Sagar Kulkarni 27 August 2020

Stamp duty challan rate revision

Hello,

I am about to purchase a new flat, i just read a news that stamp duty has been reduced to 2%. I am already done with negotiation part with builder and gave him cheques as per previous rate 6%. Builder is saying challans are processed but since the news of 2% came out today, can these challans be revised? agreement is yet to be executed. am I eligible for this change? can i ask builder to revise the challans? How it would be?

please guide, thanks in advance.

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Quick Summary

A buyer in Maharashtra negotiated a flat purchase at a 6% stamp duty rate and has already issued cheques. However, news of a stamp duty reduction to 2% has emerged. The buyer is seeking guidance on whether the challans can be revised, if they are eligible for the new rate, and how to approach the builder for this change, especially since the sale agreement is yet to be executed. Advice suggests inquiring with the local Sub-Registrar or a lawyer, as stamp duty is state-specific, and clarifying whether the 2% rate applies to urban or rural areas.

3 Replies

Dr J C Vashista (Advocate) 27 August 2020

Originally posted by : Sagar Kulkarni
	Hello,I am about to purchase a new flat, i just read a news that stamp duty has been reduced to 2%. I am already done with negotiation part with builder and gave him cheques as per previous rate 6%. Builder is saying challans are processed but since the news of 2% came out today, can these challans be revised? agreement is yet to be executed. am I eligible for this change? can i ask builder to revise the challans? How it would be?please guide, thanks in advance.

@ Sagar Kulkarni,

Stamp duty is a state subject which differ from one state to another, hence local laws shall apply. It would be better to inquire from concerned Sub-Registrar / local document writer or a lawyer.

You have stated to have just negotiated consideration with builder which do not require any stamp duty.

However, if the builder / vendor / seller is executing and registering Sale Deed in your favour then only stamp duty is to be paid to government but not to the builder.

advsnt 1968 27 August 2020

It looks like a case in Maharashtra. In whose name the challan is purchased? In this case you should ask the Builder to get the earlier challan cancelled and get refund in favour of that person. Refund is online and complicated process and takes 4 to 6 months. Meantime you buy another challan in case of urgency.

Sagar Kulkarni 27 August 2020

Thanks for responses. yes the case is from maharashtra. Are u also able to advise if 2% is applicable for urban area? or is it only for rural area? What i understood is metro cities basically urban area will be applicable for 3% stamp duty and 2% for rural? pls correct me if I am wrong.