STAMP DUTY PAYABLE ON JOINT DEVELOPMENT AGREEMENT

         STAMP DUTY PAYABLE ON JOINTDEVELOPMENT AGREEMENT

Advocate Selvakumar | property advocates in Bangalore | advocates in Bangalore

The Government of Karnataka under Karnataka Act No.9 of 2009 has drawn out specific changes to the Karnataka Stamp Act, 1957 compelling from l" April, 2009. As per this Amendment Act and as far as article 5(t) thereof, stamp obligation chargeable for joint improvement assertions identifying with development or advancement or offer of steadfast property is at the rate of one rupee for each one hundred rupees or part thereof on the

1. Market estimation of the property

The assessed expense of development of proposed development or improvement or proposed advancement of the property as the case may be which is the topic of such exchange under the understanding as per the procurements of sec.28 of the Karnataka Stamp Act, 1957] or

3. On the thought of such exchange, whichever is higher?

It is the typical practice that when any proprietor goals to form his rural area into a condo complex, he would go into a joint improvement concurrence with his preferred designer. It is additionally the ordinary practice that when such joint advancement assentions are gone into, just the aggregate developed region and the unified offer of area would be shared between the landowner and the engineer at the concurred proportion. Not just this, at the season of execution of joint advancement assention it would be untimely and not achievable for the designer to assess the expense of development or the proposed development or improvement and sharing of square feet zone. Notwithstanding this truthful position, when joint advancement understandings are displayed for enrollment, a percentage of the sub-enlistment centers in Bangalore have been demanding specifying some figure as the proposed expense of development to land at the stamp obligation payable on enrollment of such a joint improvement assention or the same is alluded for valuation under sec.45-An or the record is appropriated. Therefore, there is no uniform framework embraced by the sub-enlistment centers in regards to stamp obligation on enrollment of joint improvement understandings.

To have a reasonable photo of the issue, Shri S.Selvakumar, Editor, Real Estate Reporter, brought up the matter with the Inspector General of Registration and Commissioner of Stamps under Right to Information Act,2005 and looked for elucidation on the point.

As the data outfitted by this power was not persuading, a claim was documented before the Appellate Authority under the Right to Information Act. The Inspector General of Registration and Commissioner of Stamps, as an investigative power, has passed the accompanying request on the subject vide his request No.RTI/239/09-10

"In the moment case, just agrarian area is given for improvement and there is no notice of expense of development or proposed development and so forth., or there is no thought for such exchange. Under these truths and circumstances and without particular case close by, stamp obligation is chargeable available estimation of the agrarian area which is esteemed to be the topic of exchange under the Joint Development Agreement."

Consequently, when a joint advancement assention is gone into by the landowner with the engineer to add to his horticultural area wherein no expense of development or proposed development is specified or there is no thought for such exchange, stamp obligation payable will be available estimation of such farming area and if the area being referred to is a changed over area, stamp obligation payable will be available quality for such changed over area and where there is a small amount of changed over area with income khata, stamp obligation is payable on square feet premise according to rules esteem settled by the Central Valuation Committee.