All your queries related to stamp duty answered

In the absence of any agreement to the contrary, the purchaser/ transferee has to pay stamp duty or in case of exchange of properties, both parties have to bear stamp duty equally.

Under The Maharashtra Stamp Act, 1959, stamp duty is to be paid on all the documents by which any right or liability is or purports to be created, transferred, limited, extended, extinguished or recorded but does not include a cheque, promissory note, bill of exchange, bill of lading, letter of credit, policy of insurance, transfer of shares, debentures proxy and receipt, which is charged under Indian Stamp Act, 1899.

Is stamp duty payment to be done on the document or transaction?

Stamp duty is payable on the document and not on transactions. Stamp duty should be charged on the basis of the contents of the document only.

If any information essential for working out stamp duty is missing in the document, the stamp duty valuation officer can ask for the same. Information such as the carpet or built-up area of the flat, number of floors in the building, year of construction, name of division/village and C.S./C.T.S. number of the plot of land on which property is situated, must be mentioned in the agreement.

Does stamp duty have to paid on all documents relating to transfer of immovable property?

Except transfer by will and by nomination in a co-operative housing society all transfer documents including agreements to sell, conveyance deed, gift deed, mortgage deed, exchange deed, deed of partition, power of attorneys, leave and license agreement, agreement of tenancy, lease deeds, power of attorney to sell for consideration, etc. have to be properly stamped before registration.

In our opinion when a nominee transfers the flat subsequently in the name of legal heirs, that transfer Document is to be stamped as a Transfer as per Article 59 of Schedule – I of The Maharashtra Stamp Act, 1958, as nominee is a trustee and legal heirs are beneficiary.

What is the relevance of the dates 04-07-1980 and 10-12-1985?

From 04.07.1980, market value concept was introduced to pay stamp duty on conveyance, the purchaser is required to pay stamp duty on market value of the immovable property transferred as per article 25(b), at the time of execution of the conveyance. Whereas, prior to 04.07.1980 there was no market value concept and agreement value was accepted for stamp duty payment. Hence date 04.07.1980 relates to arrival of market value concept.

(The writer is a valuer of real estate and co-author of Stamp Duty Ready Reckoner)