• Adjusting stamp duty paid during sale agreement registeration in sale deed registeration(Bangalore)

Hi ,
I bought a flat in Bengaluru,Myself and Builder entered into Sale Agreement and got it registered in Sub Registrar office after paying stamp duty of .001 percent of total sale consideration.
Thereafter, I applied for home loan and submitted sale agreement to bank based on which bank disbursed the total remaining amount.

Now , We need to go for Sale Deed registeration and builder is asking to bring original sale agreement to claim deduction of stamp duty amount already paid during sale agreement registeration but bank may not release original sale agreement as they have disbursed the amount based on that 

My queries wrt above are:
1.Why do we need to pay stamp duty again because registrar office will have records of registered sale agreement which can be retrieved on submitting photocopy of Sale agreement ?

2.Will original sale agreement along with terms and condition be valid if i pay full stamp duty during sale deed registeration not claiming deduction of .001 percent already paid ?

Looking forward to your expert opinion on above queries.
Asked 7 years ago in Property Law
Religion: Hindu

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14 Answers

1. You can produce the certified.copy of sale.agremeent with letter that original is with bank along with the receipt of duty given by the registrar needs.to be given for deductions.

2. Yes it will be valid and completely legal if you pay complete duty and take no deductions.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

1) sale deed confers title to property and stamp duty has to be paid on conveyance executed by builder in your name 

 

2)  An agreement to sell is the basic document on which a conveyance deed is drafted.. it records basic understanding between the parties and is binding on the parties 

3) sale deed supersedes agreement for sale 

Ajay Sethi
Advocate, Mumbai
99776 Answers
8145 Consultations

1. You can apply for certified true copy of registered sale agreement from the registrar office itself and submit that for claiming deduction. No need to submit original

2. Yes absolutely. Only thing you will be paying extra stamp duty on sale deed without claiming deduction for the duty already paid

3. I don't know why a separate sale deed is being made when there is already a registered sale agreement between you and builder. That is enough as a title document. 

Yusuf Rampurawala
Advocate, Mumbai
7899 Answers
79 Consultations

1) If you're going to registered sale deed in the same registrar office your flat sale deed. Then builder should not have any problem. If registrar is ok with your scenario and can understand for your flat already you have paid stamp duty .001 percent. 

 

2) If you pay full amount of stamp duty than also it is not going to make any difference in your sale deed. This is nothing to do with your agreement to sale and sale deed. Anyhow the stamp duty amount which you're going to pay to government.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

1.Visit the sub-registrars office where the Sale agreement was registered. Apply for the copy by paying the prescribed charges and enclose required documents. Obtain a ‘copy of the document’ from the concerned registrar office. Thereafter, certified copies used as substitute for the original.

2.Agreement of Sale is stamped with 0.1% stamp duty (in Karnataka) which is set off against the stamp duty you have to pay when you register the sale deed.

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

1. It's true that the SR Office has to be furnished with the original sale agreement to claim deduction of stamp duty paid @ the rate of 0.1% on the total sale consideration. SR Office will retain the original sale agreement after the buyer is given the benefit of claim. Based on Xerox copy of sale agreement the deduction of stamp duty can't be claimed.

2.  In case if you opt to pay the entire stamp duty at the time of registration of absolute sale deed, without claiming deduction, the sale agreement will be valid along with its terms and conditions, as set-out in the sale agreement.

Shashidhar S. Sastry
Advocate, Bangalore
5623 Answers
339 Consultations

  1. As per the information mentioned in the present query, makes it clear that you have paid some of the stamp duty at the time of registering the agreement to sale.
  2. Yes, you are absolutely right in saying that once you get the certified copy of the sale agreement from the registrar’s office then you may not have to go for the original one as the same has been submitted to the bank for he purpose of getting the loan amount.
  3. And once you have paid some some part of the stamp duty hen you should get it adjusted before the registrar as the time of executing and registering the sale deed.
  4. Going for again paying full stamp duty would be waste of your hard earned money.

Sanjay Baniwal
Advocate, South Delhi
5477 Answers
13 Consultations

1. No the earlier deed has to be submitted.

2. Yes if you do not want to take the deduction and want to pay the entire duty again then you may go ahead. 

Regards 

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

Hi,

1. To adjust stamp duty paid on the Sale Agreement at the time of Sale Deed registration, you need to produce original Sale Agreement (if you speak to the Bank Officers, they will arrange for the production of the original before the Sub-Registrar office)

2. Yes if you pay the entire Stamp Duty on the Sale Deed, the Sale Agreement still remain valid. But Sale Deed will supersede the terms and conditions mentioned in the Sale Agreement and Sale Deed will be your final ownership document.

Archana Shukla
Advocate, Bangalore
26 Answers
1 Consultation

Why do you want to pay stamp duty once again, when you have already paid .01% on the sale agreement, at the time of registration you will need to produce the Original sale agreement for denoting purposes, the bank representative will bring the Original sale agreement on the day of registration. It is not much of a hassle for the bank. You should demand them to bring the original sale agreement.

If they do not bring the document on the day of registration, you will have to pay full stamp duty, which is not illegal, but completely valid. Nor does the sale agreement become invalid or void because you paid full stamp duty.

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

Dear Sir,

My answers are as follows:

1.Why do we need to pay stamp duty again because registrar office will have records of registered sale agreement which can be retrieved on submitting photocopy of Sale agreement ?

Ans: You  can get certified copy of sale agreement to the builder to claim necessary relief.

2.Will original sale agreement along with terms and condition be valid if i pay full stamp duty during sale deed registeration not claiming deduction of .001 percent already paid ?

Ans: Yes.

Kishan Dutt Kalaskar
Advocate, Bangalore
6230 Answers
499 Consultations

1.  The registrar office will be having the details about the stamp duty paid if you produce the xerox copies of the sale agreement

 

2.  Original sale agreement will still be valid since it is a registered document

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

1. You have not paid the entire stamp durty required to be paid for registering the sale deed. The stamp duty you have paid while registering the agreement shall be deducted while collecting stamp duty from you during registration of sale deed. The Bank Manager can bring the said agreement and after the registration of the sale deed is over, he can take the original registered sale deed  or IGR along with him for creating mortgage on the said property purchased by you for which loan has been provided by the said Bank.

 

2. he terms and conditions mentioned in the sale agreement gets resulted in to the sale deed after complying with the said terms. However, the said terms and conditions of the said registered sale agreement will  continue to stay in force. The original agreement for sale will not be anded over to the builder at all. It can be brought by the bank for showing the the Registrar as an evidence for having paid the part of the required stamp duty for registering the sale deed. 

Krishna Kishore Ganguly
Advocate, Kolkata
27703 Answers
726 Consultations

Yes it is valid. Yes they will have registered copies with them

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

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