Today, the Hon’ble Madras High Court refused to stay the operation of GO (Ms) No. 131 dt. 01.12.2023 issued by the Commercial Taxes and Registration Department while hearing the Writ Petition filed by the Confederation of Real Estate Developer’s Association of India alongwith other
[12/20, 21:13] sekarreporter1: Today, the Hon’ble Madras High Court refused to stay the operation of GO (Ms) No. 131 dt. 01.12.2023 issued by the Commercial Taxes and Registration Department while hearing the Writ Petition filed by the Confederation of Real Estate Developer’s Association of India alongwith other builders assailing the aforesaid G.O, after hearing the arguments of Mr. P. Wilson, Senior Advocate arguing for the State of Tamil Nadu & Inspector General, Registration.
The Government of Tamil Nadu issued G.O. (Ms) No. 131 dt. 01.12.2023 instructing the Inspector General of Registration to collect the stamp duty and registration fee on the composite value of the flats/apartments including both the undivided share of land and building put together. Furthermore, the GO also gave certain concessions in the Stamp Duty and Transfer Duty to be levied on the registration of documents.
Mr. A.R.L. Sundaresan and Mr. P.S. Raman, Senior Advocates appearing on behalf of the Petitioners had contended that G.O. (Ms) No. 131 was beyond the State Government’s power prescribed under section 9(1)(a) of The Indian Stamp Act and argued that the rate proposed in the G.O. was much higher than the present rate and will lead to an increase in the charges.
Mr. P Wilson, Senior Advocate appearing for The State of Tamil Nadu & Inspector General, Registration argued before the Hon’ble High Court that the G.O. (Ms) No. 131 is introduced to prevent evasion of stamp duty as the Builders/Developers/Promoters were developing the entire land into apartment premises but were executing the sale deeds only in respect of undivided share of land and not the building value, thus evading the stamp duty to be paid on the building as well. If the G.O. (Ms) No. 131 is stayed or any adverse orders are passed, it will result in a devastating loss to the State of Tamil Nadu amounting to Rs. 1000 Cr. p.a..
The Hon’ble High Court after recording the submissions of Mr. P Wilson, Senior Advocate issued notice and adjourned the matter to 11.01.2024 for filing counter affidavit but refused stay of the G.O.
[12/20, 21:13] sekarreporter1: Justice Velmurugan
