Contribution by the members of the society for conveyance deed of the society
Sriram
(Querist) 27 November 2011
This query is : Resolved
Hi, I am staying in a appartment at Thane and very recently the Consumer Forum Judge passed an order in favour of the Society against the builder and have asked him to complete the conveyance formalities in next seven days.
As i understand from the Advocate appointed by the Soceity, he informed that the Members of the Society have to bear the expenses for getting the property transferred in the society name. He has informed us the approx amount invoved for Stamp Duty and Registration of the land in the Soceity's favour.
Our society has flats of four different areas i.e. 605sft, 880sft, 620sft and 610 sft. The Municipal tax for these flats are paid by individual owners of the flats since the inception of the soceity.
Now for the conveyance registration the Advocate has adviced the Secratary of the Society to collect the contribution based on the SFT area of their flat.
My question is, since it is a land conveyance, why should the contribution be based on the flat SFT, As such the individual flat owners have already paid for the stamp duty and registration of their individual flats and the conveyance is related to the complete building and all the members and hence it should be i feel it should be the area of conveyance divided by the number of Flats?
Can some one guide and let me know the correct contribution?
Since the matter is URGENT it would be highly appreciated if i get an answer in a day or two.
Regards,
Sriram Vishwanath
Raj Kumar Makkad
(Expert) 27 November 2011
Sriram ji! You need not wait for a day or 2. Reply for you is ready.
In the given matter, the builder has failed to get the conveyance deed executed in favour of society giving ownership rights to it so society requires funds for the registration of this deed which is mandatory to be done. The allocation of the expenses as per area is good and acceptable way to collect the desired amount.
Sriram
(Querist) 28 November 2011
But the conveyance is for the common land of the society. All the flat members in the building have already paid up for the stamp duty and registration of their individual flats.
Ideally would it not be correct to take the contribution based on the number of members of the society?
I am still not able to connect to the Logic of charging based on the per sq.ft of individual flat.
Can you please explain me the logic?
M V Gupta
(Expert) 28 November 2011
The query needs to be answered with reference to the BombnayStamp Act, 1958. Article 25 (d) is relevant. Under that Article the stamp duty will be first assessed by the stamp authorities at the rate of 5% of the current market value of the property i.e., land and building, and the stamp duty already paid by the flat owners on their respective Agreements for sale will be deducted and the balance only will be collected.(Pl see the last proviso to clause D of that Article.) To know the correct duty payable the document may be submitted for adjudication of stamp duty to the Regisrar. The amount to be so paid by the Society should be contributed by the flat owners on the bais of the built up area of their flats.
Sriram
(Querist) 29 November 2011
Thanks for the information and i accept this logic. Being the Chariman of the Society this will help me to explain the same to the members of the society, who were under the impression that the contribution needs to be made only towards the land as the stamp duty and registration for the flats were already paid.
