Stamp Duty in Mumbai Based on Area Type. 2. The Penalty on the instruments mentioned in the Appendix is reduced to ten per cent of total penalty on the deficient portion of the duty. Stamp duty rate: The rates at which stamp duty is charged in various Indian states at present range from 4 per cent to 10 per cent. 0.2 % of the amount agreed in the contract. The Reckoner divides the immovable property into various categories such as land, residential units, industrial units/office, shops, etc., and fixes their market value accordingly. LETTER OF ALLOTMENT OF SHARES in any company or proposed company, or in respect of any loan to be raised by any company or proposed company. The purchaser has to enter into an agreement with the seller of the flat and the stamp duty is computed as per the agreement value . Section 35 of List 1 of the Bombay Stamp Act states that the stamp duty on the compensation loan was 500/- (five hundred rupees). E-payment is a mode of payment in addition to the conventional methods of payment offered by the Government of Maharashtra which is popularly known as GRAS(Government Receipt Accounting System). Rs. 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. --Where under clause (f), duty has been paid on the power of attorney, and a conveyance relating to that property is executed in pursuance of power of attorney between the executant of the power of attorney and the person in whose favour it is executed, the duty on conveyance shall be the duty calculated on the market value of the property reduced by duty paid on the power of attorney. 9.12 Voluntary disclosure of fact of instrument not duly stamped. If on adjustment, no duty is required to be paid then a minimum duty for the conveyance shall be Rs. So i want to know, whether the payment of stamp duty for these agreements fall under Maharashtra Stamp Act or Indian Stamp Act. Would this fall under Article 5(h) (A) (iv) or Article 5(h)(B) since there is a huge difference in the stamp duty levied in both the cases. Explanation. Explanation- for the purpose of this clause, the principal or primary security shall mean, the security created under clause (a) or (b) above. such agreement, records thereof or memorandum, as they apply to an instrument under that section: Provided further that, if the proper stamp duty is paid under clause (g) of article 48 on a power of attorney executed between the same parties in respect of the same property then, the stamp duty under this article shall be one hundred . (A) for the purpose of non -residential use of any nature whatsoever; The same duty as is payable under Article 36(iv). Stamp duty is a legal tax payable in full and acts as an evidence for any sale or purchase of a property. The registration fee is 1.05%. What is stamp duty on gift deed in Mumbai?. 100/- any fraction of Rs. 0.25 % of the total sum of --- (i) the license fees or rent payable under the agreement; plus (ii) the amount of non- refundable deposit or money advanced or to be advanced or premium, by whatever name called; plus (iii) the interest calculated at the rate of 10% p.a. Tenancy agreement in Maharashtra When renting a property, landlords and tenantsmust engage in proper documentation to make the rental agreements legally binding. 9.10 Section 38of the principal Act shall be deleted. Further, any public officer can impound such improperly stamped instruments if it comes to his notice. Now, with the passage of this bill, this one year set-off period has now been extended to three years. For charging stamp duty, the instrument is not to be treated by the name it bears but by the substance or real nature of the transaction recorded therein. (a) if the amount agreed does not exceed Rs. 9.6 Deficient portion of stamp duty : amount of maximum penalty increased. (a) where the amount or value set forth in such contract does not exceed Rs. They cannot be in the name of the Chartered Accountant or Lawyer of the parties. * The amount of stamp duty has been calculated as per the provisions of Maharashtra Stamp Act( Bom. What was Stamp Duty At The Time Of Agreement Dates 10-12-1985 and 04-07-1980? There are a host of legal formalities involved. If the amount secured is more than Rs.5 lakhs then the Stamp duty shall be 0.3% of the amount secured subject to a maximum of Rs.20 Lakhs. Stamp Duty on Rental Agreement. then value declared by these departments in notice is treated as final market value. A.Hi, Stamp duty and Registration Charges differ from one state to another. Stamp Duty Consultation And . 20,00,000/-. Sub : Levy of Stamp Duty on the Deeds of Agreements made prior to 10/12/1985 Reference : Your Letter No.BOM/5064/06 dated 03/08/2006 . // -->. Insection 32Aof the principal Act, (i) in sub-section (1), after the words by way of assignment the following portion shall be inserted, namely : and also any other instruments mentioned in SCHEDULE I chargeable with duty on the basis of market value of the property; (ii) in sub-section (2), in the third proviso, for the word double the words four times shall be substituted; (iii) in sub-section (4), (a) the first and second provisos shall be deleted; (b) in the third proviso, for the word double the words four times shall be substituted. Now, Let's discuss the Stamp Duty in State-Delhi. Vipra Chadha Vipra is a full-time content writer and a part-time Netflix addict. In all other cases, it is to be paid by the person executing the instrument. Amendment to Section 70 of Maharashtra Stamp Act: By way of this amendment, the amount of stamp duty, which is determined, payable on instruments chargeable with more than Rs. For business users who are e-stamping their documents, you must register for an e-Stamping Account ID via the IRAS e-Stamping portal. (iv) for a period exceeding 29 years , or in perpetuity, or does not purport for any definite period, or for lease for a period exceeding 29 years, with a renewal clause contingent or otherwise. 68. LX of 1958), the Government of Maharashtra, having satisfied that it is necessary to do so in the public interest, hereby reduces, with effect from the 1st August, 1994, the maximum duty chargeable on Articles of Association of a Company under Article 10 of Schedule I of the said Act, to Rs. Here is how are two charges he needs to pay to register this property. 0.5 % of the amount agreed in the contract. bodies or local authorities e.g. However, the maximum penalty cannot exceed four times the amount of duty involved i.e. Other states levy additional tax such as metro cess and local body tax along with stamp duty. The same duty as a conveyance under clause (a), (b), or (c), as the case may be, of Article 25, for a sum equal to the amount settled or the market value of the property settled. Exemptions Affidavit or declaration in writing when made --. (1) The deposit of title deeds or instrument constituting or being evidence of the title to any property whatever (other than a marketable security), where such deposit has been made by way of security for the repayment of money advanced or to be advanced by way of loan or an existing or future debt; (a) if the amount secured by such deed does not exceed Rs. The expression co-owners includes all kinds of, 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. 10,00,000; 0.25 % of the amount agreed in the contract subject to minimum of Rs.100. Stamp Paper: The rent agreement must be executed on non-judicial stamp paper of the correct value as per the applicable stamp duty laws. A license agreement is a document, executed between two or more parties, evidencing the terms and conditions of such patent licensing in India. The same duty as is leviable on a conveyance under clause (a), (b) or as the case may be (c) of Article 25, on the market value of the share, interest, part or claim renounced. 1-5-1994, the date of issue of the stamp paper must not be more than 6 months older than the date of the transaction. Stamp duty is levied on transactions involving residential property, commercial property and freehold or leasehold properties. Advise on stamp duty applicability and ensuring compliance of Stamp Act. As per Article 53 of Indian Stamp Act, 1899, RECEIPT for any money or other property the amount or value of which exceeds Rs. It is an indirect tax collected by the State Government in Maharashtra. The same duty as is leviable on a Conveyance under clause (a), (b) or (c), as the case may be, of article 25, on 90 % of the market value of the property. 5,00,000; Explanation No duty shall be chargeable on agreements or its record covered under sub-clauses (b) and (c ) of this article, if proper duty is paid under Article 51 A, Agreement or its records or Memorandum of Agreement--. Thus, within the said area a further transaction from the original purchaser to the next purchaser is not eligible for the reduction in the stamp duty under this order. (3) The Occupancy Certificate must be granted by the concerned Planning Authority. Raghunath Dadaji Street, Near Handloom House, Fort, Mumbai -400 001 +91 84510 22225; info@igrzone.co.in; Practice Area. (g) when given to a promoter or developer by whatever name called, for construction on, development of, or sale or transfer (in any manner whatsoever) of, any immovable property. Articles of any association not formed for profit and registered under section 25 of the Companies Act, 1956 See also Memorandum of Association of a Company (Article 39). 1,00,00,000 or part thereof of the value of security, (b) if relating to purchase or sale of securities, other than those following under item (a) above,-, Re.0.20 for every Rs.10,000 or part thereof, (c) if relating to futures and options trading, (d) if relating to forward contracts of commodities traded through and association or otherwise. If MOA is not accompanied by AOA, then Stamp duty on MOA will be 0.2% according to the share capital subject to minimum of Rs. Stamp Duty to be paid to the state where registered office of the company is situated. Controller of Stamps, Mumbai. In Maharashtra the Ready Reckoner changes every financial year i.e. The instruments specified in the Schedule-I to the Act are covered by this Act. it changes every April. Insection 31of the principal Act, in sub-section (4), in the proviso, for the word double the wordsfour timesshall be substituted. For license agreemnt there is stamp duty & registration charges it is calculated as Total rent+ Deposit X 0.025. 100. (a) as a condition of enrolment under the Air Force Act, 1950, (XLV of 1950) the Army Act, 1950 (XLVI of 1950) or the Navy Act, 1957 (LXII of 1957); (b) for the immediate purposes of being filed or used in any Court or before the officer of any Court; or. Stamp duty in Mumbai depends on a lot of factors. Explanation II-For the purposes of this Article ,any new instrument executed for additional loan or extension of previous loan shall be treated as a fresh instrument and chargeable with the duty to the extent of additional amount being secured or disbursed or sanctioned. 5,00,000; 0.1% of the amount secured by such deed subject to the minimum of Rs. You can get the eSBTR on giving a printout of proof of payment online at nominated branches of the bank. (a) for or relating to the purchase of sale of goods or merchandise exclusively, not being an agreement or memorandum of agreement chargeable under entry (d), entry (e), entry (f) or entry (g) of this Article or a note or memorandum chargeable under Article 43; AGREEMENT TO LEASE: See Lease (Article 36). (ii) For the purpose of clause (da), the number of shares issued or allotted in exchange or otherwise shall mean, the number of shares of the transferor company accounted as per exchange ratio as on appointed date. [Title] So we have rented a flat in Mumbai, the owners include me, my mom and my sister. 10.2 Amendment in Article 1 of Schedule I, In SCHEDULE I of the principal Act , in Article 1, in clause (1),-, exceeds rupees 10,000 but is less than rupees 10,00,000; and, 11.1Amendment of SCHEDULE I appended to Maharashtra Stamp Act. 4.6 The date of issue of the stamp paper must not be more than 6 months older than the date of the transaction. 100, if such transfer or assignment is made within a period of 1 year from the date of the agreement. In cases of Bonds, Release, Settlement, it is to be paid by the person making or drawing the instrument. Mundrak. The stamp duty on rental agreements consists of a flat charge of 0.25% of the total rent for the time that must be applied to all leave and license agreements. The same duty as is leviable on a Conveyance under clauses (b) or (c), as the case may be, of Article 25, on the market value of the property. 100/- shall be charged. Mudrank-2020/C.R.136/M-1 (Policy) issued by Revenue and Forest Department dated 29.08.2020 wherein the Stamp Duty chargeable under Article 25(b) of Schedule I of Maharashtra Stamp Act, 1958 on the instrument of Conveyance or Agreement to Sell of any immovable property in Mumbai City and Mumbai Suburban was reduced by Three percent (3%) for the period starting from 1st September, 2020 and ending on 31st December, 2020 and by Two percent (2%) for the period starting from 1st January, 2021 and ending on 31st March, 2021. The stamp duty on rent agreement you pay in Mumbai is governed by the Bombay Stamp Act, 1958. ], A. The same duty as is leviable on Conveyance under clause (a), (b) or (c), as the case may be, of article 25 on 50 % of the market value of the property. Proof of Title: Insection 52A of the principalAct, (a) in sub-section (1), for the words one lakh the words five lakhs shall be substituted; (b) in sub-section (2), for the words ten lakhs at both the places where they occur, the words twenty lakhs shall be substituted. (ii) within the limits of any Municipal Council or Nagar Panchayat or Cantonment area annexed to it, or any rural area within the limits of the Mumbai Metropolitan Region Development Authority, or the Influence Areas as per the annual statement of rates published under the Bombay Stamp (Determination of True Market Value of Property) Rules, 1995. . // -->