Official guidance, Tamil Nadu land law
D.Dis.No.15404/P1/2021-1, Appeal concerning Document No.6484/2010
The Chief Controlling Revenue Authority and Inspector General of Registration, Chennai, issued D.Dis.No.15404/P1/2021-1 dated 17 October 2024 concerning deficit stamp duty on sale deed Document No.6484/2010 registered at the Sub Registrar Office, Tiruvottriyur. The proceedings find that the stamp duty exemption granted to cooperative societies registered under the Tamil Nadu Cooperative Societies Act does not apply to Om Sakthi Kalikambal Multi-State Cooperative Housing Society Limited, which was registered under the Multi State Cooperative Societies Act, 2002.
What the proceedings cover
D.Dis.No.15404/P1/2021-1 dated 17 October 2024 records an appeal by Om Sakthi Kalikambal Multi-State Cooperative Housing Society Limited against the District Registrar, Chennai (North). The District Registrar had ordered recovery of Rs.50,592 as deficit stamp duty and penalty for a sale deed registered without stamp duty.
The proceedings concern Document No.6484/2010 at the Sub Registrar Office, Tiruvottriyur. The sale deed was executed on 16 August 2010 and transferred Plot No.35, measuring 510 square feet, in Om Sakthi Kalikambal Cooperative Nagar, Mathur Village, to the society.
Why stamp duty was demanded
The Sub Registrar registered the sale deed without collecting stamp duty, believing that the exemption under G.O.Ms.No.2179 dated 29 June 1966 also applied to societies registered under the Multi State Cooperative Societies Act, 2002.
The later audit and government clarification took a different view:
- The society was not registered or deemed registered under the Tamil Nadu Cooperative Societies Act, 1983.
- Government letter No.16495/J1/2012-5 dated 21 October 2013 clarified that the exemption did not apply to societies registered under the Multi State Cooperative Societies Act, 2002.
- That government letter superseded an earlier government letter dated 9 April 2009.
- The District Registrar consequently initiated recovery action and determined Rs.50,592 as deficit stamp duty and penalty.
Findings on the appeal
The Chief Controlling Revenue Authority and Inspector General of Registration rejected the society's argument that the 2013 clarification could not affect a document registered in 2010. Relying on a Madras High Court judgment dated 19 February 2024, the proceedings state that a clarification of an existing liability operates retrospectively.
The proceedings also rely on a Madras High Court judgment dated 12 August 2022 involving the same society. That judgment held that an exemption issued under the Tamil Nadu Cooperative Societies Act, 1983 applies only to societies registered under that State law, not to a multi-state cooperative society registered under the Central Act of 2002.
Who may be affected
The reasoning is relevant to multi-state cooperative societies claiming Tamil Nadu stamp duty exemptions intended for societies registered under the Tamil Nadu Cooperative Societies Act. It also matters to purchasers or owners checking whether an older deed registered without stamp duty may later face deficit stamp duty recovery.
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Common questions
Which property and document are covered by these proceedings?
The proceedings cover sale deed Document No.6484/2010 registered at the Sub Registrar Office, Tiruvottriyur. It concerns Plot No.35, measuring 510 square feet, in Om Sakthi Kalikambal Cooperative Nagar, Mathur Village.
How much deficit stamp duty and penalty was determined?
The District Registrar, Chennai (North), determined Rs.50,592 as deficit stamp duty and penalty.
Can a society registered under the Multi State Cooperative Societies Act, 2002 claim this Tamil Nadu exemption?
No. The proceedings find that the exemption under G.O.Ms.No.2179 dated 29 June 1966 applies to societies registered under the Tamil Nadu cooperative societies law, not to societies registered under the Multi State Cooperative Societies Act, 2002.
Did registration of the deed before the 2013 clarification prevent recovery?
No. The Chief Controlling Revenue Authority and Inspector General of Registration found that the 2013 letter clarified an existing liability and relied on a Madras High Court judgment stating that such a clarification operates retrospectively.
