Trust - Author settling the property - Stamp duty?
Querist :
Anonymous
(Querist) 14 May 2011
This query is : Open
One of my clients created a public charitable trust settling a property he owned and he became one of the trustees along with some other trustees (None is his relatives). Art 54 of Karnataka reads as under:
A. Declaration-of Trust,
(i)Concerning any money or amount conveyed by the author to the trust as the corpus.
Rupees Five hundred
(ii) Concerning any immoveable property owned by the author and conveyed to the trust of which, the Author is the sole trustee.
Rupees Five hundred
(iii) Concerning any immoveable property owned by the author and conveyed to the trust of which, the Author is not a trustee or one of the trustees.
The same duty as conveyance Article 20(1) for the market value of the property conveyed.
I registered the trust interpreting the clause three above that since he is one of the trustees, stamp duty of five hundred is enough
Now there is departmental audit objection that stamp duty as applicable to any transfer would apply and hence the party has to pay the difference stamp duty which may come to some lakhs of rupees.
Can any body help me out with some solutions with suitable case law if any?
