Afternoon D & C Dedicated To Mumbai
Home > Property > Rules for stamp duty refund after cancellation

Rules for stamp duty refund after cancellation

Saturday, April 14, 2018
By Ramesh S. Prabhu

Q.If after I book a flat, give initial deposit and register the agreement, but afterwards want to cancel my booking, can I get my stamp duty and registration amount back? If yes, what is the procedure?
If the developer fails to give the possession of the flat and due to that reasons the agreement is cancelled and such facts are mentioned in the cancellation deed and if you register such cancellation deed within two years of registration of the original agreement, the purchaser of the flat will be entitled to claim refund of 98% of the stamp duty paid by making an application to the collector of stamps.  For refund, we have to make an application, with original registered agreement and also the original cancellation deed. The same will be processed by the department and 98% of the stamp duty will be credited to such purchaser bank account.  2% is retained by the government as the processing fees. The registration fees of Rs.30000/- paid will not be refunded by the department as they are fees for registering and preserving the records, and not the revenue of the department.

Q.Why is TDR building not preferred by potential purchasers?
TDR (Transfer of development rights) building is one where all the FSI ( floor space index) and TDR both are fully utilised as per the prevailing Development Control Rules. In case of TDR building, use of further FSI or TDR for near future is not possible, and redevelopment potential is also very less. Therefore, many flat purchasers do not prefer to purchase flats in the building which is constructed by using the TDR.

Q.Is consideration in fund allowed in sale building for purchase of land?
If there is no separate consideration paid for acquiring the development rights but only the constructed area is given to the land owner, the cost of the construction of the flat to be given to the land owner can be withdrawn from the RERA account in which 70% of the sale proceeds are deposited. Such withdrawal is nothing but part of the project cost to be appropriated towards the land cost and construction cost.

Q.What are the rights of associate memberswho are not joint purchasers in the agreement?
After the 97th constitutional amendment, the Maharashtra Co-operative Societies Act, 1960 has been amended to give voting rights to the person who is active member as provided in the registered bye-laws of the society. The model bye-laws approved for the co-operative housing societies by the commissioner in the year 2014 clearly indicates that only the person who has contributed towards the cost of the flat can be considered as active member and eligible to vote and contest the election. Therefore, the definition of the associate member also has been changed in the model bye-laws 2014, to state that only a person who is the joint owner of the flat can become the associate member. Therefore, post 2014, only the joint owner of the flat can become the associate member. If any person is admitted prior to 2014 as the associate member and his name is appearing in the share certificate, such member is allotted to vote and contest the election with the consent of the first member. Once such members are removed by the society by passing the resolution, if such members do not become the joint owners within a particular time, then such members cease to be the associate member and thereafter they cannot vote or contest the election.

Q.In equitable mortgage, what stamp duty is to be paid for holding the title deed?
In the case of equitable mortgage or for registered mortgage, the stamp duty is same. In the case of housing loan, there is a concession in the stamp duty which is 0.50% of the loan amount. It is same for mortgage by deposit of title deeds or for the registered mortgage.

(Ramesh S. Prabhu is Chairman, Maharashtra Societies Welfare Association)

No Comments Posted
My problem is that every time whenever there is a
Dr. Rajan B. Bhonsle, M.D. (Bom)
Consulting Sex Therapist & Counsellor
Dr. (Mrs.) Minnu R. Bhonsle, Ph.D.
Consulting Psychotherapist & Counsellor
Select Sun sign:
Aries (Mar 21 - Apr 20)
Aries (Mar 21 - Apr 20)You are likely to remain careful and watchful today, foretells Ganesha. And because you'll be invited to parties and other social events, your enthusiasm will remain buoyant. You will also strike the right balance between business and pleasure, says Ganesha.
- Advertising -
Technology has forever been at the forefront of e
Sun, sun and the setting sun was on tap for DKK’s
Discuss What’s Next in Digital Entertainment
Read More