Monday 20 October 2014

STAMP DUTY IS PAYABLE ON PURCHASE OF PROPERTY IN PUBLIC ACTION

Advocate S Selvakumar|Property advocates in Bangalore|Property lawyers in Bangalore

The Madras state supreme court has control that an instrument, whether or not a ‘certificate of sale’ or ‘sale deed’, issued in a very public auction of properties, was guilty with tax underneath Article eighteen scan with Article 23 of Schedule I to the Indian legislative act, 1899.
 
Nothing that there was an rising trend among purchasers of properties publicly auctions to hunt issue of Certificates of Sale instead of Deeds of Sale, the state supreme court recalled that in Shree Vijayalakshmi trust case [Shree Vijayalakshmi trust vs Sub-Registrar, Erode Dt. (2009 (5) CTC 15] the read that a certificate of sale didn't attract tax had found acceptance. however the question on whether or not tax was owed on a certificate of sale wasn't examined within the same case on a comparative analysis of all provisions of the Transfer of Property Act, 1882, the tax Act and therefore the Registration act, 1908, and problems with repugnancy and therefore the dominant impact of 1 act over the opposite, it had been control.

Analyzing the Transfer of Property Act, the Honorable state supreme court recalled that the Apex Court created it clear in Raghunath vs Kedar Nath [1969 (1) SCC 497] that the documents of that registration was necessary, fell at intervals the scope of Section forty nine of the Registration Act which if not registered, they weren't permissible as proof of any group action touching any stabile property comprised in this. 

Under the legislative act regardless of and Delaware hors provisions of the Registration act, a certificate of sale issued to a buyer of property sold  publicly auction, was needed to be sealed as per Article18 scan with Article23 if the acquisition cash exceeded Rs.100 of Schedule one of the legislative act. The provisions of the legislative act and therefore the Registration Act operated on parallel lines. 

Neither of them contains a non-abstante clause thus on exclude operation of the opposite. The choice given underneath the Registration Act to manufacturers of bound documents, to register them or not, was not to be construed as an exemption from payment of stamp duty. Therefore, the sole conclusion that might be drawn by a combined reading of the 3 Acts was that by no matter name the instrument was referred to as, it had been guilty with tax, it had been held.

In view of the higher than, the appliance was disposed of with a direction to the Official Liquidator to issue a certificate of sale or execute a sale deed in line with the selection of the auction buyer.


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