Indian Kanoon - Search engine for Indian Law

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where it exceeds Rs. 900/- but 

does not exceed Rs. 1000/-       .. Rs. 100/- 

and for every Rs. 500/- or part 

thereof in excess of Rs. 1000/- .. Rs. 50/-
 

Provided that the duty in respect of any instrument of Conveyance effected by the Bangalore Development Authority constituted under the Bangalore Development Authority Act, 1976 (Karnataka Act 12 of 1976), the City Improvement Trust Board, Mysore constituted under the City of Mysore Improvement Act, 1903 (Mysore Act 3 of 1903), the Karnataka Housing Board constituted under the Karnataka Housing Board Act, 1962 (Karnataka Act 10 of 1963), the Improvement Boards constituted under the Karnataka Improvement Boards Act, 1976 (Karnataka Act 11 of 1976), House Building Co-operative Societies registered under the Karnataka Co-operative Societies Act, 1959 (Karnataka Act 11 of 1959), in so far as it relates to allotment of building sites to its members and such other authorities as may be specified by the Government shall be payable at the rates specified above on the amount or value of consideration for such conveyance as set forth in the instrument.

(iv) Where applicants who fulfil certain eligibility conditions, are allotted sites by a Statutory Body or Society set up for a specific purpose, at cost price or at a subsidised/ concessional price, which is less than the market price, there may be undervaluation. Though the cost of allotment may be the true consideration or sale price, it will not be the prevailing market Value. Consequently, unless exempted, it will be considered as a case of undervaluation.

8. In the first category, there is an 'undervaluation' in the real and accepted sense, that is, a deliberate suppression of the consideration with an intention to evade stamp duty or taxes. In the second category, though there may not be any intentional suppression of the market price with the intention of evading stamp duty or tax, nevertheless, there may be an undervaluation, on determination of market value as specified in the Rules. In the third and fourth categories, the undervaluation is created by fiction of law. This is because 'sale price' or 'consideration' has ceased to be the basis for payment of stamp duty in the case of a conveyance. In its place, the 'market value of the property' has been made the basis for calculating the stamp duty payable. Article 20 in the Schedule which provides the stamp duty on instruments of conveyance, as it originally stood, provided that instruments of conveyance were chargeable to stamp duty at the rate specified on the 'amount or value of the consideration for such conveyance as set forth therein". The Karnataka Stamp (Amendment) Act, 1975 (Act 12 of 1975), amended Art. 20 by substituting the words "market value of the property which is the subject matter of conveyance" in place of the words "amount or value of the consideration for such conveyance as set forth therein". Thus, under Art. 20, the stamp duty is chargeable on the market value of the property and not the sale price. By the very same Amending Act, S. 45-A was also introduced, the explanation to which provides that the market value of a property shall be estimated to be the price which the property would fetch, if sold in the open market, on the date of execution of the instrument. Thus the stamp duty is payable on the market value of the property on the date of execution of sale and not on the consideration mentioned in the Instrument of conveyance.