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Amarjit Sethi (proprietor)     05 July 2013

Conveyance deed

Builder with development rights executes Agreement for sale with purchaser in Mumbai, society not formed. Document is not registered.First purchaser executes Assignment deed in favour of second purchaser in which firdt agreement is referred and  developer/builder endorses the Agreement and it is registered.Heavy stamp duty is paid.

At time of conveyance by land owner/lessee in favour of society which is since formed and developer/builder is confirming party,for purpose of adjudication for stamp duty ,will the credit of heavy stamp duty in second agreement referred above be avilable? 


 7 Replies

Hemang (Advocate)     05 July 2013

The terms of the agreement as Developer may have to be read. However, if the Developer is provided with a right to sell the property, he cannot evade the stamp duty. Generally what happens is that the land belongs to somebody else and with consent, the Developer develops. In agreement for development, the Developer guns on the solder of the Owner. And that is how he becomes the confirming party. But all such practices are impermissible. The issue needs an interpretation keeping in mind the Stamp Duty Act and the definition of conveyance under the Transfer of property Act.


Instead of peeping into the legal issue, make an application to the Superintendent of Stamps Duty and Valuation under the Right to Information Act. The Department would provide you with accurate information. 

niranjan (civil practice)     05 July 2013

Whoever executes sale deed has to pay stamp duty,but if in the agreement to sale,if consideration is mentioned and stamp duty acordingly paid,at the time oof sale deed,stamp duty paid at the time of agreement can be adjusted..

Amarjit Sethi (proprietor)     05 July 2013

The deed of assignment mentions consideration of second transaction.

I am told that when adjudicating for stamp duty on conveyance deed to socety  for entire property ,credit is given for stamp duty paid on first agreement with builder.I also understand it should be registered.

The first agreement for sale was not registered. 

We want  to take credit for the heavy stamp duty paid on the deed of assignment that is registered and in which builder's endorsement is there. 

We can pay a reasonable fee for way of doing so.

Separately   society may also use services for adjudication and egistration.

Amarjit Sethi (proprietor)     06 July 2013

Can you get the RTI applicatio  filed for me?What wouldbe fee?

Hemang (Advocate)     07 July 2013

Send me your full facts and the attachments of documents. My email ID is

Advocate Ravinder (Advocate/Attorney)     14 July 2013

I agree with Niranjan. 

Amarjit Sethi (proprietor)     15 July 2013

Thank you for your response.

The point at issue is adjudicating stamp duty on CONVEYANCE DEED of land (and building?) to regd CHSociety in Mumbai,giving credit of stamp duty already paid on the sale document for individual premises.

"A" ENTERED INTO AGREEMENT FOR SALE WITH DEVELOPER BUILDER but agreement was not registered.Small amount of stamps were affixed.
'A' executed ASSIGNMENT DEED in favour of 'B' in which developer builder has endorsed "WE HAVE NOTED THE CONTENTS OF THE AGREEMENT  FOR TRANSFER - " This  is the first sale document registered  for the said premises (with developer/builder's endorsement therein). Substantial stamp duty has been paid on this.
We legitimately feel we should get credit for this when adjudicating stamp duty on Conveyance Deed. 
Our stand is as follows:


"As this is the first registered  sale document,  wherein builder is a party, transferring the premises and assigning the benefits of  AGREEMENT FOR SALE etc to the assignee therein,  the Superintendent of Stamps and Valuation is required  to take into account  stamp duty paid on this first registered  sale  document  when adjudicating  stamp duty on CONVEYANCE DEED"


We want this to be made into enquiry under RTI".




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