selling of factory building on a land not owned by the compa
srlaksminarasimman
(Querist) 17 July 2009
This query is : Resolved
Dear brothers,
Kindly clarify my follwing doubt.
A private limited company ( has got only two directors) has constructed its factory building on a land not owned by it.The said land was owned by the above mentioned two directors along with their three brothers.Now the company decided to sell the factory building to the land owners at the book value.Does this transaction attract stamp duty since no transfer of land is involved only factory building is transferred. The value of the factory building comes to Rs.22 lakhs
regards
sr laksminarasimman
Y V Vishweshwar Rao
(Expert) 24 July 2009
How the Buildign is constructed by the Company on individual persons land - there will be a Document authorising the Company to erect the Building it may by lease or licence/ agreement , the Conditions in the said Document to be cosnidered , to get a way out -i.e;- After 10 years of erection of building the Strutures on it shall belongs to the land owners -instead of payment of Rents etc, and company to mutate the buildign in the name of Land owners !
