Important Definitions & Stamp Duty Rates on Various Instruments as Per Bombay Stamp Act, 1958
The Bombay Stamp Act applies to the entire State of Maharashtra. All the instruments specified in the Schedule to the Act are covered under this Act.
1. IMPORTANT DEFINITIONS
1.1 “Conveyance” has been defined to include:
1. a conveyance on sale,
2. every instrument,
3. every decree or final order of any Civil Court,
4. every order made by the High Court u/s. 394 of the Companies Act, 1956 in respect of amalgamation of companies;
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.
1.2 “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.
1.3 “Instrument of partition” means any instrument whereby co-owners of any property divide or agree to divide such property and includes :
1. a final order for effecting a partition passed by any revenue authority or any civil court,
2. an award by an arbitration directing a partition, and
3. 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.
1.4 “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.
2. PAYMENT
2.1 It can be paid by way of adhesive or impressed stamps on the instruments.
2.2 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.
2.3 The date of issue of the stamp paper must not be more than 6 months older than the date of the execution of the instrument.
2.4 Liability to pay Stamp Duty will be on the person who has agreed to pay the same. The Act also 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.
2.5 Stamp duty is payable at rates specified in Schedule I. Depending upon the Instrument, it may be based upon nature of instrument which is either ad valorem.
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 gives 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.
2.6 Any person can apply to the Collector of Stamps for adjudication of the stamp duty payable on the instrument.
3. UNDER VALUED DOCUMENT
3.1 Under section 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 deficiency in duty.
3.2 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 suo motu submit an instrument for adjudication by the Collector u/s. 31 on payment of Rs. 100.
3.3 A person can be punished with rigorous imprisonment for up to 6 months (not less than 1 month) and with fine up to Rs. 5,000/-, if it is proved that the instrument was undervalued or short payment of duty was made with intention to evade duty.
SCHEDULE 1
RATES ON VARIOUS INSTRUMENTS AS PER BOMBAY STAMP ACT, 1958
MAHARASHTRA
| Article | Description | Stamp Duty | |||||||||
| 4 | Affidavit (Exemption: for use in the Court or Tribunal) | Rs.100/- | |||||||||
| 5 | Agreement | ||||||||||
| (a) Relating to sale of bill of exchange; | Re. 1 for every Rs.10,000 or part thereof | ||||||||||
| (b) Relating to purchase or Sale of Government Security; | 50 paise for every Rs.1,00,000/- or thereof of the value of Security at the time of its purchase or sale, as the case may be. | ||||||||||
| (c) Development Rights Agreement | Rs.5 for every Rs.500 or part thereof of the market value of the property | ||||||||||
| (d) Relating to the purchase of one or more units in any scheme or project by an investor from a developer. | Same duty as on conveyance under clauses (a), (b), (c) or (d) of Article 25 on the market value of the unit; | ||||||||||
| Note: The purchaser would get a set off of Stamp Duty to the extent of the amount of Stamp Duty paid by the seller, on the second document of conveyance made within three years from the date of the agreement by the purchaser & if no duty is required to be paid, then the minimum duty for the conveyance shall be Rs.1,000/- | |||||||||||
| (e) Relating to transfer tenancy rights (duty per sq. m.) |
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| (f) relating to hire purchase | Same as in case of lease. | ||||||||||
| (g) relating to : — | |||||||||||
| (i) any advertisement on mass media made for promotion of any product or programme or event with an intention to make profit out of it. | Rs. 2.50/- for every Rs.1,000 or part thereof on the amount agreed in the contract. subject to minimum Rs 100/- and maximim Rs 10,00,000 | ||||||||||
| (ii) Conferring exclusive rights of telecasting, broadcasting or exhibition of any event or a film, | Rs. 2.50/- for every Rs.1,000 or part thereof on the amount agreed in the contract. subject to minimum Rs 100/- and maximim Rs 10,00,000 | ||||||||||
| (iii) Specific performance by any person or group of persons where the value of contract exceed Rs.1 lakh; | Rs. 2.50/- for every Rs.1,000 or part thereof on the amount agreed in the contract.subject to maximim Rs 10,00,000 | ||||||||||
| (iv) Creation of any obligation, right or interest & having monetary value but not covered under this article; | One Rupee for every Rs. 1,000 or part thereof on the amount agreed in the contract subject to minimum Rs 100 and maximim Rs 10,00,000 | ||||||||||
| (v) Assignment of copyright under the Copyrights Act, 1957. | Rs. 2.50 for every Rs.1,000 or part thereof on the amount agreed in the contract. of the value signed for such assignment subject to minimum Rs 100 and maximim Rs 10,00,000 | ||||||||||
| (vi) Project under Built, Operate and Transfer (BOT) System, whether with or without toll or fee collection Rights. | One Rupee for every rupees 1,000/- or part thereof of the contractual value subject to the minimum of Rs.100 and maximum of Rs. 5,00,000 | ||||||||||
| (vii) If not provided, otherwise | One Hundred Rupees | ||||||||||
| 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 | Re.1 for every Rs.1,000 or part thereof of the amount secured by the deed — Maximum of Rs. 5,00,000 & Minimum of Rs.100 | ||||||||||
| 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) | Rs.1,000 for every Rs. 5,00,000 or part thereof subject to a maximum of Rs. 50,00,000 | ||||||||||
| 12 | Award by an Arbitrator or Umpire (not being an Award directing a Partition) |
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| (a) On the property value to which the award relates | The same duty as bond (Article 13) Subject to maximum Rs.100. | ||||||||||
| (b) Other cases | Rs. 100 | ||||||||||
| 15 | Cancellation (Exemption: Revocation of will) | Rs. 100 | |||||||||
| 17 | Certificate of Other Document (Shares, Scrip, Stock, etc. on face value + premium) | Re. 1 for every Rs.1, 000 or part thereof on (approx. 0.1%) | |||||||||
| 24 | Composition Deed | Rs. 200 | |||||||||
| 25 | Conveyance (on the true market value) | ||||||||||
| (a) Movable Property for every Rs. 500 or part thereof | Rs. 15 | ||||||||||
| (b) (A) Immovable Property | |||||||||||
| (i) In Rural areas within Bombay Metropolitan Region (BMR) | Rs. 25 | ||||||||||
| (ii) Residential property in Rural area not in BMR | Rs. 5 | ||||||||||
| (iii) Non-residential property in Rural area not in BMR | Rs. 15 | ||||||||||
| (iv) In C Class Municipal Councils | Rs. 20 | ||||||||||
| (v) In B Class Municipal Councils | Rs. 25 | ||||||||||
| (vi) In A Class Municipal Councils | Rs. 25 | ||||||||||
| (vii) In Municipal Corporation of Mumbai, Pune, Thane and Navi Mumbai | Rs. 25 | ||||||||||
| (viii) In Municipal Councils of certain Hill Stations | Rs. 25 | ||||||||||
| (viii) In Municipal Councils of BMR, Devlali, Dehu Road | Rs. 25 | ||||||||||
| (b) (B) If relating to a residential premises which is a building or an unit (Concessional rate of duty) | |||||||||||
| (a) by or in favour of a Co-op Housing Society | |||||||||||
| (b) where provisions of Maharashtra Ownership Flats Act or Maharashtra Apartment Ownership Act apply | |||||||||||
| (c) by Society in favour of its member or incoming member (by share or otherwise) | |||||||||||
| (d) by a member to another member including an incoming member | |||||||||||
| (e) purchase of land in cases covered by (a) to (d) above | Same duty as is payable under sub-clause (1) | ||||||||||
| Applicable Rates | |||||||||||
| (i) Does not exceed Rs. 2,50,000 | One Hundred Rupees | ||||||||||
| (ii) exceed Rs. 2,50,000 but does not exceed Rs. 5,00,000 | Rs. 100 plus 3% of the value above Rs. 2,50,000 | ||||||||||
| (iii) exceeds Rs 5,00,000 | Rs. 7,600 plus 5% of the value above Rs. 5,00,000 | ||||||||||
| (c) High Court order u/s. 394 of the Companies Act, in respect of amalgamation or reconstruction of companies. | 10% of the aggregate of the market value of shares issued or allotted in exchange or otherwise and the amount of consideration paid for such amalgamation: | ||||||||||
| the amount of duty chargeable under this clause shall not exceed-— | |||||||||||
| (i) 5% of the true market value of the immovable property located in Maharashtra of the transferor company; or | |||||||||||
| (ii) 0.7% of the aggregate of the market value of shares issued or allotted in exchange or otherwise and the amount of consideration paid, for such amalgamation, whichever is higher: | |||||||||||
| Provided further that, in case if reconstruction or demerger the duty charegeable shall not exceed— | |||||||||||
| (i) 5% of the true market value of the immovable property located in Maharashtra transferred by the Demerging Company to the Resulting Company: or |
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| (ii) 0.7% of the aggregate of the market value of shares issued or allotted to the Resulting Company and the amount of consideration paid for such Demerger, whichever is higher. | |||||||||||
Special Points for Conveyance
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| 27 | Counterpart/Duplicate | Maximum Rs.100. The same duty as is payable on the original subject to maximum of Rs.100 | |||||||||
| 32 | Exchange | Same duty as on a conveyance on the value of that property which has the greatest value | |||||||||
| 34 | Gift (other than a settlement, will or transfer) | Same duty as on conveyance. In case of a gift to spouse, brother, sister, lineal ascendants or descendants @ Rs.10 for every Rs. 500 or part thereof | |||||||||
| 35 | Indemnity Bond | Rs. 200 | |||||||||
| 36 | Lease including sub-lease & any agreement to let or sub-let or any renewal of lease, where such lease purports to be: — | ||||||||||
| (i) for a period not exceeding 5 years. | Same duty as a levible on a conveyance under clause (a), (b), (c) or (d) of Article 25, on 10% of market value of the property. | ||||||||||
| (ii) for a period exceeding 5 years but not exceeding 10 years | Same duty as a levible on a conveyance under clause (a), (b), (c) or (d) of Article 25, on 25% of market value of the property. | ||||||||||
| (iii) for a period exceeding 10 year but not exceeding 29 years | Same duty as a levible on a conveyance under clause (a), (b), (c) or (d) of Article 25, on 50% of market value of the property. | ||||||||||
| (iv) for a period exceeding 29 years or in perpetuity or does not purport for definite period. | Same duty as a leviable on a conveyance under clause (a), (b), (c) or (d) of Article 25,on 90% of market value of the property. | ||||||||||
| 36A | LEAVE & LICENCE | ||||||||||
| (A) Where agreement purports to be for term not exceeding 60 months: — |
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| (i) if relating to residential Premises, (Mumbai City & Mumbai suburban district) | |||||||||||
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Rs. 750 for every term of 12 months or part thereof | ||||||||||
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Rs. 1,500 for every term of 12 months or part thereof | ||||||||||
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Rs. 3,000 for every term of 12 months or part thereof | ||||||||||
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Rs. 5,000 for every term of 12 months or part thereof | ||||||||||
| (ii) if relating to non residential premises | Twice the amount of duty chargeable for residential premises under clause (i), (ii), (iii) or (iv) above, as the case may be | ||||||||||
| (iii) the Municipal Corporation of cities Thane, Pune, Nagpur, Navi Mumbai etc. (1) if relating to residential premises, | |||||||||||
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Rs. 500 for every term of 12 months or part thereof | ||||||||||
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Rs.1,000 for every term of 12 months or part thereof | ||||||||||
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Rs.2,000 for every term of 12 months or part thereof | ||||||||||
| (iv) if relates to non-residential premises in above case | Twice the amount of duty chargeable for residential premises under clause (i), (ii) or (iii) above, as the case may be. | ||||||||||
| (v) Any place other than above (1) If relating to residential premises | |||||||||||
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Rs. 300 for every term of 12 months or part thereof. | ||||||||||
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Rs. 600 for every term of 12 months or part thereof. | ||||||||||
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Rs.1,200/- for every term of 12 months or part thereof. | ||||||||||
| (2) If relating tonon- residential premises | Twice the amount of duty chargeable for Residential premises under clause (i), (ii),or (iii) above, as the case may be. | ||||||||||
| (B) Where Agreement purports to be for term exceeding 60 months | Same duty as is leviable on lease | ||||||||||
| 37 | Letter of Allotment of Shares | Re.1 | |||||||||
| 39 | Memorandum of Association | ||||||||||
| (a) if accompanied with Articles | Rs. 200 | ||||||||||
| (b) if not so accompanied | Same duty as on Articles of Association under Article 10 according to Share Capital of the company. | ||||||||||
| 40 | Mortgage Deed | ||||||||||
| (a) Where possession is given | Same duty as on conveyance as the case may be of Article 25, for the amount secured by the deed. | ||||||||||
| (b) Where possession is not given | Rs. 5 for every Rs.1000 or part thereof subject to a maximum of Rs.10,00,000/- and a minimum of Rs.100 | ||||||||||
| 42 | Notary (attestation etc., by Notary Public) | Rs. 25 | |||||||||
| 46 | Partition | Rs.10 for every Rs. 500 or part thereof of the amount or the market value of the separated share or shares of the property. Note – The largest share remaining after the property is partitioned (or if there are two or more shares of equal value & not smaller than any other shares, then one of such equal shares) shall be deemed to be that from which the other shares are separated. |
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| 47 | Partnership | ||||||||||
| (a) No share of contribution in partnership, or where such share contribution (brought in way of cash) does not exceed Rs.50,000 | Rs. 500 | ||||||||||
| (b) where such share Contribution (brought in by way of cash) is in excess of Rs 50,000 for every Rs 50,000/- or part thereof. |
Rs. 500, subject to a maximum duty of Rs. 5,000 | ||||||||||
| (c) Contribution by way of Property (not cash) | Same as on a conveyance on the market value of property. | ||||||||||
| (d) Dissolution of partnership or Retirement of partner | |||||||||||
| (i) where any property is taken as his share by a partner other than a partner who brought in that value property as his share of contribution in the partnership. | Same as on a conveyance on the market subject to a minimum of Rs.100 | ||||||||||
| (ii) In any other case | Rs. 200 | ||||||||||
| 48 | Power of Attorney | ||||||||||
| (a) for sole purpose of Registration of documents | Rs. 100 | ||||||||||
| (b) for suits in small cause court | Rs. 100 | ||||||||||
| (c) for acting in a single transaction to one or more persons |
Rs. 100 | ||||||||||
| (d) for acting in more than one transaction or generally to one person | Rs. 100 | ||||||||||
| (e) for acting in one or more transactions or generally to one or more persons | Rs. 100 | ||||||||||
| (f) for consideration and authorization to sell an immovable property |
Same as on a Conveyance | ||||||||||
| (g) for construction, development, sale etc. to a developer or promoter | Same duty as is leviable on conveyance under clauses (b), (c), (d), as the case may be of Article 25 of the Market value of the property | ||||||||||
| (h) in any other case | Rs.100 for each person authorised | ||||||||||
| 51 A | Record of Transaction effected by a Trading Member through a stock exchange or the Association referred to in section 10B. |
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| (a) if relating to sale and purchase of government securities, |
Rs. 50 for every Rs.1 crore or part thereof of the value of security | ||||||||||
| (b) If relating to purchase or sale of securities, other than those falling under item (a) above | |||||||||||
| (i) in case of delivery | Re.1 for every Rs.10,000 or part thereof. | ||||||||||
| (ii) in case of non delivery | 0.20 paise for every Rs.10,000 or part thereof. | ||||||||||
| (c) if relating to futures & options trading | 0.20 paise for every Rs.10,000 or part thereof. | ||||||||||
| (d) if relating to forward contract of commodities traded through an association or otherwise. | Re.1 for every Rs.1,00,000 or part thereof. | ||||||||||
| 52 | Release; i.e., any instrument (not being instrument as provided by sec. 24) whereby a person renounces a claim upon such other person or against such property. | ||||||||||
| (a) if the release deed of an ancestral property or part thereof is executed by or in favour of brother or sister (children of renouncers parents) or son or daughter or son of predeceased son or daughter of predeceased son or father or mother or spouse of the renouncer or the legal, heirs of the above relations. | Two Hundred Rupees | ||||||||||
| (a) In any other case. | The same duty as is leviable on a conveyance under clause (a), (b), (c) or (d) as the case may be of Article 25, on the market value of the share interest, part or claim renounced. | ||||||||||
| 58. | Surrender of Lease | ||||||||||
| (i) Without consideration | Rs. 200 | ||||||||||
| (ii) With consideration | Same duty as on a Conveyance on amount of consideration |
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| 59. | Transfer (whether with or without consideration) | ||||||||||
| (a) of debentures, being marketable securities the whether the debenture is liable to duty or not except debentures provided for by section 8 of the Indian Stamp Act, 1989. | 0.50 paise for every Rs. 100 or part thereof of consideration. | ||||||||||
| (b) of any Interest secured by bond, mortgage deed or policy of insurance | |||||||||||
| (c) of any property under section 22 of the Administrators General Act,1963; | Same duty as a bond (Article 13) for such amount or value of the interest as set forth in Same as a bond maximum Rs. 200 | ||||||||||
| (d) of any trust property without consideration from one trustee to another trustee, or from a trustee to a beneficiary. | |||||||||||
| Exemptions.— transfers by endorsement — | |||||||||||
| (a) bill of exchange, cheque or promissory note; (b) bill of lading, delivery order, warrant of goods or other mercantile document or title to goods (c) Policy of Insurance; (d) securities of the Central Government. |
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| 61 | Trust | ||||||||||
| 1. (A) where there is disposition of property | |||||||||||
| (i) for charitable or religious purpose | Rs. 10 for every Rs. 500 or part thereof | ||||||||||
| (ii) in any other case where there is no disposition | Same as on a conveyance on the amount settled | ||||||||||
| (B) where there is no disposition of property | |||||||||||
| (i) All trust | Same as a bond maximum Rs. 200 | ||||||||||
| (ii) In any other case | Same as a bond maximum Rs. 200 | ||||||||||
| 2. Revocation of any property when made by any instrument other than a will |
Same as a bond maximum Rs. 200 | ||||||||||
I have to pay Maharastra stamp duty on Affidavit and Indemnity I have executed in the USA. I understand I can pay the duty within 3 months of execution as I am outside India.
I am not getting where I can pay, get the documents franked for delivery of the documents to the Companies.
Please help.
Thanks.