to who must pay the fee/stamp duty but the same must be paid.
The company can transfer the property in favor of a seller only by executing a registered sale deed and not byan unregistered sale deed.
Section 17 of the Registration Act, 1908, mandates the registration of certain documents related to immovable property.
This section specifies which documents must be registered to be legally valid, ensuring transparency and preventing fraud in property transactions.
The sale deed is also a vital document to prove the transfer of title to the buyer by the vendor.
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.
Payment of stamp duty and registration fees depends on mutual agreement of the seller and buyer.
As a practice or convention it is the buyer who pays the same.
The law on the subject is silent on primarily liability of payment for the same upon any particular party.
No
No, the seller (company) is not liable to pay stamp duty in Rajasthan.
🔹 As per Rajasthan Stamp Act and general practice, stamp duty is paid by the purchaser, unless agreed otherwise in the sale agreement.
🔹 The buyer is liable to pay stamp duty when property is transferred to their name via sale deed/registry.
🔹 The Revenue Department may issue general advisories, but statutory liability lies on the buyer unless specifically shifted by contract.
You can refer to Section 29 of the Rajasthan Stamp Act, 1998, which states the default rule:
“In the absence of an agreement to the contrary, the expense of providing the proper stamp shall be borne… in the case of a conveyance… by the grantee (i.e., the buyer).”
- The buyer is liable to pay stamp duty and not the seller
- There is no circular for the same.
Dear Client,
As per the Rajasthan Stamp Act, 1998, and common practice, the buyer is primarily responsible for paying stamp duty on a Sale Deed.
Section 32 (b) of the Rajasthan Stamp Act, 1998, specifically states that in the case of a conveyance (which includes a sale deed), the expense of providing the proper stamp shall be borne "by the grantee" (i.e., the buyer).
However, it also states, "In the absence of an agreement to the contrary..." This means if the buyer and seller mutually agree that the seller will bear part or all of the stamp duty, they can do so. But legally, the onus is on the buyer.
You are NOT the primary party and therefore you are NOT expected to pay the stamp duty on the Sale Deed in Rajasthan being a seller (Novle Realtech Pvt. Ltd.).
Majorly, the stamp duty and registration fees to have the property registered under his or her name is to be paid by the buyers.
Rajasthan Revenue Department is not wrong when declaring that this is a transaction that will be subject to stamp duty. What they are probably telling you (the seller) is that stamp duty will be payable on the instrument under which they are now executing it on behalf of your company, they are not really telling you that your company need pay it.
I hope this answer helps. In case of future queries, please feel free to contact us. Thank you.
