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1. What is
the extent of application of the Bombay Stamp Act,
1958?
The Act applies to the whole of the State of
Maharashtra.
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2. What is an
"Instrument" under the Act?
"'Instrument' includes
every document by which any right or liability is or purports
to he created, transferred, limited, extended, extinguished or
recorded, but 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." |
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3. What is market value?
Market value 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 the open market on the date of execution of
such instrument or the consideration mentioned in the
instrument, whichever is higher. The price which such property
would have fetched if sold in the open market is determined on
the basis of the Ready Reckoner issued each year. Depreciation
in stamp duty is available for old buildings and building
without lift. |
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4. When is stamp duty
payable on an instrument in Maharashtra?
All
instrument are liable to be stamped before or at the time of
execution of instrument or immediately thereafter on the next
working day following the date of execution, when executed in
the State of Maharashtra. Any instrument executed outside the
state is liable to duty only on receipt of such instrument in
the state, provided it relates to a property situated in the
state, or a matter or thing to be done in the state. Stamp
duty is not levied on a transaction, but on an instrument. |
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5. What is the rate at
which stamp duty is payable?
Stamp duty is payable at
the rate mentioned in Amendment Act, 2004 of the Bombay Stamp
Act, 1958. |
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6. Which documents are
required to be compulsorily registered?
Documents
listed in Section 17 of the Indian Registration Act, 1908 are
to be registered compulsorily. Registration of documents
listed in Section 18 of the Indian Registration Act, 1908 is
optional. An agreement for leave and licence is required to be
compulsorily registered under the Maharashtra Rent Control
Act, 1999. |
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7. Is there a time
limit within which documents should be registered?
Yes.
Documents must be registered within 4 months of the date of
execution. Thereafter, documents can be registered within the
next 4 months on payment of penalty. |
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8. Who is required to
pay stamp duty and registration fee on purchase or lease of a
flat or office?
A purchaser (whether on first sale
from a developer or on resale of a flat) or a lessee of a flat
or office is required to pay stamp duty and registration fee. |
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9. How is stamp duty
paid in Maharashtra?
Stamp duty above the value of Rs.
25,000 is payable by a pay order/ demand draft/cheque drawn in
favour of "The Superintendent of Stamps, Mumbai".
Alternatively, a pay order can be drawn in favour of "The
Reserve Bank of India- A/c Stamp Duty, Mumbai". The original
instrument is then franked with the value of the stamp duty.
Adhesive stamps are no longer used in Mumbai city. Stamp Duty
upto the value of Rs.25,000 can be paid in cash. A receipt is
issued by the concerned office for the stamp duty amount. |
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10. What is the
procedure for registration of an instrument?
Once
adequate stamp duty is affixed on an instrument and it is
dated, signed by the parties and attested (where required) by
witnesses, it can be lodged for registration after payment of
the registration fee. All parties signing the instrument are
required to attend the office of the concerned Sub Registrar
of Assurances either by themselves or through their
constituted attorney under a power of attorney to admit
execution of the instrument.
A passport size photograph,
original power of attorney, personal identification such as
passport or income tax PAN Card, adequate xerox copies of the
original instrument are some of the essentials required for
registration.
After lodging an instrument, it is
registered and seal of the Sub Registrar is affixed on the
instrument, thereafter the original instrument is returned
back to the parties. |
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11. Is there a
restriction on the name in which stamp paper must be
purchased?
Yes. Therefore the stamp paper should be
purchased in the name of one of the parties who would be
signing the instrument. |
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12. Is there a time
frame within which the stamp paper must be used?
Yes.
Stamp paper should be used within 6 months from date of
purchase. Any stamps not used within this period are
invalid. |
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| 13. Is there a penalty
for not paying the requisite stamp duty? Yes. Previously
the penalty was an amount not exceeding 10 times the amount of
the proper duty. As per the recent amendments, penalty of 2%
per month on the proper duty for |
