Paying Stamp Duty Is Compulsory During Property Registration
Oct 26, 2017 Legal Guidance
To encapsulate the transfer of the immovable property, the Stamp duty has to be paid compulsorily. This amount has to be paid at the time of registration of the property. Every state has its own stamp duty charges. For example, according to the Maharashtra Stamp Act, 1958, regulates the different rates of stamp duty payable on the various instruments of transfer of immovable property. The Stamp Duty payable is 7% of the transactional value or the ready reckoner value- if the transaction value is lower than the reckoner value.
Discounts offered
To promote their sales, the developers are offering Stamp Duty discounts by splitting the Stamp duty value equally among the buyer and the developer or they allow the buyer to pay the half of the stamp duty initially and the rest half later.
To address these discounts, make sure that whatever the developer is offering is mentioned clearly in the agreement. Also, at the time of registration, the buyer should make sure that the title of the house is clearly transferred to their name without any obligation for the future.
According to experts, the Stamp duty must be paid at the time of registration or immediately after. If the document is not properly stamped then it becomes impermissible as evidence in the court if any dispute occurs later.
For example, until the stamp duty along with the penalty is paid by the buyer, the document may be impounded by the authority under the Maharashtra Stamp Duty act, 1958. According to the law, it is the responsibility of the buyer to make sure that the document is adequately stamped by the authority.
Should a buyer accept the full waiver of the Stamp duty by the builder?
Normally, it is the buyer who has to pay the stamp duty but it can be paid by the seller as well. The rate of stamp duty depends on the nature of the assets and their sales consideration. If the seller is offering the buyer a full waiver of the stamp duty, a buyer can take it while making sure that the title of the property is in his name and there is no future obligation attached to it. The stamp duty is paid to get the title transferred to the buyer in a legal way.
It is emphasised that the stamp duty must the paid at the time of registration to get the title of the property transferred under the registration act, 1908. Without the registration, the transfer or the sale of the property is incomplete.
Discounts offered
To promote their sales, the developers are offering Stamp Duty discounts by splitting the Stamp duty value equally among the buyer and the developer or they allow the buyer to pay the half of the stamp duty initially and the rest half later.
To address these discounts, make sure that whatever the developer is offering is mentioned clearly in the agreement. Also, at the time of registration, the buyer should make sure that the title of the house is clearly transferred to their name without any obligation for the future.
According to experts, the Stamp duty must be paid at the time of registration or immediately after. If the document is not properly stamped then it becomes impermissible as evidence in the court if any dispute occurs later.
For example, until the stamp duty along with the penalty is paid by the buyer, the document may be impounded by the authority under the Maharashtra Stamp Duty act, 1958. According to the law, it is the responsibility of the buyer to make sure that the document is adequately stamped by the authority.
Should a buyer accept the full waiver of the Stamp duty by the builder?
Normally, it is the buyer who has to pay the stamp duty but it can be paid by the seller as well. The rate of stamp duty depends on the nature of the assets and their sales consideration. If the seller is offering the buyer a full waiver of the stamp duty, a buyer can take it while making sure that the title of the property is in his name and there is no future obligation attached to it. The stamp duty is paid to get the title transferred to the buyer in a legal way.
It is emphasised that the stamp duty must the paid at the time of registration to get the title of the property transferred under the registration act, 1908. Without the registration, the transfer or the sale of the property is incomplete.
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