1. Primary Responsibility of the Buyer
In most jurisdictions, including under Indian property law and state-specific regulations, the responsibility for paying stamp duty on the sale of industrial land lies with the buyer (purchaser). This legal obligation is typically specified in:
- The Sale Agreement or Agreement to Sell, and
- Relevant state stamp duty acts and registration rules.
The buyer must ensure that the correct amount of stamp duty is paid to make the sale deed legally enforceable and acceptable for registration.
2. Determined by Mutual Agreement (In Some Cases)
Although the default legal responsibility falls on the buyer, the parties involved in the transaction may mutually decide to share the stamp duty or agree for the seller to bear the cost, especially in high-value or negotiated deals. This arrangement must be documented clearly in:
- The sale agreement, or
- A separate cost-sharing agreement.
Such arrangements are valid as long as the total duty is fully paid at the time of execution and registration of the sale deed.
3. As Per State-Specific Laws and Guidelines
Stamp duty rates and the mode of payment vary from one state or union territory to another, depending on:
- Location (urban vs rural areas).
- Type of buyer (individual, company, or government body).
- Type of land (freehold, leasehold, industrial allotment, etc.).
Some industrial authorities or state governments may offer stamp duty rebates or concessions for certain categories of buyers, such as:
- Women entrepreneurs.
- MSMEs (Micro, Small and Medium Enterprises).
- Startups or export-oriented units.
Despite these concessions, the buyer remains responsible for initiating and completing the stamp duty process unless otherwise agreed in writing.
4. Role of the Registration Office in Stamp Duty Compliance
The Sub-Registrar’s Office or the E-stamping authority ensures that the full stamp duty has been paid before accepting the sale deed for registration. The sale deed is liable to be rejected or penalized if:
- Insufficient stamp duty is paid.
- There is under-valuation of the property.
- Payment proof is not furnished (e.g., e-stamp receipt, franking certificate).
Hence, the buyer must calculate and pay the correct duty before or at the time of execution of the final deed.
