Stamp duty on Cancellation Deed
Arati Gawde
(Querist) 24 November 2010
This query is : Resolved
My friend entered with an agreement for Sale, for transfer of immovable property .(He is vendor). Period of the complementation final transaction is end. Now for some reason both the party want to cancel the transaction. Then on this 'Cancellation Deed' how much stamp duty require to pay? Is it same which pay at the time of Agreement for Sale i.e 6%..
R.Ramachandran
(Expert) 25 November 2010
Dear Arati,
Agreement for Sale would not attract 6% stamp duty - Unless what you say is SALE DEED (not Agreement for Sale).
If Sale Deed has been executed and registered, then the same cannot be cancelled. The purchaser has to re-transfer the property to the original seller. This will definitely involve the stamp duty of 6% (or whatever rate) on the whole consideration.
If the Agreement to Sale is to be cancelled, it can be cancelled by another Agreement on which nominal Stamp duty would apply.
Kirti Kar Tripathi
(Expert) 25 November 2010
i completely agree with mr. Ramchabdran. in case, sale has been completed, it can not be cancelled by the same parties through a deed. it can be cancelled bu the court only on the grounds mentioned in the contract act. cancellation of sale deed by the parties between the sale deed will amounts to resale and for that purpose the required stamp duty shall be paid. in case, it is agreement to sale , it can be cancelled by another agreement on payment of normal stamp duty.
