STAMP DUTY

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babita Matta (Querist)
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15 January 2011 PLS MAKE A SOLUTION :-

a COMPANY "A" HAS 3 SHAREHOLDERS NAMELY , FATHER(Mr.X) (25%),HIS SON(25%)(MR.Y) AND MR. Z(50%)AND IT HAS ONE LAND OF 3 acres and another COMPANY "B" HAS 2 SHAREHOLDERS SAME AS THAT OF COMPANY "A" i.e a father (MR.X) and a son (Mr. Y) having Equal shareholding i.e 50% and this company has 2 acres land.
NOW MR. Z WANTS TO PURCHASE THE LAND 1 acre from COMPANY A AND HALF ACRE FROM B AND STAMP DUTY APPLIES RS. 10 LACS. IS THERE ANY CLAUSE OR PROCEDURE THROUGH WHICH THIS 10 LACS CAN BE SAVED.
THE LAND (5 acres) IS SAME IN BOTH THE COMPANIES ONLY FOR ACCOUNTING PURPOSE IT IS TAKEN SEPARATELY i.e 3 acres and 2 acres

CA.Tarun Maheshwari

CA.Tarun Maheshwari (Expert)
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15 January 2011 I could not understand the last lines that the land is same in both the companies and only for accounting purpose it is taken separately. In that case also, registry must have been done separately in the names of companies and the parts of land to be treated separate from each other. Anyways, the best way to save the stamp duty is that the share value should be revalued taking into consideration the property in the company, and then the buyer can purchase the shares of the company to the extent of value of property. In this case, company will remain the owner, but the buyer will become the shareholder and later on he can transfer/sell the shares to anybody else who want to purchase the property.