Procedure for sale to be followed
Rajesh Kumar Agrawal
(Querist) 29 July 2017
This query is : Resolved
1) A Land is purchased and registered with the Registrar of Assurances in the name of A,B and C, in 2007.
2) The above Land was transferred in the name of a Company XYZ Pvt Ltd.,in which all A, B and C are the Directors, in FY 2009-2010
3) The Company issued Equity Shares to the Directors A, B and C in FY 2009-2010 on account of sale consideration of the Land. The Land was not registered with the Registrar of Assurances in the name of the Company at that time .
4) In FY 2010-2011, the Company erected a factory building on the above Land.
5) Land and Building, both are now reflected in the Books Of Accounts of XYZ Pvt Ltd., since FY 2010-2011.
6) Now, Can the Directors, (A, B and C) of the Company i.e., who happen to be the owners of the Land in the record of registrar of Assurances and state land revenue records, (as the land was registered in their name with Registrar of Assurances) NOMINATE the Company XYZ Pvt Ltd. to sell the land.
7) Building will be sold by the Company.
The obvious answer would be to pass a resolution and get the land registered in the name of the Company, but if this is done then in order to sell the land and building to a third party say P , these will have to be registered again by the Company (XYZ & Co Pvt Ltd), thereby incurring
-the cost of stamp duty and registration once for registering the land in the name of the Company, by the Directors
and again
- The cost of registration and stamp duty of land together with building when it is being registered by the Company for sale to a third party (P).
So, the Question IS HOW THE INCIDENCE OF COST OF REGISTRATION CHARGES AND STAMP DUTY BEING INCURRED TWICE FOR THE SAME PROPERTY BE AVOIDED AND COULD BE INCURRED ONLY ONCE . CAN THE DIRECTORS (A,B & C) NOMINATE THE COMPANY TO SELL THE LAND AND THE SALE DEED BE PREPARED ACCORDINGLY.
Your answer is eagerly awaited.
Thanks and regards
Rajesh Kumar Agarawal
kavksatyanarayana
(Expert) 31 July 2017
You posted a lengthy query but the place of property is not mentioned which is must to answer you. because the stamp duties are different from one State to another State.
Rajesh Kumar Agrawal
(Querist) 01 August 2017
Sir,
Thanx for the reply . The property is in West Bengal.
Rajesh Kumar Agrawal
(Querist) 01 August 2017
Sir,
Thanx for the reply . The property is in West Bengal.
Rajesh Kumar Agrawal
(Querist) 01 August 2017
Sir,
Thanx for the reply . The property is in West Bengal.
Rajendra K Goyal
(Expert) 07 August 2017
Registration is necessary in the name of Company if the property is acquired by the Company.
Get the property registered in the name of Company by executing sale deed.
