Refund of stamp duty
Adv. Dipti Morajkar
(Querist) 22 December 2010
This query is : Resolved
Dear All,
If an Agreement to sale is entered into for a resale flat,by paying full stamp duty and the transaction is subsequently been canceled for the reason that the bank in which the purchaser was having loan account refused to disburse the sanctioned loan amount. Now if the aforesaid transaction is canceled, whether the purchaser is entitled for stamp duty refund? Further what is the amount of stamp duty required for the execution of Cancellation deed for the aforesaid transaction?
Raj Kumar Makkad
(Expert) 22 December 2010
No stamp duty is payable while executing the earlier registered agreement to sale.
Stamp duty/stamp papers which are unused due to reason the agreement has been cancelled, can be refunded to Govt. Treasury as per provisions of Stamps Act and nominal amount thereof shall be deducted as per rules.
s.subramanian
(Expert) 22 December 2010
Once the document is registered,you cannot claim any refund of stamp duty.
Devajyoti Barman
(Expert) 22 December 2010
ye I agree with them. Some protion of only the unused stamp can be refunded.
Adv. Dipti Morajkar
(Querist) 24 December 2010
1)As per section 47 & 48 of the Bombay stamp Act 1958, clause (c)(5)of Sec 47 if the document rendered ineffective and unenforceable in the sense that the purpose for which it was executed totally fails then the party is entitled for refund of stamp duty as per provisions of law, if application is made within prescribed time.
2)Further as per the provisions of section 48 of the aforesaid Act if the agreement is canceled by way of registered cancellation deed on the ground mentioned in that section then application can be made within 2 years from the date of such registered cancellation deed.
Therefore refund can be claimed and the transaction can be canceled by way of cancellation deed registered.
