D.Dis.No.15404/P1/2021-1, Multi State Cooperative Society Stamp Duty Appeal
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, issued proceedings D.Dis.No.15404/P1/2021-1 dated 17 October 2024, finding that a sale deed in favour of Om Sakthi Kalikambal Multi-State Co-Operative Housing Society Limited was not eligible for the stamp duty exemption granted to societies registered under the Tamil Nadu Cooperative Societies Act, 1983. The proceedings address an appeal against recovery of Rs.50,592 as deficit stamp duty and penalty, and note that the Government letter dated 21 October 2013, which denied the exemption to multi-state cooperative societies, superseded the earlier Government letter dated 9 April 2009.
What the proceedings cover
The proceedings D.Dis.No.15404/P1/2021-1 dated 17 October 2024 concern a stamp duty appeal filed by Om Sakthi Kalikambal Multi-State Co-Operative Housing Society Limited. The appeal challenged the District Registrar, Chennai (North), proceedings ordering recovery of Rs.50,592 as deficit stamp duty and penalty.
The transaction details recorded are:
- The document was a sale deed executed on 16 August 2010 and registered at the Sub Registrar Office, Tiruvottriyur.
- The property was Plot No.35 in Om Sakthi Kalikambal Cooperative Nagar, Mathur Village, measuring 510 square feet.
- The stated market value was Rs.6,32,400.
- No stamp duty was borne by the deed.
- The sellers acted through their power agent, Mr. S.V. Manickam, and the purchaser was Om Sakthi Kalikambal Multi-State Co-Operative Housing Society Limited.
The main table identifies the document as No.6484/2010, although the opening description of the recovery order refers to No.6484/2011.
Why the exemption was refused
The Chief Controlling Revenue Authority and Inspector General of Registration found that the stamp duty exemption under G.O.Ms.No.2179 dated 29 June 1966 did not apply to a cooperative society registered under the Multi State Cooperative Societies Act, 2002.
Key reasons recorded include:
- An audit found that the society was not registered, or deemed registered, under the Tamil Nadu Cooperative Societies Act, 1983.
- The Government letter dated 21 October 2013 clarified that the exemption was unavailable to societies registered under the Multi State Cooperative Societies Act, 2002.
- That 2013 Government letter superseded the earlier Government letter dated 9 April 2009.
- The Madras High Court had held that an exemption issued under the Tamil Nadu legislation applies only to societies registered under that State legislation, not to multi-state cooperative societies registered under the Central legislation.
Who may be affected
The reasoning affects multi-state cooperative societies relying on the Tamil Nadu cooperative society stamp duty exemption for property documents. Registering a document before the Government clarification dated 21 October 2013 was not accepted as a defence, because the proceedings treated that clarification as retrospective and explanatory of the existing position.
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Common questions
Was the society entitled to the Tamil Nadu cooperative society stamp duty exemption?
No. The proceedings find that a society registered under the Multi State Cooperative Societies Act, 2002 is not entitled to the exemption granted to societies registered under the Tamil Nadu Cooperative Societies Act, 1983.
How much deficit stamp duty and penalty was demanded?
The District Registrar, Chennai (North), determined deficit stamp duty and penalty of Rs.50,592.
Does registration before the Government letter dated 21 October 2013 protect the document from recovery?
No, according to these proceedings. They rely on a Madras High Court judgment stating that a clarification of existing provisions operates retrospectively.
Which property was involved in the appeal?
The appeal concerned Plot No.35 in Om Sakthi Kalikambal Cooperative Nagar, Mathur Village, measuring 510 square feet, with a stated market value of Rs.6,32,400.
