M Subramanian (Manager ) 14 November 2010

Stamp duty - karnataka set off

I am applying for a Home loan and as a process they have asked me to get the Sales agreement registered by paying the relevant stamp duty (Karnataka). When I queried the concerned if I would be required to pay the same stamp duty again when I get the Sale Deed executed after completion of the flat, he opined that I need not do so as I can show the proof of the payment made initially and adjust it against the total Duty/Fees that I would need to pay while registering the flat.

would like to know if the above suggestion of set off against final duty / Fees due is acceptable practice in Karnataka / Pan India or will I be asked to pay again the relevant stamp duty at the time of getting the flat registered upon getting the sale deed. Pl. advise.

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3 Replies

RENISH RAO (ADVOCATE) 15 November 2010

Dear Mr. Subramanian,

In reference to your query, pls. refere Section - 4 of The Karnataka Stamp Act, 1957. whereby it is clearly mentioned that... where, in the case of any sale, mortgage or settlement, several instruments are employed for completing the transaction, the Principal Instrument only shall be chargeable with duty prescribed in the Schedule for the conveyance,..... etc....... and each of the other instruments shall be chargeable with the duty of ONE HUNDRED rupees instead of the duty (if any) prescribed for it in the Schedule.

Also refere subsection - 2 and 3 of section 4 of the same Act to determine yourself for which of the instrument so employed shall for the purpose be deemed to be the Prinicpal Instrument in your transaction.

Hope this will suffice to resolve your query

Regards,

Renish Rao, (Advocate)

Ahmedabad, Gujarat

suresh (Advocate) 15 November 2010

Dear Mr.Subramanian,

According to the act any agreement if you are showing the consideration you need pay One rupee for every one hundered rupees (that means 1% of the sale consideration)or subject to a maximum of Rs.20,000/- as stamp duty.

When you are registering the property by way of sale deed, the amount paid as stamp duty for the registering the agreement will be denoted.

regards

suresh

Kumar Abhinav (Senior Engineer) 22 January 2011

I have a similar query.

I paid 1% stamp duty while registering the Sale Agreement. I paid it by giving a DD in the name of Sub-Registrar.

I have 2 questions:

1. Is this duty refundable?

2. Is it coupled with Sale Agreement? what if both buyer & seller (same as previous) have to enter into new Sale Agreement for the same property. Does the buyer needs to pay the duty again?