|
I.
APPLICABILITY
The Bombay Stamp Act applies to the entire State of Maharashtra. Only the
instruments specified in the Schedule I to the Act are covered by this Act. All other
instruments are either chargeable under the Indian Stamp Act (e.g., transfer of
shares) or are not chargeable at all (i.e., if they are not specified under the Act
as well as under the Indian Stamp Act).
II. CHARGE OF STAMP
DUTY
2.1 It is very important to note that stamp
duty is on an instrument and not on a transaction.
2.2 S. 3 of the Act levies stamp duty at the
rate provided in Schedule I on any instrument executed in the State. Even instruments
executed outside the State are liable to duty only on their receipt in the State,
provided it relates to a property situated in the State or a matter or thing to be
done in the State.
2.3 An instrument covering or relating to
several distinct matters is chargeable with the aggregate amount of duty with which
each separate instrument would have been chargeable.
2.4 In case an instrument is so drafted that
it is covered within the ambit of more than one Article under Schedule I, then it
shall be taxed by that Article which levies the highest amount of stamp duty.
2.5 The term “Instrument” has been
defined to include every document by which any right or liability is or purports to
be created, transferred, limited, extended, extinguished or recorded.
However, it does not include a bill of exchange, cheque, promissory note, bill of
lading, letter of credit, policy of insurance, transfer of share, debenture, proxy
and receipt.
III. CERTAIN DEFINITIONS
3.1 “Conveyance” has been defined
to include:
-
a conveyance on
sale,
-
every instrument,
-
every decree or
final order of any Civil Court,
-
every order made by the
High Court u/s. 394 of the Companies Act, 1956 in respect of amalgamation of
companies; by which property, whether movable or immovable or any estate or interest
in any property is transferred to, or vested in any other person inter vivos
and which is not otherwise specifically provided for by Schedule I.
The Explanation to the definition provides that any instrument by which one
co-owner transfers his property to another co-owner would be deemed to be a
conveyance provided that it is not an instrument of partition.
3.2 “Instrument of gift” has been
defined to include, in case of an oral gift any instrument recording its making or
acceptance, whether by way of declaration or otherwise.
3.3 “Instrument of partition” means any
instrument whereby co-owners of any property divide or agree to divide such property
and includes:
-
any final order
for effecting a partition passed by any revenue authority or any civil court,
-
an award by an
arbitration directing a partition, and
-
when any partition
is effected without executing any such instrument, any instrument or instruments
signed by the co-owners and recording, whether by way of declaration of such
partition or otherwise, the terms of such partition amongst the co-owners.
The expression 'co-owners' includes all kinds of co-ownership such as joint
tenancy, tenancy in common, coparcenary, membership of HUF, etc. and the
partnership.
3.4 “Immovable Property” includes
land, benefits to arise out of land and things attached to the earth or permanently
fastened to anything attached to the earth. The two leading decisions on this
definition are those of the Supreme Court in the case of Sirpur Paper Mills
(1998) 1 SCC 400 and the case of Duncan’s Industries (2000) 1 SCC
633.
IV. PAYMENT OF STAMP DUTY
4.1 S. 17 of the Act provides that all
instruments chargeable with duty and executed in Maharshtra should be stamped
before or at the time of execution or immediately thereafter or on the next
working day following the date of execution.
4.2 Instrument executed only out of Maharashtra may be stamped within three months after it is first received in India.
4.3 Duty can be paid by way of adhesive or
impressed stamps on the instruments. Adhesive Stamps affixed should be cancelled at
the time of execution so that they are not available for reuse.
4.4 Further, s. 14 prohibits writing of a
second instrument chargeable with duty on a stamp paper on which an instrument
chargeable with duty has already been written.
4.5 The stamp papers must be in the name of
one of the parties to the transaction. They cannot be in the name of the Chartered
Accountant or Lawyer of the parties.
4.6 The date of issue of the stamp paper must
not be more than 6 months older than the date of the transaction.
4.7 Who bears and pays the stamp duty is a
matter of agreement between the parties. In the absence of any such agreement, the
Act provides that in the case of a Conveyance, duty is to be paid by a buyer and by
the lessee in case of a lease. In cases of Bonds, Release, Settlement, it is to be
paid by the person making or drawing the instrument. In case of exchange, it is to be
paid by the parties in equal shares and in case of partition, by the parties in
proportion to their respective shares. In all other cases, it is to be paid by the
person executing the instrument.
4.8 Stamp duty is payable at rates mentioned
in Schedule I. Depending upon the Instrument, it may be based upon the Market Value,
Area, or various other criterion. In case of instruments which are based upon Market
Value of the property, the term in relation to any property which is the subject
matter of an instrument, means the price which such property would have fetched if
sold in open market on date of execution of such instrument or consideration stated
in the instrument whichever is higher.
The stamp office determines the market value of the property by referring to an
Annual Statement of Rates (commonly known as Stamp Duty Ready Reckoner) which gave
the Market Values of various immovable properties in Mumbai. The Reckoner divides the
immovable property into various categories such as developed land, undeveloped land,
residential units, industrial units/office, shops, etc., and fixes their market value
accordingly.
4.9 Any person can apply to the Collector of
Stamps for adjudication of the stamp duty payable on the instrument who shall
determine the duty, if any with which the instrument shall be chargeable. It may be
noted that now adjudication is compulsory in all cases where an instrument requires
registration as the Registrar of Sub-Assurances insists upon the same. The instrument
should be brought to the Collector within 1 month of execution of such
instrument in the State and within 3 months from date of receipt of such
instrument in the State.
V. UNDERSTAMPED DOCUMENT
5.1 Under s. 34 of the Act, any instrument
which is inadequately/not stamped, then it shall be inadmissible in evidence for any
purpose, e.g., in a Civil Court. Such instruments can be admissible in evidence on
payment of the requisite amount of duty and a penalty @ 2% per month on the deficient
amount of duty calculated from the date of execution. However, the maximum penalty
cannot exceed twice the amount of duty involved.
5.2 Further, any public officer can impound
such improperly stamped instruments if it comes to his notice. Such impounded
instruments must be sent to the Collector who would then determine the amount of duty
and penalty, if any, payable on the same. Any party to an instrument can also
suomotu submit an instrument for adjudication by the Collector u/s. 31.
5.3 A person can be punished with rigorous
imprisonment for up to 6 months (not less than 1 month) and with fine
up to ` 5,000, if it is proved that the instrument was undervalued or short payment
of duty was made with intention to evade duty.
SCHEDULE I RATES (IMPORTANT ARTICLES)
MAHARASHTRA
|
Article
|
Description of Instrument
|
Stamp Duty
|
|
4
|
Affidavit
(Exemption: for use in the Court or Tribunal)
|
` 100
|
|
5
|
Agreement
|
|
|
(c)
|
relating to shares & securities
|
0.005% of the value of security
|
|
(e)
|
relating to purchase or sale of bullion
|
0.005% of the value of gold/silver
|
|
(g-a)(i)
|
Development Rights Agreement
|
Same as in the case of a Conveyance as on the market value
|
|
(g-a)(ii)
|
relating to purchase of units in any scheme by an investor from a developer
– when the investor sells the unit a set off of the duty paid would be
allowed against duty on Conveyance under Art.25
|
Same as in the case of a Conveyance as on the market value
|
|
(g-d)
|
relating to transfer of tenancy rights for residential property in:
|
|
|
|
i) Greater Bombay
having area up to 300 sq. ft.
having area above 300 sq. ft.
|
` 200
Same duty as on a Conveyance on the market value
|
|
|
ii) Thane, Pune, Nagpur, Navi Mumbai
having area up to 300 sq. ft.
having area above 300 sq. ft.
|
` 200
Same duty as on a Conveyance on the market value
|
|
|
iii) Other Municipal Corporations
having area up to 300 sq. ft.
having area above 300 sq. ft.
|
` 200
Same duty as on a Conveyance on the market value
|
|
|
relating to transfer of tenancy rights for non-residential property in the
above locations for any area
|
Same duty as on a Conveyance on the market value
|
|
(g-e)
|
relating to hire purchase
|
Same duty as on a Lease
|
|
(h) (i)
|
relating to certain advertising contracts
|
` 2.5 for every ` 1,000 (approx. 0.25%) if the amount agreed is up to
` 10 lakhs and ` 5 for every ` 1000 (approx. 0.5%) if the amount exceeds ` 10
lakhs
|
|
(ii)
|
relating to contracts for exclusive broadcasting/exhibition rights of a
film
|
|
(iii)
|
relating to specific performance by a person where contract > `
100,000
|
|
(v)
|
relating to assignment of Copyrights
|
|
(iv)
|
relating to creation of any obligation, right or interest and having
monetary value
|
` 1 for every ` 1000 (approx. 0.10%) if the amount agreed is up to
` 10 lakhs and ` 2 for every ` 1000 (approx. 0.20%) if the amount exceeds ` 10
lakhs
|
|
|
General (not otherwise provided for)
|
` 100
|
|
6
|
Agreement for Deposit of Title Deeds, Pawn, Pledge or
Hypothecation
Deposit of title deeds securing amount of loan or for pawn, pledge or
hypothecation securing amount of loan
|
` 1 for every ` 1,000 (approx. 0.1%) or part thereof of the amount secured
by the deed if the amount secured is up to ` 5,00,000 and ` 2 for every
` 1,000 (approx. 0.2%) in all other cases
|
|
10
|
Articles of Association of a Company
On the share capital, thereof subject to a nominal capital or
increased share capital (Exemption S. 25 companies)
|
` 1,000 for every ` 5,00,000 or part thereof subject to a maximum of
` 50,00,000 (approx. 0.2%)
|
|
12
|
Award by an Arbitrator or Umpire (not being an Award directing a
Partition)
|
|
|
(a)
|
On the property value to which the award relates
|
` 5 for every ` 500 or part thereof subject to a maximum of ` 100
|
|
(b)
|
Other cases
|
` 100
|
|
15
|
Cancellation
(Exemption: Revocation of will)
|
` 100
|
|
17
|
Certificate or Other Document
(Shares, Scrip,
Stock, etc. on face value and premium)
|
` 1 for every ` 1,000 or part thereof (approx. 0.1%)
|
|
24
|
Composition Deed
|
` 200
|
|
25
(a)
|
Conveyance (on the true market value)
Movable Property
|
` 15 for every ` 500 or part thereof (approx. 3%)
|
|
(b) (A)
|
Immovable Property
|
Duty on every ` 500 of Market Value
|
|
Within the Municipal limits of any urban area
|
5% of market value of property
|
|
Within the limits of any Municipal Council / Panchayat /Cantonment of any
area within MMRDA
|
4% of market value of property
|
|
Within the limits of any Gram Panchayat
|
3% of market value of property
|
|
(c)
|
High Court order u/s. 394 of the Companies Act, in respect of amalgamation
or reconstruction of companies
|
10% of market value of shares allotted in exchange and consideration if any
paid but not exceeding the higher of :
i) 5% of market value of the immovable
property located in Maharashtra or
ii) 0.7% of market value of shares allotted in exchange and
consideration if any paid
|
|
|
Special Points for Conveyance:
-
An agreement for sale providing for transfer of
possession shall be deemed to be a 'Conveyance' and will be stamped
accordingly. However, a set off of the duty paid will be given at the time of
execution of the conveyance.
-
Assignment of copyrights is exempt from stamp
duty.
-
In case of amalgamation/reconstruction of companies,
the market value of the shares of transferee company is the value of shares on
stock exchange on the "appointed day" mentioned in the scheme or else the date
of the court’s order. If the shares are not listed or not quoted, the
market value means the value of shares to the transferor company or the value
as determined by the Collector.
|
|
27
|
Counterpart/Duplicate
|
Maximum ` 100
|
|
32
|
Exchange
|
Same duty as on conveyance but on the market value of that property which
has the greater value
|
|
34
|
Gift (other than a settlement, will or transfer)
|
Same duty as on a conveyance. In case of a gift to spouse, brother, sister,
lineal ascendants or descendants @ ` 10 for every ` 500 or part thereof
(approx. 2%) of market value
|
|
35
|
Indemnity Bond
|
` 200
|
|
36
|
Lease including sub-lease:
a) where lease period is
i)
up to 5 years
ii) 5
years to 10 years with a renewal clause
iii) 10 years
to 29 years with a renewal clause
iv) exceeding
29 years or for indefinite period or for perpetuity
Special Points for Lease:
1. Consideration such as premium, security
deposit, advance, will for market value be treated as consideration passed
on.
2. An agreement for lease will not be
treated as lease if there is no immediate demise – Atur India P
Ltd., (1994) 2 SCC 497
|
Same Duty as on conveyance on the following values:
i) 10% of market value
ii) 25% of market value
iii) 50% of market value
iv) 90% of market value
|
|
36A
|
LEAVE & LICENCE
|
|
|
|
For a term not exceeding 60 months with or without a renewal clause
|
0.25% of the total sum of:
• Licence fees;
• Non-refundable deposit or premium; plus
• Interest @ 10% p.a. on the refundable
security deposit or money advanced
|
|
37
|
Letter of Allotment of Shares
|
` 1
|
|
39
|
Memorandum of Association
a) if accompanied with Articles
b) if not so accompanied
|
` 200
Same duty as on Articles of Association under Article 10
|
|
40
|
Mortgage Deed
|
|
|
a)
b)
|
Where possession is given
Where possession is not given
|
Same duty as on conveyance on the amount secured by the deed
` 5 for every ` 1000 or part thereof (approx. 0.5%); subject to a Maximum of
` 10,00,000 and a Minimum of
` 100
|
|
42
|
Notary (attestation, etc., by Notary Public)
|
` 25
|
|
46
|
Partition
Special Points :
1. The value of largest share remaining after the
partition will be excluded for duty
2. In case of order of partition by a Civil Court rebate
will be given to the extent of the Court Fees paid
3. ` 100 in case of agricultural land
|
` 10 for every ` 500 or part thereof (approx. 2%) of the market value of the
separated share or shares
|
|
47
(a)
(b)
(c)
(d)
|
Partnership
No contribution or cash contribution < ` 50,000
Cash Contribution > ` 50,000
Contribution by way of property (not cash)
Dissolution or Retirement
i) where any property is transferred to a partner other
than the one who brought it
ii) in any other case
NOTE: There is no mention about an LLP nor is there a
separate Article dealing with the same
|
` 500
` 500 for every ` 50,000 or part thereof (approx. 1%) subject to a maximum
of ` 5,000
Same as on a conveyance on the market value of property
Same as on a conveyance on the market value subject to a minimum of `
100
` 200
|
|
48
|
Power of Attorney
|
|
|
|
a. for sole purpose of registration
b. for suits in small causes court
c. for acting in a single transaction to one
or more persons
d. for acting in more than one transaction
or generally to one person
e. for acting in one or more transactions or
generally to one or more persons
f. (i) for or without
consideration and authorising to sell an immovable property
(ii) for
authorising to sell immovable property without consideration and given to
parents, siblings, spouse, children, grand children, other close relatives
g. for construction, development, sale, etc.
to a developer or promoter
h. in any other case
Special Points:
1. In case of (f), set off of duty paid will be
given on execution of the conveyance
2. Duty payable under (g) will be ` 100 only if duty is
already paid under Article 5 (g-a) on Development Rights’ Agreement
|
` 100
` 100
` 100
` 100
` 100
Same as on a conveyance on the market value
` 500
Same as on a conveyance on the market value
` 100
|
|
52
|
Release whereby a person renounces a claim upon other person or
property
If the release is of an ancestral property in favour of certain specified
relatives
Every other Case
|
` 200
Same duty as on a conveyance as on the market value of the share, interest
or part renounced
|
|
54
|
Security Bond ( where the amount secured exceeds `2500)
|
` 5 for every ` 1,000 or part thereof (approx. 0.5%) of the amount
secured
Maximum ` 10,00,000
Minimum ` 100
|
|
58
|
Surrender of Lease
i) without consideration
ii) with consideration
|
` 200
Same duty as on a conveyance on amount of consideration
|
|
59
|
Transfer
of marketable debentures
|
` 0.50 for every ` 100 (approx. 0.05%) of the consideration amount
|
|
60
|
Transfer of lease by way of assignment
|
Same as on a conveyance on the market value
|
|
61
|
Trust
A. a) where there is
disposition of property
i) for charitable or religious purpose
ii) in any other case where there is no disposition
b)
where there is no disposition
B. Revocation
|
` 10 for every ` 500 or part thereof (approx. 2%)
Same as on a conveyance on the amount settled
Maximum ` 200
|
SOME IMPORTANT INSTRUMENTS UNDER INDIAN STAMP ACT
|
27
|
Debenture being a marketable security Transferable
|
|
|
(a)
|
by endorsement and exceeding ` 1,000
|
` 1.85 for every ` 500 or part thereof (approx. 0.375%)
|
|
(b)
|
by delivery and exceeding ` 1,000
|
` 3.75 for every ` 500 or part thereof (approx. 0.75%)
|
|
62
|
Transfer of shares
|
25 paise for every ` 100 or part thereof (approx. 0.25%)
|
AD VALOREM COURT FEES PAYABLE UNDER THE BOMBAY
COURT FEES ACT, 1959
(Wherever Applicable)
|
Amount or Value of Subject Matter *
|
Court Fees
|
|
` 10,000
|
` 1,505
|
|
` 25,000
|
` 3,530
|
|
` 50,000
|
` 5,080
|
|
` 75,000
|
` 5,830
|
|
` 1,00,000
|
` 6,430
|
|
Over ` 1,00,000 and up to ` 11,00,000
` 10,000 or part thereof (approx. 2%)
|
` 6,430 + ` 200 for every
|
|
` 11,00,000
|
` 26,430
|
|
Over ` 11,00,000
or part thereof (approx. 1.2%) – subject to a
maximum fee of ` 3,00,000
|
` 26,430 + ` 1,200 for every ` 1,00,000
|
|
` 2,38,97,500
|
` 3,00,000
|
|
` 2,50,00,000
|
` 3,00,000 (maximum fee)
|
|
* Only some of the slabs are given
|
|
