8/10/2019 Stamp Duty_ A Brief Overview In The State Of Maharashtra.pdf

1/2

12/4/2014 Stamp Duty: A Brief Overview In The State Of Maharashtra - Government, Public Sector - India

http://w ww .m ondaq.com /i ndi a/x/112368/Stam p+ Duty+ A+ Br ief+ Over vi ew +In+ The+ State+ Of+ Mahar ashtr a+

We use cookies to give you the best online experience. By using our website you agree to our use of cookies in accordance with our cookie policy. Learn morehere. Close Me

Home > India> Government, Public Sector

Last Updated: 20 October 2010Article by Renu Parekh

ALMT

India: Stamp Duty: A Brief Overview In The State Of Maharashtra

An infrastructure project involves, besides the actual project documents, finance documents, security documents etc. Dealing

with land plays a critical role in most projects. The role of a legal counsel includes preparing, executing, vetting of these

documents and structuring a wholesome transaction. As the costs of these proje cts are enormous so are the resultant

implications on stamp duty. Since, the ISA, BSA (both defined later) and other st amp acts have diverse classifications of

instruments under which each of them are covered, it is necessary for legal coun sel to understand the background and nature

of the stamp duty and its effects/impact on the entire project.

Stamp duty is a kind of tax, just like sales/income tax etc. and justifiably its basic purpose is to raise revenue for the

Government. Thus, like any other tax, stamp duty must be paid in full and on time to the Government, with delays attracting

penalties. Broadly speaking, stamp duty is levied on an instrument (and not on a transaction) stamp duty is payable on

property (whether immovable/ movable or tangible/intangible) either on a fixed basis or on the basis of the consideration

mentioned in the instrument as the case may be. In case of immovable property, there is an additional concept of valuation of

the property, which is also taken into account while determining the stamp duty p ayable.

In India, the Indian Stamp Act, 1899 (ISA) is the Central Legislation while the States have their own local stamp acts to deal

with issues arisingwithin that particular State. The Bombay Stamp Act, 1958 which came into force on 16th February 1969

(BSA)is the law for stamp duty within theState of Maharashtra. Constitution of India empowers both the Parliament and the

State Legislature to make provisions and laws for stamp duty within its ambit. Accordingly, ISA covers certain documents as

specified therein. An instrument is defined under BSA to include every document by which any right or liability is, or purports to

be created, transferred, limited, extended, extinguished or recorded, but does not include a bill of exchange, cheque,

promissory note, etc. These documents that have been excluded, as aforesaid are governed under the ISA. The word

'document' is neither defined either in ISA nor the BSA and one needs to rely upon the Evidence Act, 1872 and The General

Clauses Act, 1897 for its interpretation. With the enactment of Information Technology Act, 2000 the term 'document' also

includes any electronic record as defined therein. Popularly, the words instruments and documents are used interchangeably.

Often the phrase 'duly stamped' is used in relation to an instrument. It connotes that an instrument bears an

adhesive/impressed stamp of not less than the proper amount. Stamp papers can be validly purchased from the State

'authorized vendors' and in cases of high denomination, stamp duty can also be paid by way of franking the instrument again

through the State authorized channels. A duly stamped document can be admitted as evidence in any lawful transaction or in a

court of law with few exceptions under the criminal proceedings.

In Maharashtra, prior to 1st May, 1994 stamp papers could be purchased in the names of advocates or in any other name.

However, thereafter stamp papers are to be purchased in the name of one of the parties to the instrument. Furthermore, the

validity of stamp papers are restricted to a period of 6 months and if the stamp paper is used thereafter then it is deemed that

the document is executed on ordinary paper without a stamp.

If an instrument falls within several descriptions in Schedule I of the BSA with different rates of duties, then the instrument is

chargeable with the highest of the duty prescribed. In addition, BSA also prescribes methodology for adjudication (proper

valuation), refund of duties, grievance processes and convictions etc. The Collector is normally authorized or vested with the

power of adjudication. If a document is not stamped or adequately stamped, it is likely to be impounded.

Circumventing the instruments classifications with a view to avoid or reduce duties has long been historically established. In

order to bring this circumvention/avoidance within the taxing network, the classifications of instruments, rates etc. are revised

periodically. The Government is to promote certain industries, remit either in full or in part the stamp duty payable by such

identified industries.

http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=41http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=45http://www.mondaq.com/default.asp?topic_id=25&product_id=28http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/default.asp?topic_id=10&product_id=28http://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=82http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/default.asp?topic_id=9&product_id=28http://www.mondaq.com/default.asp?ncountry_id=232&product_id=9&topic_id=0&upd=dropallhttp://www.mondaq.com/default.asp?topic_id=16&product_id=28http://www.mondaq.com/default.asp?topic_id=12&product_id=28http://www.mondaq.com/default.asp?topic_id=12&product_id=5http://www.mondaq.com/default.asp?topic_id=3&product_id=28http://www.mondaq.com/default.asp?topic_id=12&product_id=2http://www.mondaq.com/default.asp?topic_id=23&product_id=28http://www.mondaq.com/default.asp?topic_id=12&product_id=3http://www.mondaq.com/default.asp?topic_id=5&product_id=28http://www.mondaq.com/default.asp?topic_id=12&product_id=8http://www.mondaq.com/default.asp?topic_id=5&product_id=28http://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=30http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/default.asp?topic_id=14&product_id=28http://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=82http://www.mondaq.com/default.asp?topic_id=18&product_id=28http://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=216http://www.mondaq.com/default.asp?topic_id=22&product_id=28http://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=104http://www.mondaq.com/default.asp?topic_id=12&product_id=5http://www.mondaq.com/default.asp?ncountry_id=153&product_id=9&itopic_id=12&upd=dropregionhttp://www.mondaq.com/content/contact.asp?article_id=112368&type=articlefirmhttp://www.mondaq.com/default.asp?topic_id=23&product_id=28http://www.mondaq.com/default.asp?topic_id=17&product_id=28http://www.mondaq.com/default.asp?topic_id=12&product_id=4http://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=41http://www.mondaq.com/default.asp?topic_id=21&product_id=28http://www.mondaq.com/default.asp?ncountry_id=97&product_id=9&topic_id=0&upd=dropallhttp://www.mondaq.com/default.asp?topic_id=3&product_id=28http://www.mondaq.com/default.asp?topic_id=7&product_id=28http://www.mondaq.com/default.asp?topic_id=25&product_id=28http://www.mondaq.com/default.asp?topic_id=15&product_id=28http://www.mondaq.com/default.asp?topic_id=12&product_id=28http://www.mondaq.com/default.asp?topic_id=13&product_id=28http://www.mondaq.com/default.asp?topic_id=16&product_id=28http://www.mondaq.com/default.asp?topic_id=12&product_id=8http://www.mondaq.com/default.asp?topic_id=20&product_id=28http://www.mondaq.com/default.asp?ncountry_id=30&product_id=9&itopic_id=12&upd=dropregionhttp://www.mondaq.com/default.asp?child_id=0&ncountry_id=0&topic_id=0&product_id=28http://www.mondaq.com/default.asp?ncountry_id=0&child_id=0&topic_id=0&product_id=0http://www.mondaq.com/default.asp?topic_id=9&product_id=28http://www.mondaq.com/default.asp?child_id=0&ncountry_id=0&topic_id=0&product_id=0http://www.mondaq.com/default.asp?ncountry_id=106&product_id=9&itopic_id=12&upd=dropregionhttp://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=241http://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=232http://www.mondaq.com/default.asp?topic_id=2&product_id=28http://www.mondaq.com/default.asp?topic_id=12&product_id=1http://www.mondaq.com/default.asp?ncountry_id=221&product_id=9&itopic_id=12&upd=dropregionhttp://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=150http://www.mondaq.com/default.asp?ncountry_id=242&product_id=9&topic_id=0&upd=dropallhttp://www.mondaq.com/default.asp?ncountry_id=45&product_id=9&itopic_id=12&upd=dropregionhttp://www.linkedin.com/shareArticle?mini=true&url=http%3A%2F%2Fwww%2Emondaq%2Ecom%2F404%2Easp%3F404%3Bhttp%3A%2F%2Fwww%2Emondaq%2Ecom%3A80%2Findia%2Fx%2F112368%2FStamp%2BDuty%2BA%2BBrief%2BOverview%2BIn%2BThe%2BState%2BOf%2BMaharashtra%2B&title=Stamp+Duty%3A+A+Brief+Overview+In+The+State+Of+Maharashtra+++%2D+Government%2C+Public+Sector+%2D+India&summary=An+infrastructure+project+involves%2C+besides+the+actual+project+documents%2C+finance+documents%2C+security+documents+etc%2E+Dealing+with+land+plays+a+critical+role+in+most+projects%2E+&source=Mondaq.Comhttp://www.mondaq.com/default.asp?topic_id=3&product_id=28http://www.mondaq.com/default.asp?topic_id=1&product_id=28http://www.mondaq.com/default.asp?topic_id=14&product_id=28http://www.mondaq.com/default.asp?topic_id=12&product_id=27http://www.mondaq.com/default.asp?topic_id=13&product_id=28http://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=132http://www.mondaq.com/default.asp?topic_id=15&product_id=28http://www.mondaq.com/default.asp?ncountry_id=55&product_id=9&itopic_id=12&upd=dropregionhttp://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=97http://www.mondaq.com/default.asp?ncountry_id=125&product_id=9&topic_id=0&upd=dropallhttp://www.mondaq.com/default.asp?topic_id=19&product_id=28http://www.mondaq.com/default.asp?ncountry_id=196&product_id=9&itopic_id=12&upd=dropregionhttp://www.mondaq.com/default.asp?topic_id=12&product_id=7http://www.mondaq.com/default.asp?topic_id=5&product_id=28http://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=221http://www.mondaq.com/default.asp?ncountry_id=216&product_id=9&itopic_id=12&upd=dropregionhttp://www.mondaq.com/default.asp?topic_id=12&product_id=9http://www.mondaq.com/default.asp?topic_id=6&product_id=28http://www.mondaq.com/default.asp?ncountry_id=21&product_id=9&topic_id=0&upd=dropallhttp://www.mondaq.com/default.asp?topic_id=7&product_id=28http://www.mondaq.com/content/company.asp?article_id=112368&company_id=22754http://www.mondaq.com/content/author.asp?article_id=112368&author_id=747690http://www.mondaq.com/default.asp?ncountry_id=104&product_id=9&itopic_id=12&upd=dropregionhttp://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=21http://www.mondaq.com/default.asp?ncountry_id=150&product_id=9&itopic_id=12&upd=dropregionhttp://void%280%29/http://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=153http://www.mondaq.com/default.asp?topic_id=26&product_id=28http://www.mondaq.com/default.asp?ncountry_id=241&product_id=9&topic_id=0&upd=dropallhttp://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=196http://www.mondaq.com/default.asp?product_id=0&topic_id=12http://www.mondaq.com/default.asp?ncountry_id=100&product_id=9&itopic_id=12&upd=dropregionhttp://www.mondaq.com/default.asp?topic_id=6&product_id=28http://www.mondaq.com/default.asp?topic_id=12&product_id=6http://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=242http://void%280%29/http://www.mondaq.com/default.asp?topic_id=10&product_id=28http://www.mondaq.com/default.asp?topic_id=11&product_id=28http://www.mondaq.com/default.asp?ncountry_id=132&product_id=9&itopic_id=12&upd=dropregionhttp://www.mondaq.com/default.asp?topic_id=4&product_id=28http://www.mondaq.com/default.asp?topic_id=27&product_id=28http://www.mondaq.com/default.asp?topic_id=24&product_id=28http://www.mondaq.com/default.asp?topic_id=9&product_id=28http://www.mondaq.com/default.asp?topic_id=12&product_id=2http://www.mondaq.com/default.asp?ncountry_id=232&product_id=9&topic_id=0&upd=dropallhttp://void%280%29/http://twitter.com/home/?status=http%3A%2F%2Fwww%2Emondaq%2Ecom%2Findia%2Fx%2F112368%2FStamp%2BDuty%2BA%2BBrief%2BOverview%2BIn%2BThe%2BState%2BOf%2BMaharashtra%2Bhttp://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=125http://www.mondaq.com/default.asp?ncountry_id=24&product_id=9&topic_id=0&upd=dropallhttp://www.mondaq.com/default.asp?topic_id=12&product_id=3http://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=24http://www.mondaq.com/default.asp?topic_id=1&product_id=28http://www.mondaq.com/default.asp?topic_id=5&product_id=28http://www.facebook.com/sharer.php?u=http%3A%2F%2Fwww%2Emondaq%2Ecom%2Findia%2Fx%2F112368%2FStamp%2BDuty%2BA%2BBrief%2BOverview%2BIn%2BThe%2BState%2BOf%2BMaharashtra%2B&t=Stamp+Duty%3A+A+Brief+Overview+In+The+State+Of+Maharashtra+++%2D+Government%2C+Public+Sector+%2D+Indiahttp://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=100http://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=106http://www.mondaq.com/default.asp?ncountry_id=41&product_id=9&topic_id=0&upd=dropallhttp://www.mondaq.com/default.asp?topic_id=2&product_id=28http://www.mondaq.com/literal.asp?product_id=14&section_id=81http://www.mondaq.com/default.asp?ncountry_id=82&product_id=9&topic_id=0&upd=dropallhttp://www.mondaq.com/default.asp?topic_id=10&product_id=28http://www.mondaq.com/default.asp?topic_id=4&product_id=28http://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=45http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/default.asp?topic_id=12&product_id=9&ncountry_id=55http://www.mondaq.com/default.asp?topic_id=12&product_id=28http://www.mondaq.com/default.asp?topic_id=11&product_id=28

8/10/2019 Stamp Duty_ A Brief Overview In The State Of Maharashtra.pdf

2/2

12/4/2014 Stamp Duty: A Brief Overview In The State Of Maharashtra - Government, Public Sector - India

http://w ww .m ondaq.com /i ndi a/x/112368/Stam p+ Duty+ A+ Br ief+ Over vi ew +In+ The+ State+ Of+ Mahar ashtr a+

Contact Us| Your Privacy|Feedback

Mondaq Ltd 1994 - 2014All Rights Reserved

Do you have a Question or Comment?Click here to email the Author

Interested in the next Webinar on this Topic?Click here to register your Interest

Renu Parekh

ALMT

Email Firm More from this Firm

More from this Author

Renu Parekh

The Department of Registration and Stamps, Government of Maharashtra, the 2nd highest revenue earning department, had a

vast presence with over 400 offices managed by 2500 employees and generates various job opportunities. It undertook an

ambitious IT project called SARITA (Stamps and Registration Information Technology Based Administration) whereby all the

sub registrar/district level/division level offices as well as the Head Quarters at Pune have been computerized and automated.

SARITA has been operational since January 2001 and has registered more than 2 million documents with the estimated

revenues exceeding Rs. 5000 crores.

The challenge for legal counsel in structuring documents arises to make it 'stamp duty friendly' with the different slabs and

classifications available. Care needs to be taken as the documents attract duty on arrival within a State and with eager

regulators around, it's best to be conformist in approach.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about

your specific circumstances.

Contributor

Authors

http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/content/company.asp?article_id=112368&company_id=22754http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/yourview.asphttp://www.mondaq.com/content/author.asp?article_id=112368&author_id=747690http://www.mondaq.com/content/company.asp?article_id=112368&company_id=22754http://www.mondaq.com/content/author.asp?article_id=112368&author_id=747690http://www.mondaq.com/content/author.asp?article_id=112368&author_id=747690http://www.mondaq.com/content/contact.asp?article_id=112368&type=articlefirmhttp://www.mondaq.com/content/author.asp?article_id=112368&author_id=747690http://www.mondaq.com/literal.asp?section_id=173&product_id=26http://www.mondaq.com/content/contact.asp?article_id=112368&type=articlefirmhttp://www.mondaq.com/literal.asp?section_id=172&product_id=26http://www.mondaq.com/access/rssfeeds.asp?ipc_id=28&itopic_id=12http://www.mondaq.com/content/company.asp?article_id=112368&company_id=22754http://www.mondaq.com/literal.asp?section_id=171&product_id=26