ABC, an NRI, has appointed his brother-in-law, XYZ as his SPA holder with the power to execute the sale deed for sale of his apartment in Bangalore. The buyer's lawyer believes this transaction will attract stamp duty of 5% payable by the seller (ABC). Is the buyer's lawyer correct?
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There's no necessity for the seller to pay any stamp duty.
For adjudicating the SPA the registration charges is just ₹ 150.
Don't be carried away by false or incorrect information.
The buyer only has to pay the stamp duty for registering the sale deed in his favor.
NRI should have executed POA in favour of close family relative like parents or siblings
it would have attracted nominal stamp duty but if executed in favour of brother in law it would have to be stamped as conveyance and attract higher stamp duty
Since brother-in-law is not a blood relative, the POA attracts a stamp duty of 5% of the value of the property. Your buyer's Lawyer is correct.
No, it will not attract any special stamp duty for spa, only the regular stamp duty and registration fee for sale is enough.
Thanks
Yes stamp duty as well as registration will be applicable
Whether the property is sold by the vendor directly or through the power agent, the stamp duty for the sale transaction remains the same. The SPA needs to be properly executed and notarized (or attested by embassy abroad) abroad and adjudicated in India. May be the lawyer has mentioned the stamp duty payable on adjudication of the SPA.
- If the said SPA is dully notarized and attested from the consulate of India , then registration is not mandatory for executing the sale deed on behalf of ABC.
- Since, the said SPA is given to the non-blood related then it attracts stamp duty .
