Stamp Duty - Recovery / Additional Payment
Naveen Manghani
(Querist) 22 September 2009
This query is : Resolved
Dear Professionals,
Kindly enlighten on the following issues:
A Lease Deed for the property at Mumbai has been executed between the parties for 9 years. Suppose stamp duty of Rs. 1,80,000 has been paid by the Lessee on the same, taking into account the lease rent payable for the entire period of 9 years.
In this scenario, can the differential amount of stamp duty be recovered from the authorities in the following two circumstances:
(a) If after 1 year the Lease Deed is terminated, as the property has been used on leasehold basis only for 1 year, and not for 9 years as was expected at the time of stamping the lease deed.
(b) If after a period of 1 year, the lease rent is reduced for the remaining tenure of the lease by executing a Supplemental Agreement, as the total lease rent for the entire term of 9 years will be less than what was taken into consideration at the time of stamping the Lease Deed
Further, is it required to pay the additional stamp duty if the lease rent is increased over and above the lease rent covered in the Lease Deed; and whether such Supplemental Agreement increasing or decreasing the lease rent is required to be registered?
Thank you.
Regards,
Naveen Manghani
riven
Raj Kumar Makkad
(Expert) 22 September 2009
Supplementary agreement is also required to be registered. Stamp duty can be refunded in case the lease agreement is terminated after 1 years or the lease rate has been decreased. It requires additional stamp duty to be paid if lease amount is increased but in all such situations, the supplementary agreement is required to be registered and application is to be moved to the registrar for refund as per existing provisions of Stamp Duty as well as Registration Act.riven
joyce
(Expert) 22 September 2009
Are thier any conditions drawn in the leese deed, about the said subject, that also should be known.Lees deed agreements n conditions are vital.riven
Naveen Manghani
(Querist) 24 September 2009
Thanks for your views. Can you suggest the procedure, documents required and format of application etc. required for claiming the refund of stamp duty paid in such cases. Also kindly suggest to whom this application is to be made.riven
