Stamp duty on sale deeds: IGR issues clarifications

However,there was confusion over the sale agreements registered before April but the deeds executed after.

According to the notification,said Inspector General of Registrations and Stamps K Chockalingam,if proper stamp duty was paid on any sale agreement before April 1,2013,and if it had been registered,the final sale deed executed in pursuance of the original agreement would be charged only Rs 100 and not with the 1 per cent hike. “There was huge confusion over this issue and the notification clears the confusion,” he said.

As per the earlier notification,apart from the 5 per cent stamp duty,an additional 1 per cent was to be paid as LBT for registrations done after April 1,2013. The confusion started when people registered sale agreements before April 1 but made the sale deed after that.

The department has now stated that unless the sale agreement has been made by paying proper stamp duty and registration done before April 1,it will not be considered.

“If it is registered,the charge will only be Rs 100. The IGR,the urban development department and the non-judiciary department have issued clarifications with regard to it,” said Chockalingam.

The government had made a provision in the Maharashtra Municipal Corporation (MMC) Act to give 1 per cent of the stamp duty to the civic bodies of Nagpur,Pune,Thane,Pimpri-Chinchwad and Navi Mumbai to overcome any impact of LBT on their revenue. The corporations have been implementing LBT since April 1.

Accordingly,the urban development department issued a notification on March 13,directing the Department of Registration and Stamps to recover 1 per cent additional stamp duty on sale-deed-conveyance,gift and mortgage transactions with effect from April 1.