Property Registration for Circle rate but less than the Sale Agreement Value
This query is : Resolved
17 July 2023
Dear Sir,
Person A has booked a property with builder for 82 L but did not register post possession. Now A wants to sell it to B for 1.6Cr. Since the property was not register there will be a tri-party agreement (between A, B and Builder) to transfer the property from A to B.
Builder will only register it to B for 82 L which is original price equal to circle rate.
A will get 1.6Cr all in white (less TDS 23.33 % since A is NRI) from B.
is it legal? will there be aby scrutiny by IT dept on the balance 1.6cr-82L for loss of revenue?
Please confirm.
Person A has booked a property with builder for 82 L but did not register post possession. Now A wants to sell it to B for 1.6Cr. Since the property was not register there will be a tri-party agreement (between A, B and Builder) to transfer the property from A to B.
Builder will only register it to B for 82 L which is original price equal to circle rate.
A will get 1.6Cr all in white (less TDS 23.33 % since A is NRI) from B.
is it legal? will there be aby scrutiny by IT dept on the balance 1.6cr-82L for loss of revenue?
Please confirm.
17 July 2023
Invites litigation from IT dept and Sub Registrar.
17 July 2023
Thanks Sir, but there has been numerous cases of sales like this in Karnataka and there has not been any issue to anyone, how is that possible.
The Tri-party agreement b/w A, B and builder will is kind of re-assignment of the property from A to B which will state that A bought it for 82L and further selling it to B for 1.6 Cr.
Builder will register it for 82 L to B with no mention of A or the agreement.
The Tri-party agreement b/w A, B and builder will is kind of re-assignment of the property from A to B which will state that A bought it for 82L and further selling it to B for 1.6 Cr.
Builder will register it for 82 L to B with no mention of A or the agreement.
17 July 2023
In such a case A has to pay capital gains tax on 1.6cr less 82L.
17 July 2023
He is ready to pay but will there be any liability on the buyer on why he agreed for less value of sales to evade the stamp duty
17 July 2023
In case of income tax scrutiny it will be a problem
18 July 2023
Thank you sir, I have got more details on the case. There are two agreements b/w builder and person A, Sale agreement and Construction agreement. when person A sells to B, there will again be two tri-party agreements stating the transfer of the assignee from A to B. Based on these two agreements builder will do the registry to B only on the land price (circle rates) not considering the construction cost.
In this case will there be any IT issue for buyer B? Also any issue for further sale later on?
In this case will there be any IT issue for buyer B? Also any issue for further sale later on?
18 July 2023
IT issue on A getting 1.6cr .
18% GST on construction cost.
My suggestion is.
Let A get document registered for 82L.
And then B get document registered from A for 1.6cr.
In this stamp duty fully paid.
A will be paying capital gains tax.
No problem from income tax or from registration people
18% GST on construction cost.
My suggestion is.
Let A get document registered for 82L.
And then B get document registered from A for 1.6cr.
In this stamp duty fully paid.
A will be paying capital gains tax.
No problem from income tax or from registration people
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Is this income indian or foreign income?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- TDS U/S. 194NF
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Donation Receipt u/s 80G
- RCM INVOICING FROM NOV-2024
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
CAclubindia
