Stamp duty for transfer of land by partners to firm

Lalith Kishore (Querist) 08 September 2018 This query is : Resolved
Certain Parties have initially acquired a piece of land and then formed a Partnership Firm, later on introduced the land into the Common Stock of the Partnership Firm by way of entries in the books of account and is being reflected in the Balance Sheet of the Partnerhship Firm since then.
The Bankers' legal panel insists that the property should be transferred in the name of the Firm and should appear in the EC as such.
Request for guidance, legal position and stamp duty in this regard. (State of Telangana)

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Isaac Gabriel (Expert) 09 September 2018
After all the property becomes an asset to the firm, it needs to be done by transfer.Regarding stamp duty refer to the value as per guideline or market rate.

K Rajasekharan (Expert) 09 September 2018
An individually acquired property is a self owned one by the person and that cannot be made into the common stock of a firm by just making some entries in the records of the firm, including the balance sheet.

To transfer the property to the firm it needs to be transferred by following the procedures prescribed under the Transfer of Property Act and registered under the Registration Act, for which the company will have to pay for the expenses towards stamp duty and registration charges.

Unless transfer is made to the firm, the property is the asset of the person holding it and anything done in the property will form part of the asset of the individual, but not of the company.