BOMBAY STAMP ACT
TABLE OF STAMP DUTY
AMNESTY SCHEME UNDER THE BOMBAY STAMP ACT, 1958 REGARDING PENALTIES IN RESPECT OF UNPAID INSTRUMENTS
STAMP DUTY FOR LEAVE AND LICENSE AGREEMENT AND THE NEW RENT ACT, 1999 SPECIMEN OF LEAVE AND LICENSE AGREEMENT
Notification dated the 8th June, 2000
IMPORTANT NOTIFICATION OF THE BOMBAY STAMP ACT, 1958
THE BOMBAY STAMP ACT, 1958
28. CUSTOMES BOND OR EXCISE BOND
32. EXCHANGE OF PROPERTY
48. POWER OF ATTORNEY
60. TRANSFER OF LEASE
THE BOMBAY STAMP RULES, 1939
READY RECKONER OF STAMP DUTY
NEW READY RECKONER OF STAMP DUTY W.E.F. 1.9.95
TABLE OF STAMP DUTY
|Reference||Duty under Bombay Stamp Act, 1998||Duty under MaharashtraTax Laws (Levy and Amendment) Act, 2001 - Section 6|
|Article Instrument||Rs. P.||Rs. P.|
|Reference Article Instrument||Duty underBombay Stamp Act, 1998||Duty under MaharashtraTax Laws (Levy andAmendment) Act, 2001- - Section 6Rs. P|
|Rs. P.||Rs. P.|
|Reference Section Instrument||Duty underBombay Stamp Act, 1998||Duty under MaharashtraTax Laws (Levy andAmendment) Act, 2001- - Section 6|
|Rs. P.||Rs. P.|
AMNESTY SCHEME UNDER
THE BOMBAY STAMP ACT, 1958
REGARDING PENALTIES IN
RESPECT OF UNPAID INSTRUMENTS
G.O.R.D No. 1098 / 1004/Case No. 990, M-I, dated 26-11-1998. In exercise of the powers conferred by clause (a) of section 9 of the Bombay Stamp Act, 1958 (Bom. IX of 1958), the Government of Maharashtra having been satisfied that it is necessary to do so in the public interest, hereby reduces the penalty with which instruments mentioned in column (2) of the Schedule appended hereto, are chargeable under clause (b) of sun-section (1) of section 39 of the said Act which are pending with the Collector of Stamp for disposal and recovery or which will be received upto 31st March, 1999, to the extent of an amount specified against each of them in column (3) of the said Schedule.
|( 1 )||( 2 )||( 3 )|
|1||if payment of deficient portion of the Stamp Duty is made within 60 days from receipt of demand notice and where the deficient portion of the stamp duty is below Rs. 500/-.||Rs. 100/-|
|2||If payment of deficient portion of the Stamp duty is made within 60 days from receipt of demand notice and where the deficient portion of stamp duty is above Rs. 500/-.||Rs. 300/-|
|3||If payment of deficient portion of Stamp Duty is made 60 days but within 120 days from receipt of demand notice.||0.5 percent of the amount of deficient portion of Stamp Duty for the part there of from the date of execution of instrument.|
|4||If payment of deficient portion ofthe Stamp Duty is made after 120 days but within 180 days from receipt of demand notice.||1 percent of the amount of deficient portion of Stamp Duty for every month or part thereof from the date of execution of instrument.|
"STAMP DUTY FOR LEAVE AND LICENSE
AGREEMENT AND THE NEW RENT ACT, 1999"
1. 1. The New Maharashtra Rent Control Act, 1999 [Act 18 of 2000] having come into force from 30-3-2000, it is useful to note that under its provisions, Leases or licenses of premises have to be in writing and also have to be registered. In view of the above it becomes imperative to know that Agreements of Lease will attract stamp duty as under Article 36.
2. 2. However in case of Agreements of Leave and License it is clear that what is contemplated thereunder is permissive user of premises by license but not transfer of interest in premises. Parties retain in realm of agreement and not of any transfer of interest in immoveable property [premises]. [This general view regarding licensees has also been enunciated in 1999 (1) Mh. L. J. 37 Ramkrishna vs. Anand]. It is therefore required that Leave and Licenses Agreements be stamped under Article 5hg of the Bombay Stamp Act, attracting Rs. 20 as proper stamp duty. Any reference to any other provision of section 2(g) 2(n), Articles 25 or 38 would not be relevant for the purpose of proper stamp duty for agreements of Leave and License.
In the above view the clarificatory Circular / Notification through after controversy and debate issued is in proper direction and clarifies that proper stamp duty in such case is Rs. 20 Fees however for Registration of the document to be paid to registering authority is different from stamp duty on such document.
In respect of Registration Fees a Notification No. RGN 2000/2120/CR/592/M-1 dated 8th June 2000 issued in exercise of powers under sections 78, 79 of the Registration Act, 1908 provides for registration fee of Rs. 1000 in area of limits of Municipal Corporation and of
Rs. 500 in any other area as effective from the date of the Notification as and by way of amendment to the table of fees.
This difference in stamp duty will have great bearing on intention of parties and give credence to claim of what was intended. Further it may have impact on jurisdictional issue between Small Causes Court under section 41 and 51 of Presidency Small Causes Court [refer to chapter VII] and section 24 of the New Rent Act when read with section 39, 41, 42 and section 24 being of a later Act and the non obstante clauses thereof especially in respect of Leave and License Agreement to be entered into after the new Rent Act for premises in new constructions.
As and by way of specimen of an Agreement of Leave and Licenses in outline is shown as mere guideline and it is emphasised that proper agreements be entered into with proper legal advise.
SPECIMEN OF LEAVE AND LICENSE AGREEMENT
This Agreement made at ___________ this _________day of ________ between ____________referred as "Licensor"] of one part and _________ [hereinafter referred to as "Licensee"] of the other part.
Whereas the licensor is seized and possessed of or otherwise entitled to the premises at __________ [referred hereto as the 'Licensed premises'].
Whereas the licensor has requested the licensee to allow him to use and occupy the licensed premises as licensee and the licensor has agreed to allow the licensee to use the premises as bare licensee and to occupy the same without any right title interest or claim in the licensed premises or to any right or interest of the licensor in the licensed premises;
And whereas the licensor has sufficient interest right or title in the licensed premises and to permit and allow the licensee to use and occupy the licensed premises as bare licensee in his personal capacity for use by him of the licensed premises for residential purpose;
And whereas the licensee is desirous of and represents that the use and occupation of the licensed premises by him small by in his personal right and shall be under a mere permission as licensee by the licensor and shall not amount of and shall not claim any right except as licensee or claim any protection of law under rent act or other law on the terms and conditions hereinafter provided.
NOW IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES AD LICENSOR AND LICENSOR AND LICENSEE HERETO AS FOLLOWS
This leave and license shall commence from the date of this Agreement and shall remain effective for a period 11 month from this date.
The licensor and licensee agree that the licensee shall use and occupy the premises under the permission of the licensor and shall not have or claim any tenancy or any other right title interest in the premises and shall always be constructed as permissive user as licensee only.
The licensee shall deposit Rs. ________ and keep deposited the said amount as security for the due observation and performance of this Agreement with and to the licensor.
The licensee during the subsistence of this present agreement shall pay all outgoing, expenses, and charges including for repairs.
The licensee shall cease to use and occupy the licensed premises and hand over the licensed premises without demur protest or objection to the licensor or expiry of 11 months from the date of executing this present Agreement for Leave and License.
The Licensee hereby agrees and convenants with and to the licensor that the licensee under no circumstances whatsoever transfer or assign in any manner whatsoever benefit of this presents to any other person and accepts and acknowledge that licensor has allowed licensee to use and occupy the licensed premises only and in no manner has granted any right interest in the licensed premises or any right to transfer or heritable right in respect of the licensed premises.
The licensee shall use and occupy the licensed premises for purpose of __________ only and in no manner cause nuisance, damage, disturbance annoyance inconvenience or interference to the occupiers of neighbouring premises.
The licensee shall not use the licensed premises for any illegal or immoral purpose or carry any activity or do anything, which constitute breach of any law.
The licensee agrees and undertakes to the licensor to indemnify and to keep indemnified against all losses claims damages arising from breach default of this presents by the licensee of any obligations convenants conditions thereof.
All notices communications shall be addressed to _____________ at the address __________ and shall be sufficient to ___________.
IN WITNESS WHEREOF THE PARTIES HAVE SUBSCRIBED SIGNED AND HEREUNTO SET THEIR HANDS THE DAY AND YEAR FIRST HEREIN ABOVE WRITTEN
Signed and delivered by
Signed and delivered by
This agreement made at ______ this ______ day of _______ between referred to as 'Licensor' of one part and __________ referred to as 'Licensee' of the other part.
WHEREAS the licensor is the owner of gala no / shop no. ______ and / or is seized and possessed of or otherwise entitled to the gala / shop situated at --------------hereto referred to as the licensed premises. The said gala / shop admeasures to _____ sq. ft. or thereabouts and has lofts / mezzanine together measuring to ----------- sq. ft.
WHEREAS the licensee requiring the said premises for business/manufacturing/ storage purposes requests the licensor to allow him to use, occupy the said premises as and by way of permissive user on leave and license basis for a period of 11 months only commencing from ----------------- day of 2001 only for the purpose of its business/manufacturing of -------------- during the term of the license.
WHEREAS on the request as aforesaid the licensor hereby allows the licensee to use/occupy the said premises as under a permission user on leave and license basis for 11 months without any right, title, interest or claim in the interest in the premises on the part of the licensee or claims any right, title or interest thereon under the Maharashtra Rent Control Act, on the terms and conditions as mentioned hereinbelow.
Now it is hereby agreed between parties hereto as follows,
The license is only a bare license and personal permission to the licensee to use the said premises without the exclusive physical possession for the purpose as stated hereinunder in accordance with terms and conditions as stated herein.
The license does not transfer any right, title or interest in the premises of the licensor to the licensee except that the licensee is a mere licensee and is permitted to use the premises as agreed.
The licensee does not in any way detract from the licensor remaining as absolute unconditional owner of the premise and shall continue to be absolute owner during the subsistence of the license and the licensee remains a mere user of the premises for the purpose agreed without any exclusive possession or having any right, title or interest in the premises.
The licensee agrees that the compensation agreed to is reasonable and proper as license fee for permitted user of the premises and agrees that he shall not make any grievances/complaints/procedures for there is no scope for any change in the compensation during or after the duration of the license is agreed to be the fundamental condition for this present license.
The licensee shall bear and pay all actual like electricity bills, deposits or other expenses for use of power/water on and further charges in addition to the compensation forthwith on being submitted the bills to the licensor by the licensee.
The licensee agrees and covenants and gives undertaking to the licensor that in no way will the licensee make or take proceeding seeking or praying for right, title, or interest of the licensor in premises nor would claim any revision/reduction of compensation and actuals as agreed to be paid by him nor will he use the premises for purpose other then the agreed purpose nor would he do, perform or claim any right not in consonance with the permissive user of the premises or seek to vary, alter or exercise any power or right regarding the premises which are inconsistent or derogatory of the rights of the licensor as absolute owner.
Notification dated the 8th June, 2000
Revenue and Forest Department
Mantralaya, Mumbai 400 032
Registration Act, 1908
No. RGN. 2000/2120/CR-592/M-1. - In exercise of the powers conferred by sections 78 and 79 of the Registration Act, 1908 (XVI of 1908), in its application to the State of Maharashtra, read with sub-section (1) of section 55 of the Maharashtra Rent Control Act, 1999 (Mah.XVIII of 2000), the Government of Maharashtra hereby further amends, with effect from the date of issue of this notification, the Table of fees prepared under the said section 78 and published under the Government Notification. Revenue Department, No.RGN. 1558/677731-N, dated the 17th July 1961, as required by the said section 79, as follows, namely :-
In the said Table of fees, after Article III, the following Article shall be inserted, namely:-
"IIIA. For the registration of a document of agreement of leave and licence, if such document is relating to the property situated,-
(a) in the area of limits of a -
Municipal Corporation … … Rupees 1,000
(b) in any other area … … Rupees 500"
(M.G.G., Extraordinary No. 135, Part IV-B, at Page No.528, dated the 15th May 2000)
No. Mudrank/2000/CR583/M-I.- In exercise of the powers conferred by clause (a) of section 9 of the Bombay Stamp Act, 1958 (Bom. LX of 1958), (hereinafter referred to as "the said Act"), the Government of Maharashtra hereby remits the Stamp Duty chargeable under Articles 6, 25, 33, 36, 40 and 54 in Schedule I to the said Act on the instruments executed by any person for starting a "New Industry" in the districts of Nagpur, Wardha, Bhandara, Gadchiroli, Gondia, Chandrapur, Amravati, Yavatmal, Akola, Washim and Buldhana during the period commencing on the 1st April, 2000 and ending on 31st March 2001 (both days inclusive).
Explanation. - For the purpose of this notification, " New Industry" Means an Industrial Unit, which certified to be a "New Industry" by the Director of Industries or any Officer authorised by him in this behalf.
(M.G.G., Extraordinary No. 136, Part IV-B, at Page No.530, dated the 15th May 2000)
No. RGN.2000/CR-583/M-1.- In exercise of the powers conferred by section 78 and 79 of the Registration Act, 1908 (XIV of 1908), in its application to the State of Maharashtra, the Government of Maharashtra, hereby amends the Table of Fees, Published under Government Notification, Revenue and Forest Department, No. RGN.1558/67731/N dated the 17th July 1961 as following Note shall be added, namely:-
In the said table, in Article 1, after Note 47, the following Note shall be added namely:-
“Note-48:-No registration fees shall be payable in respect of registration of any deed of Conveyance, Lease or Mortgaged by any person if such instrument is executed during the period commencing on the 1st April 2000 and ending on the 31st March 2001 (both days inclusive) for starting a New Industry in the districts of Nagpur, Wardha, Bhandara, Gadchiroli, Gondia, Chandrapur, Amravati, Yavatmal, Akola, Washim and Buldhana.
Explanation. - For the purpose of this notification, " New Industry" Means an Industrial Unit, which certified to be a "New Industry" by the Director of Industries or any Officer authorised by him in this behalf.
(M.G.G., Extraordinary No. 133, Part IV-B, at Page No. 524, dated the 15th May 2000)
No. Mudrank. 2000/CR-583/M-1 In exercise of the powers conferred by clause (a) of section 9 of the bombay stamp act , 1958 (Bom. LX of 1958), (herewith referred to as "the said Act"). The Government of Maharashtra hereby remits the Stamp Duty chargeable under the articles 6, 25, 33, 36, 40 and 54 in Schedule I to the said Act on the instruments executed by any person for starting a "New Industry" in the districts of Aurangabad, Osmanbad, Latur, Jalna, Parbhani, Nanded, Beed and Hingoli, during the period commencing on the 1st April 2000 and ending on 31st March 2002 (both days inclusive).
Explanation. - For the purpose of this notification, "New Industry" means an industrial Unit which is certified to be a "New Industry" by the Director of Industries or any Officer authorised by him in this behalf.
IMPORTANT NOTIFICATION OF THE BOMBAY STAMP ACT, 1958
1. 1. Notification u/s. 9(1) of the Bombay Stamp Act, 1958, dated 5th March, 2001
( Exemption to Amalgamation of Companies of Information Technology)
Revenue and Forests Departments
Mantralaya, Mumbai 400032, dated the 5th March, 2001
(M.G.G. Extraordinary No. 68, Part IV-B, at Page No 270,
dated 5th March, 2001)
No. Mudrank.2000/CR-1026-M-1 - In exercise of the powers conferred by clause (a)
No. Mudrank.2000/CR-1026-M-I.- In exercise of the powers conferred by clause (a) of section 9 of the Bombay Stamp Act, 1958 (Bom. LX of 1958) (hereinafter referred to as "the said Act"), the Government of Maharashtra being satisfied that it is necessary so to do in the public interest, hereby reduces with effect from 1st April, 2000, the stamp duty payable on instruments of conveyance relating to properties involved in amalgamation of companies of Information Technology (Software, E-Commerce, Internet Infrastructure Services, etc.) to ten per cent of stamp duty chargeable under clause (da) of article 25 in the Schedule appended to the said Act.
Explanation, - For the purpose of this Notification, "Company of Information Technology" means a Company which is certified to be a Company Information Technology by the Development Commissioner (Industries) or any other officer authorised by him in this behalf.
2. Date of effect Notification of the Maharashtra Tax Laws (Levy and Amendment) Act, 2001 (Mah. XXII of 2001) dated 30th April, 2001
Mantralaya, Mumbai 400 032, dated the 30th April, 2001
Maharashtra Tax Laws (Levy and Amendment) Act, 2001
No. BUD. 31.01/CR-58/Taxation-I. - In exercise of the powers conferred by sub-section (2) of section 1 of the Maharashtra Tax Laws (Levy and Amendment) Act, 2001 (Mah. XXII of 2001), the Government of Maharashtra hereby appoints the 1st May, 2001 to be the date on which provisions of sections 1 to 6, 8, 11 to 14, 15(b) and (c), 16(a), 17(A) (i) and (ii), 17(B), 19, 20, 24(d) and 25 of the said Act shall come into force.
THE BOMBAY STAMP ACT, 1958 [BOMBAY ACT NO. LX OF 1958]
This Act received the assent of the President on 4th June 1958, and assent was first published in the Bombay Government Gazette , Part IV, on the 11th June, 1958.
An Act to consolidate and amend the law relating to stamps and Stamp duties in the State of Bombay
Amended by Bom. 95 of 1958.
Adapted and modified by the Maharashtra Adaptation of Laws (State and Concurrent Subjects) Order, 1960.
Amended by Mah. 10 of 1960
Amended by Mah. 17 of 1993 (1-5-1993)4
Amended by Mah. 31 of 1962 " " " 20 of 1994 (28-2-1994)4
Amended by Mah. 10 of 1965 " " " 29 of 1994 (1-5-1994)4
Amended by Mah. 29 of 1972 " " " 38 of 1994 (17-8-1994)4
Amended by Mah. 13 of 1974 (1-5-1974) 4 " " " 12 of 1995 (8-6-1995)4
Amended by Mah. 16 of 1979 (4-7-1980) 4 " " " 16 of 1995 (1-9-1995)4
Amended by Mah. 27 of 1985 (10-12-1985) 4 " " " 9 of 19975 (15-9-1996)4
Amended by Mah. 9 of 1988 (22-4-1988) 4 " " " 30 of 1997 (15-5-1997)4
Amended by Mah. 27 of 19882 (29-8-1988) 4 " " " 21 of 19986 (1-5-1998)4
Amended by Mah. 1 of 1989 (6-1-1989) 4 As Amended by 22 of 2001 (1-5-2001)4
Amended by Mah. 18 of 1989 (1-12-1989) 4 The Bombay Stamp (Amendment) Act,
Amended by Mah. 9 of 19903 (7-2-1990) 4 2001 w.e.f 1-1-2000
WHEREAS it is expedient to consolidate and amend the law relating to stamps and rates of stamp duties other than those in respect of documents specified in entry 91 of List I in the Seventh Schedule to the Constitution of India in the State of Bombay; It is hereby enacted in the Ninth Year of the Republic of India as Follows :-
1. 1. For Statement of objects and Reasons, see Bombay Government Gazette. 1958 Extra, Part V.p. 122.
2. 2. Maharashtra Ordinance No. VI of 1988 was repeated by Mah. 27 of 1998, s. 3(1)
3. 3. Maharashtra Ordinance No. II of 1990 was repeated by Mah. 9 of 1990, s. 4(1)
4. 4. This indicates the date of enhancement of Act.
5. 5. Mah. Ordinate No. XII of 1996 was repeated by Mah. 9 of 1997.
6. 6. Maharashtra Ordinance No. VI of 1998 was repeated by Mah. 21 of 1998.
? Act to consolidate - reflects the intention of the legislature to bring in all provisions relating to the subject matter and be exhaustive.
Constitutional position -
Law relates to stamps and stamp duties regarding documents other than those specified in Entry 91 of List I of Schedule VII of the Constitution. Specified documents are bills of exchange, promissory notes, bills of lading, letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts and the field relates to rates of stamp duties. List II empowers state to enact laws for rates of stamp duty in respect of documents other than specified in List I. Rates for stamp duties for specified documents in List I. Entry 91 can be prescribed by parliament and rates for stamp duties for other documents can be prescribed by State laws. Entry 44 List III empowers concurrently Parliament and State legislatures to make laws for stamp duties. Thus levy and charge of stamp duties can be imposed by both the Parliament and State legislatures subject to repugnancy and occupied field. Rates however have to be prescribed exclusively by Parliament for specified documents and by State legislatures in respect of other documents.
Thus the preamble indicates that the Act prescribes rates of stamp duty and levies stamp duties on documents as set out in the Act. Section 74 of the Act specifically excludes the documents as mentioned.
Scheme of the Act -
Section 3 is a charging section and provides for charging stamp duties on instrument and to that extend it levies duties on instrument and not on the transaction. The taxing events is when the instrument is executed in the State for the first time without being previously executed. Document as defined in Evidence Act means any matter expressed or described upon substance by means of letters, figures or marks or by more than one of those means intended to be used or which may be used for the purpose of recording that matter. Explanations to Section 62 of the Evidence makes each counterpart of a document to be primary evidence as mentioned and where document is executed in several parts each part is primary evidence of the document. Section 4 of the Bombay Stamp Act provides for specified documents executed in several parts and the duties chargeable thereon. Here the distinction made is between principal instrument and other instruments Sub-Section 4,5,6. Further duty is payable and has to be paid on the principal instrument and it is only when such duties are paid that other instruments can be received in the state having regard to Section 7. Section 8 provides for special rates on certain documents as mentioned.
Sub-section 10 prescribed the made of paying duties on instruments by user of stamps on such instruments. Sub-section 10 to 14 are machinery sections providing as to how the stamp duty is to be collected. Section 15 provides that when stamp duties are not paid as provided for then the instrument shall be deemed to be not duly stamped. Sub-section 17 to 19 prescribes the time when stamp duty can be said to be duly paid. Events prescribed are two-(1) When the instrument is executed in the State; (2) when the instrument though executed outside is brought into the State.
Sub-section 20 to 29 sets out as to how the instruments have be valued for the purposes of stamp duty. Sub-section 21 to 23, 25 prescribes how ad valorem stamp duties have to be valued. Sub-section 24,26, 17 provides for the valuation in cases as mentioned therein.
Section 28 prescribes that all matters must be mentioned in the instrument affecting chargeability of stamp duty.
Section 29 provides for apportionment of duties regarding separate parts of instrument among different persons.
Section 30 provides for persons liable to pay the stamp duties.
Chapter III Schedule 31 to 32C provides for adjudication.
Chapter IV deals with consequences and effect of instruments correctly stamped and not correctly stamped in particular it provisions for impounding of instruments and for inadmissibility of instruments not duly evidence. Penalty proceedings and prosecutions are provided for. Refund of penalty and excess duty are provided for in section 44 whilst section 46 provides of recovery of duties and penalties by distress and sale of movables or as arrears of land revenue as provided therein.
Chapter v makes provisions for allowances and the procedure for the same. Section 52B
Provides that stamps purchased have to be used within 6 months and if not so done or no allowances is claimed the same shall become invalid.
Chapter VI provides for references, revision and appeal against orders passed under the Act. procedure for offences and for penalties are provided in chapter VII. Chapter VIII contains supplemental provisions and inter alia in section 69 confers rule making power on state Government generally for purposed of the Act and for specifically provided subject. Rounding off of fractions (section 70) and delegation of power is provided for (section 72). Court fees are excluded as subject matter of the Act under Section 73. Schedule I mention of instrument and provides for the proper stamps duty as chargeable.
Perusing the above , it may be observed that stamp duty becomes an important source of revenue for the State affecting various transaction of individuals though it is duty levied on instruments meaning documents which creates rights or liability or transfers, limits, extends, extinguishes or records such rights or liabilities. Further generally speaking it is an indirect source of revenue though duty becomes payable by the parties to the documents qua the State.
Nothing the legislative history may be noted that Acts 27 of 1985, 18 of 1989, 17 of 1993,20 of 1994, ordinance 12 of 1996 did bring about changes of material nature in the Act as it stood enacted.
Further notes the provides relating to amnesty given in respect of instruments executed on and after 19.12.85 to 16.3.88 in the State off Maharashtra under Amnesty Scheme applicable as between 1.4.94 to 30/9/94 in relation to residential premises in cooperative housing society or under Ownership Flats Acts to the extent of rates as applicable under Article 25(d) to Schedule 1. For Getting amnesty what is required is (a) to make an application with instrument in original with xerox copies as required and with stamp affixed of 65 paise; (b) along with affidavit as prescribed in form as given. All details regarding location of property , ward number, number of storeys, year of construction . area of flat required to be stated in the application made to the collector of Stamps. Market value then will be ascertained. This concept of market value was brought in Amnesty Act, 1979.
Occupying house or premises or flat as owner or member of a cooperative society or of a condominium or land deals and building construction activity bring in their wake several documents affecting rights and liabilities of individual as well as legal personalities they are involved with.
Similarly share transactions , corporate formations, mergers and movements get regulated by Companies Act securities contracts ( Regulation) Act, SEBI Act and the latest being the Depositories Act, 1996 and similar other Acts widening the scope for bringing into existence several documents affecting rights and liabilities of individuals involved.
It is in this context and system that the revenue collection through Stamp Act operates and its knowledge and understanding become significantly vital to avoid the instruments being inadmissible in evidence. Impounded or being invalid. Stamp Act levies and exemptions have been widened in scope, definition. Concept and rate requiring its knowledge to be part of legal equipment.
"Indirect Impact on Value of Property - it has now to be understood and appreciated that having regard to Articles 2(g) 8, 25, 36, newly added Articles 36A and provisions in Chapter III read with Bombay stamp (Determination of True Market Value of Property) Rules and Use of standerdised rent values areawise or of ready reckoner by authorities add a dimension to values of property especially in metropolitan areas. A further to be noted is added by operation of the new Rent Act whereby certain properties / premises are exempted by virtue of Section 3 of Maharashtra Rent Control Act, 1999. It is these exempted categories of premises that rent can be fixed at higher denominations which may have no bearing to standard rent concepts envisaged in rent laws. Such exempted premises thus fetches high rents enhancing the rateable value of the property as may be chargeable by local authorities. Links with cut off dates may not strictly apply and in that sense the change in provisions of law may result in change market trends which may make holding of property well nigh difficult especially in metropolis.
25. CONVEYANCE (not being a transfer charged or exempted under Article 59) -
On the [True market value] of the property Which is the subject matter of the Conveyance. -
|1992 2 Bom LR 1 [ Kurdukar & Sukumaran JJ.) State of Maharashtra v. Mahavir.
In the 3 appeals and other connected writ petitions before the court a common question arose as to the liability to pay stamp duty under Entry 25 of Schedule I of the Bombay Stamp Act, 1958 in respect of flats governed by Maharashtra Ownership Act, 1970 and agreements in respect thereof under Section 4 thereof and under Maharashtra Apartment Ownership Act, 1970. The agreement contained in the instrument to be stamped were between Builder - Developer and Purchasers. While registering the agreement as required under the Act, the instruments were impounded and were referred and sent to Superintendent of stamps. In the reference the question as to the true value was to be determined under the relevant rules for Market Value Determination Rules of 1981 under a show cause notice issued on ground of underValuation. A wirt petition however was filed in the meanwhile. Interim orders passed and order constituting special bench were impugned before the Court. In the context of the above, the Court examined several causes of the agreement and the particulars as required under section 4(1A) of MOFA it was found that the Agreement contained certain new terms and conditions as incorporated therein. Terms relating to the agreement not to be deemed inter alia to be a conveyance, demise etc. And of purchaser not to transfer, sublet etc. Were returned to with emphasis.
The Court Receiver held that on construction it is effect and substance a conveyance failing under section 2(g) of the stamp Act and is dutiable under Explanation I to Article 25 Schedule I.
1. 1. These words were substituted by the words "market value" by Mah. 9 of 1988. S. 38©, (w.e.f. 17-3-1988)
1. Validation of duty levied and collected..
1. (1) Notwithstanding anything contained in any judgement, decree or order of any court the contrary or in the Stamp Act, Stamp duty assessed., levied and collected including any action in pursuance of such assessment, levy and collection by the authorities under the said Act, acting or purporting to act provisions of article 25 in the Schedule I to the Stamp Act shall be deemed to have been validly levied and collected in accordance with law as if the provisions of the said article 25, as amended by the Maharashtra Tax Laws (Levy, Amendment and Validation) Act, 1997, had been continuously in forrce at all material time and accordingly :-
1. (a) all actions, proceedings or things done or taken by the authorities under the Stamp Act in connection with the levy and collection of the stamp duty shall, for all purpose, be deemed to have been done or taken in accordance with the provisions of thee said Act.
2. (b) No suit or other proceedings shall be maintainable or continued in any court, against the said authorities for the refund of the stamp duty so levied and collected.
3. (c) No court or any other authority shall enforce any decree or order directing the refund of the stamp duty so levied or collected.
2. (2) For the removal or doubt, it is hereby declared that nothing in sub-section (1) shall be constructed as preventing a person -
1. (a) from questioning in accordance with the provisions of the Stamp Act as amended by this Amendment Act, any assessment, reassessment, levy or collection of stamp duty referred to in sub-section (1) or
2. (b) from claiming refund of any stamp duty paid by him under the Stamp Act, in excess of the due from him by way of stamp duty under the said Act, as amended by this Amendment Act.
(The Mah. Tax Laws (Levy, Amendment and Validation ) Act 30 of 1997.s 9, (w.e.f 15-5-1997)
|1972 3 SCR 332 Himalaya House Co. Ltd. V. Chief Controlling Revenue Authority distinguished as the said case was under Indian Stamp Act and without rules whilst in the case before the court value is determined in terms of rules.
Article 25 held to be constitutionally valid "sale" in entry 48 is not to be constructed in popular sense but must be interpreted in legal sense.
a) If relating to moveable property, for Fifteen rupees. every rupees 500 or part thereof;
|See reduction as Order No. STP/094/CR 369/CC) M-1 dt. 11-5-94 regarding instrument of security of Loan of Assignments, Instrument of Assignment of Receivables in respect of use of credit cards.
(b) If relating to immovable property situated Thirty - Five Rupees.
within the limits of -
1[(i) any rural area, falling within the limits of the Bombay Metropolitan Region as defined in clause
(b) of section 2 of the Bombay Metropolitan Region Development Authority Act, 1974 , for every rupees
500 or part thereof;
2[(i-a) any rural area, excluding the rural area referred to in sub-clause (i) -
1. (A) if such property is residential, for every Five Rupees. rupees 500 or part thereof.
3[(B) if such property is an irrigated land Twenty - Five Rupees.
Included in the benefitted zone within the meaning of clause (5) of section 2 of the Maharashtra Project Affected Persons Rehabilitation Act, 1986, for every rupees 500 or part thereof;
1. 1. Sub-clauses (I), (ii), (iii), (iv) and (v) were substituted by Mah. 29 of 1994, s.3(4), (w.e.f. 1.5.1994).
2. 2. Sub-clause (I-a) was substituted by Mah. 16 of 1995, s. 3(1) (a), (w.e.f 1-9-1995)
3. 3. Entries (B) and (c) were substituted for the entry (B) by the Mah 30 of 1997, s, 8(1)(a),(w.e.f.15-5-1997)
Prior to substitution read as under:-
[ (B) if such property is non residential, for every rupees 500 or part thereof fifteen rupees]
(C) if such property is non-residential property other than the property referred to in entry (B) above, Fifteen rupees.] for every rupees 500 or part thereof;
ii) 'C' class Municipal Councils (Other than those of Twenty rupees. such Municipal Councils falling within the limits of
the Bombay Metropolitan Region), Hill Station Municipal Councils [other than those referred to in entry (ii) of sub-clause (iv-a), and Cantonments, if any, adjacent to such Municipal Councils, for
every rupees 500 or part thereof;
iii) 'B' Class Municipal Councils (excluding Lonavala Twenty - Five rupees. Municipal Council and the areas of those of such Municipal Councils failing within the limits of the Bombay Metropolitan Region) and Cantonment of Kamptee, for every rupees 500 or part thereof.
(iv) 'A' Class Municipal Councils excluding the areas Thirty rupees. of those of such Municipal Councils failing within the limits of the Bombay Metropolitan Region but including Cantonment of Ahmednagar, for every rupees 500 or part thereof.
1[(iv-a) (i) Lonavala Municipal Council; Fifty rupees.
(ii) Mahableshwar Hill Station Municipal Council, Fifty rupees. Panchgani Hill Station Municipal Council, Panhala Hill Station Municipal Council and Matheran Hill Station Municipal Council, for every rupees 500 or part thereof;
(v) Municipal Corporations [excluding those Fifty rupees Municipal Corporations and other areas referred to in sun-clause
(iv)], the 'A', 'B' and 'C' class Municipal Councils Forty rupees falling within the limits of Bombay Metropolitan Region and Cantonment of Devali, Dehu Road and Aurangabad, for every rupees 500 or part thereof.
(vi) (a) Municipal Corporation of Greater Bombay Fifty rupee and,
1. (b) Municipal Corporation of the cities of -
1. (i) Pune, including the Cantonments of Pune And Kirkee.
(ii) Thane, including 1[Local areas within the limits of revenue villages of Uttan, Dongaries Rai Murdhi, Bhinder,Mire, Kashi, Ghodbunder Versava, Chene, ovale, Wadavali, Kaversar, kolshet Balkum, Borivade, Majiwada, Chitalsar, Manapada, Chendani, Panch-pakhadi and Yeour;]
2[(iii) Navi Mumbai,- For every rupees 500 Or part thereof;]
2. (c) if relating to both movable and The same duty as is payable under immovable property. Clause (a) and (b).
3[(d) (1) if relating to residential premises consisting of building or unit---
1. (A) by, or in favour of a co- operative housing society registered or deemed to have been registered under the
maharashtra co- operative societies Act,1960 (Mah. XXIV of 1961); or
2. (B) to which the provisions of the Maharashtra Ownership Flats (Regulations of Promotion of Constructions, Sale, Management and Transfer ) Act,1963 , (Mah.XLV of 1963) or the provisions of the Maharashtra Apartment Ownership Act,1970, (Mah. XV of 1971 ) apply; or
(C) By such society in favour of it's member 1[or in coming member] (Whether in consequence of purchase of its shares or not), or
(D) By a member of such society in favour of another member 2[or in coming mem-ber] (Whether in consequence of transfer of its shares to another member or not);
3[and the value of which
(i) Does not exceed rupees 1,00,000. Nil.
(ii) exceeds rupees 1,00,000 but does 0.5 percent of the value not exceed rupees 2,50,000.
(iii) exceeds rupees 2,50,000 but does 1,250 rupees plus 3 percent of the not exceed rupees 5,00,000. value Above rupees 2,50,000.
(iv) exceeds rupees 5,00,000 but does 8,750 rupees plus 6 percent of the not exceed rupees 10,00,000. value Above rupees 5,00,000.
(v) exceeds rupees 10,00,000. 38,750 rupees plus 8 percent of the value above rupees 10,00,000