02 October 2011
In 2009, I had booked a villa in a residential project and I had paid 20 % of the cost of villa to the builder. I was also supposed to register the land in my name during early 2010. However due to some financial constraints, I was unable to go ahead with the payment as I informed builder my intentions of not going ahead with the property investment. In the interim, I had requested the builder to prepare for registration of land in my name and hence had paid an advance cash of Rs 42,500 towards stamp duty. Upon cancellation of investment the builder has also handed over the stamp paper back to me. Now last month I purchased an apartment and have made full payment towards the same. The property is due for registration in my name by 3rd week of Oct. Can I still utilize the Rs 42,500 stamp paper that was bought for the old property?
02 October 2011
Yes, you can very well make use of the unused Stamp Paper purchased earlier, for the present purchase - provided the Stamp paper was earlier purchased in your name (you can see on the reverse side of the stamp paper as to in whose name the stamp paper had been purchased.)
04 October 2011
I have heard that stamp paper must be used within 6 months from the date of purchase. Since I do not practice in Civil matters so I am not sure but however Please verify it with the Collector's office.
According to a recent Supreme Court judgement dated 19/02/2008 in the case of Thiruvengada Pillai Vs. Navaneethammal and Anr. held that The Indian Stamp Act, 1899, nowhere prescribes any expiry date for use of a stamp paper. Section 54 merely provides that a person possessing a stamp paper for which he has no immediate use (which is not spoiled or rendered unfit or useless), can seek refund of the value thereof by surrendering such stamp paper to the Collector provided it was purchased within the period of six months next preceding the date on which it was so surrendered. The stipulation of the period of six months prescribed in Section 54 is only for the purpose of seeking refund of the value of the unused stamp paper, and not for use of the stamp paper. Section 54 does not require the person who has purchased a stamp paper, to use it within six months. Therefore, there is no impediment for a stamp paper purchased more than six months prior to the proposed date of execution, being used for a document.