niketan (sales manager) 06 September 2011

Bombay stamp act article 5(g-a)(ii) stamp duty for investors

As per article 5(g-a)(ii) of schedule 1 of the Bombay stamp duty act.1958.
If relating to the purchase of one or more units in any scheme or project by an person, from a developer, who subsequently sells the unit, the duty chargeable for each unit under this clause shall be adjusted against the duty chargeable under article 25(conveyance) after keeping the balance of one hundred rupees, if such transfer or assignment is made within a period of three years from the date of the agreement. If on adjustment, no duty is required to paid, then the minimum duty for the conveyance shall be rupees one hundred.
Explanation : for the purpose of this clause, the unit shall include a flat, apartment, block or any other unit by whatever name called, as approved by the competent authority in the building plan.

Question: What does this clause exactly mean?

Can anyone elaborate in simple words?

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2 Replies

mangesh 29 August 2018

Dear All,

Agreement-1:- My Investor has purchased Flat from Developer/Builder @ Rs. 35,00,000 in 04/2012 and paid stamp duty of Rs. 192600/-

Agreement-2: Now I have purchased same Flat from Investor @ Rs. 33,50, 000/- in 05/2012 paying stamp duty of Rs. 1000 only.

My question to you is:-

What is the calculation for stamp duty set-off? Is there any % limit on adjustment?

( For Example if my investor has paid duty 5.5% on total agreement-1 value then the set off under article 5 of Schedule 1 is taken for max 5.5% or less for Agreement -2.}

Is Paid Stamp duty of Rs. 1000 correct on sale agreement-2 ( between me & investor)?

(I wanted to know the adjustment done to get set-off on stamp duty by us under article 5 of Schedule 1 by paying Rs. 1000 only is correct and No more stamp duty was supposed to pay for agrrement-2)

I am sorry that I am asking this question after 6 years as our lawyer ( who is doing conveyance deed of our society) informed me that we have made error in stamp duty adjustment and was supposed to pay more stamp duty amount than Rs. 1000.

Thanks & regards,

Mangesh