registration amount of property is less than stamp duty value

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  1. shobhitmiles

    shobhitmiles New Member

    I have below query.

    A property was booked by an investor in 2010.the value of property (residential) was ~45 lacs including stamp duty, registration, VAT etc.The investor has paid approx 50% of 45 by June 2013 to builder but there was no registration done nor there was any registered agreement.
    Now the investor wants to sell the property to someone (as on date) in some y amount which is greater than the circle rate of the property.The circle rate is also greater than the total value45'of property now.
    The registration amount of the property can be ~39 after deducting vat, stamp duty,registry,mseb etc.
    Now since the circle rate is greater then 45 lacs, the stamp duty will be levied on approx 50 lacs amount.
    So in short the registration amount is approx 39 and the stamp duty amount is little more than 50.
    In this case what is the implications on buyer and seller w.r.t to tax.
    Note that the new sale agreement is between the new buyer and builder and the investor as the consent party.( it's a tri party agreement) where in the builder will return the amount paid by investor and the new buyer will give the whole amount to builder through loan etc.
    Will the buyer now need to pay the tax on the difference amount of 50-39?
    Since the investor has paid some amount prior to april2013 ( the date when this rule came into effect), will the buyer still need to pay the tax. Can something be done in this case to avoid the taxation?
    What is the implications on seller?
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