Applicability of POA, requirement of Regn & Stamp Duty
Amit Mehta
(Querist) 16 June 2010
This query is : Resolved
Hi,
A Partnership Firm having legit rights to develop a particular property wants to transfer these rights entirely to me and the same shall be documented in a JV Agreement. In order to keep documentation simple we plan to follow the below process:
1. Enter in JV Agreement (will not be Registered)
2. Partnership gives 'Irrevocable POA' to me with respect to managing day to day affairs of the company as sole executor with respect to the development of the Property without any say or control on part of the Partnership Firm.
3. Once development is done from my end using my funds and resources and abilities, i shall (as agreed in the JV Agreement) make a payout of the said amount from the Partnership Firm to my personal account.
4. Shall surrender the POA though it is automatically of no value anymore.
I NEED TO KNOW:
1. If an Irrevocable POA is enough to protect my investments of money and effort? (I do not want to create a seperate company, unless absolutely required)
2. If this POA needs to be registered? With whom and where?
3. Will i need to pay and Stamp Duty ? How will i ascertain how much to pay ?
THIS QUESTION PERTAINS TO MUMBAI, INDIA
adv. rajeev ( rajoo )
(Expert) 16 June 2010
If POA is executed in the name of third person it should be regd., stamp duty to be paid in accordance with state stamp act.
Amit Mehta
(Querist) 17 June 2010
Hi,
I needed to know if this POA is enough to protect my investments, from legal point of view or do i need to approach the documentation requirement in some other manner?
Regards and thanks
Surrender K Singal
(Expert) 18 June 2010
Your PoA through P/Deed would save the stamp duty on separate PoA provided you do not foresee any problem with the other partner; You may consider obtaining some collateral from the partners, as per your trust in them !
Amit Mehta
(Querist) 18 June 2010
Surrender Ji,
Appreciate your reply. Would certainly give a thought to that!
I was looking for something like this ..... a deviation of methodology if it saves considerably.
Regards and thanks
