Lawstreet Journal

Should Stamp Duty Continue to be Payable Twice for Redevelopment Projects?– Bombay High Court to Decide, Appoints Amicus Curiae

Lawstreet Journal 17 Dec 2021 7:07pm

Image courtesy: Lawstreet Journal Judiciary Should Stamp Duty Continue to be Payable Twice for Redevelopment Projects?– Bombay High Court to Decide, Appoints Amicus Curiae

The Bombay High Court is set to decide the issue of whether separate stamp duty is payable on the instruments executed during redevelopment projects in Maharashtra with individual members, like on permanent alternate accommodation agreement (PAAA) [Adityaraj Builders v. State of Maharashtra and Ors.].

A Bench of Justices GS Patel and Madhav Jamdar framed the issue during the hearing of three writ petitions filed by Adityaraj Builders challenging the validity of two circulars dated June 23, 2015 and March 30, 2017 by the Inspector General of Registration and Controller of Stamps, Maharashtra State.

The circulars pertained to the payment of stamp duty on documents executed after the redevelopment of a property of a registered housing society is complete.

The circulars clarified about the stamp duty to be charged while giving premises in the new building for redevelopment project.

It stated that if a development agreement has been entered into between the society and the developer, the stamp duty is to be charged as per provisions of the Maharashtra Stamp Act.

Additionally, if there is a separate document transferring units to the individual members, those will be treated as independent documents and hence the stamp duty for the area approved for the society is to be charged against the construction cost.

The petitioner builder approached the Court as they had an estimated stamp duty liability of ₹27 lakh per petition on the PAAA and were required to submit at least 50 per cent of the amount with the department.

On the undertaking of depositing 50 per cent… Continue Reading...


Tagged: Bombay High Court  
Disclaimer: SoOLEGAL in Media collaboration with Lawstreet Journal. SoOLEGAL take no responsbility for the content provided by Lawstreet Journal. For any discrepancies Contact Lawstreet Journal.
Did you find this write up useful? YES 0 NO 0
Featured Members view all

×

C2RMTo Know More

Something Awesome Is In The Work

0

DAYS

0

HOURS

0

MINUTES

0

SECONDS

Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.
×

SAARTHTo Know More

Launching Soon : SAARTH, your complete client, case, practise & document management SAAS application with direct client chat feature.

If you want to know more give us a Call at :+91 98109 29455 or Mail info@soolegal.com