Rajesh Dhoka (owner) 11 October 2010

stamp duty invasion

I have purchased one flat in Mumbai, which was sold under SARAFAESI Act, 2002 by one of the Nationalised Bank.

I was not the direct bidder in the Auction process. The person who had won the auction has nominated me as a Transferee. Bank has also issued directly to me a "Sale Certificate" Under Section 13 of the SARAFAESI Act, 2002, Which is duly registered and paid stamp duty.

If we talk in a proper way, the first agreement should have happened between the bidder and Bank and than second agreement should have been between me & that bidder.

But agreement between the bank and that bidder never happened. Is it liable to pay stamp duty although on that?

Does it becomes the case of invasion of stamp duty ? if yes than under the law who is the invader of the stamp duty. Will I be the defaulter for non payment of stamp duty ?

For the purpose of my safety should I pay double stamp duty to avoid any future problem that may arise to me?

Kindly help me, Thanks in advance

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2 Replies

V. VASUDEVAN (LEGAL COUNSEL) 11 October 2010

There is no evasion! If the bidding process provides for the successful bidder, either to register the sale in his favour or to his nominees, it would be a proper transaction, from the stamp duty perspective. However, from taxation perspective, the consideration, any profit made by the bidder between his purchase and his sale to you

shold be shown and tax paid.

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Rajesh Dhoka (owner) 11 October 2010

Thank you sir, that is bidders concern..... my concern is to avoid any illegality on my part