4.7 Whoever bears and pays stamp duty is a matter of agreement between the parties. In the absence of such an agreement, the law provides that in the case of transport, the tax must be paid by the buyer and, in the case of a lease agreement, by the taker. In the case of obligations, unlocking, settlement, it is paid by the person who or the subscription of the instrument. In the event of an exchange, they must be paid equally by the parties and, in the event of division, by the parties in proportion to their respective shares. In all other cases, it must be paid by the person running the instrument. Thus, a construction contract is usually referred to an agreement by which a contractor is agreed with a contractor who undertakes to build a building for a fee. A contractor is usually a person who builds a structure either on his own land or on land, taking the rights of the owner to build or build a structure on it, so that at the end of the construction activity, the same construction activity can be sold profitably. In accordance with Section 2 of the Indian Contract Act, « any commitment and series of promises that take each other into account is an agreement. » The topics covered in this article are complex. Moreover, the concept of development agreements has not been subject to significant judicial review. Real estate laws have also been changed from time to time. The person concerned will therefore do well to refer to the legislation in this area and to be advised by an expert with regard to the legal situation of this case.
As noted above, the rules of the D.P. were adopted in 23-3-1991. Therefore, if the co-op itself receives the payment directly from the developer, the development agreement will generate long-term capital gains, since the period between the acquisition date and the transfer date exceeds three years. Description of the ownership document: the supplementary agreement covers any extension, modification or modification of certain clauses of the main agreement. Changes to the main agreement are often necessary, and only the possibility of executing the same agreement is an endorsement. Just check if an endorsement is executed against the main agreement. Why is this necessary: To avoid a future shock to amended clauses that you may not know and that are not included in property documents. Obligatory: Yes Required in the original: Not necessary for: Buying real estate If the owner retains his share of the built area, the construction agreements must be concluded with the developer and the same must be registered.
Stamp duty and registration fees would be 2% of construction costs, and this document must be registered with the Sub-Registry Office, which is responsible for locating the property. Sometimes there are special tax effects resulting from development agreements, because the payments the owner receives from the developer are spread over more than a year. In accordance with Article 45, paragraph 1, the profit resulting from the transfer of an asset is considered to be the result of the year in which the transfer takes place. It is therefore a matter of deciding when the transmission took place. In this context, attention is focused on Mumbai`s decision ITAT to SMT. Lalitha Ramaswamy vs. ITO 75 ITD 293 (Mom). This is why a contractor/developer enters the scene to advance funding, obtain various certificates of objection from government departments and build the building.