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When
a document is
liable to be
stamped?
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All
documents
chargeable
with duty
and executed
in India shall
be stamped
before or
at the time
of execution. |
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What is the
stamp duty payable
on a general
power of attorney
given to family
members? |
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A
general power
of attorney
authorizing
the agent to
construct or
develop or sell
any immovable
property is
chargeable with
stamp duty at
5% on the market
value of the
property, even
if it is given
to a family
member. |
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What is the
stamp duty payable
on agreement
to sell?
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There
are two types
of agreements
to sell immovable
property.
In one case,
possession
of the property
is delivered
to the purchaser.
In the other
case, the
agreement
is a simple
agreement
without delivery
of the possession
of the property.
When possession
of the property
is given
through
an agreement
to sell,
stamp duty
is payable
at 8% if
the property
is situated
in any Municipal
Corporation,
at 7% if
it is in
any special
grade or
selection
grade municipality,
and at 6%
in other
areas. The
duty is
calculated
on the Market
Value of
the property.
(Art 47A
of Schedule
I-A)
An agreement
to sell,
under which
possession
of the property
is not given
is chargeable
to stamp
duty at
5% of the
market value
of the property
uniformly.
(Art 6(B)
of Schedule
I-A).
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What is the
transfer duty
payable on an
agreement to
sell where possession
of the property
is delivered?
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The
transfer duty
is not payable
on any agreement
to sell, whether
possession of
the property
is given or
not.
As per the
provisions
of the local
bodies Acts,
the transfer
duty is leviable
only on sale,
exchange,
gift, mortgage
with possession
and lease
in perpertuity
of immovable
property at
5% on the
market value
of the property
uniformly.
No other instrument
attracts the
transfer duty.
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Is
there any concession
in any form
in the stamp
duty payable
on (I) sale
deeds executed
in pursuance
of agreements
of sale; (ii)
sale deeds executed
by an agent
under G.P.A;
and (iii) sale
deeds executed
in favour of
persons nominated
by an agreement
– holder?
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The
stamp duty
paid on agreements
of sale can
be adjusted
towards stamp
duty payable
on sale deeds
executed in
pursuance
of such agreements.
This facility
is also available
in the case
of sale deeds
executed in
favour of
persons nominated
by the agreement-holder.
[Art 47A of
Schedule-I
(A)].
The stamp
duty paid
on general
powers of
attorney
cannot be
adjusted.
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Is
there any provision
for refund of
the stamp duty
paid on any
agreement in
the event of
failure of the
transaction? |
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There
is no provision
for refund
of stamp duty
in such cases.
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What
is the stamp
duty payable
on general powers
of attorney
executed in
A.P. in respect
of the property
situated in
the other states? |
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In
such cases,
stamp duty
is payable
at 5% on the
value of the
property as
declared by
the party
in the document. |
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Suppose
a document is
executed outside
A.P. on a stamp
of the value
lesser than
that required
in A.P, is it
valid in A.P.? |
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Yes.
As soon as
such a document
is received
in A.P., the
difference
of the stamp
duty as is
required to
make up the
deficiency
(with reference
to the rate
in A.P.) should
be paid under
Section 19-A
of the Stamp
Act. Then
the document
is valid in
A.P. |
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Is
any document
executed outside
the country
on the stamp
papers purchased
in A.P. valid
in A.P. and
can it be presented
for registration
by an agent
under a special
power of attorney
executed before
and attested
a notary? |
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Yes.
Any document
executed by
a citizen of
India residing
out of India
on the stamp
papers purchased
in A.P. is valid
in A.P. It can
be presented
for registration
by an agent
under a special
power of attorney
executed abroad
before and authenticated
by a Notary
Public, or any
Court, Judge,
Magistrate,
Indian Consul
or Vice-Consul,
or a representative
of the Central
Government.
The special
power of attorney
so executed
attracts a stamp
duty of Rs.20
on its presentation
before Collector
for validation
in times of
Section 18 of
IS Act. |
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What
is to be done
when stamps
of required
denomination
are not available?
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Document
can be got prepared
on a white paper
of durable quality
and the requisite
stamp duty can
be paid in cash
with the permission
of the Collector
under Section
10-A of the
Stamp Act.
The parties
can present
it to the
Collector
under Section
41, and pay
the duty and
get such payment
endorsed on
the instrument.
The stamp
duty can be
paid by challan
under the
head of account
" MH
0030 Stamps
and Registration
– 02
Stamps –
Non- Judicial
– 103
Duty on Impressing
Stamps. "
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Suppose
a document is
executed on
a white paper
or is insufficiently
stamped by oversight
and one year
elapsed. What
is the disadvantage
if proper duty
is not paid?
Is there any
provision to
pay the proper
duty? |
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Any
document, on
which the requisite
stamp duty is
not paid, is
not admissible
in evidence.
It is liable
to be impounded
by any public
officer or court
before whom
it is produced
or whenever
it comes before
them in the
course of discharge
of their duties.
Every such document,
after it is
impounded, should
be sent to the
Collector for
adjudication.
The Collector
is empowered
to determine
and collect
the proper duty
or the deficit
duty, payable
thereon along
with a penalty
not exceeding
ten times the
proper duty
or the deficit
duty, as the
case may be.
The Collector,
on payment of
the deficit
duty and the
penalty, adds
a certificate
to that effect
on the original
document. Only
then the document
will be received
in evidence.
Courts are
also empowered
to adjudicate
the documents
but they have
to levy a
penalty of
ten times
the deficit
duty whereas
the Collector
has discretion
to levy penalty
less than
ten times,
keeping in
view the circumstances
under which
the document
was deficitly
stamped.
This procedure
of adjudication
is not applicable
to the promissory
notes and
bills of exchange.
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On
some documents
like sale deeds,
gift deeds,
etc., stamp
duty is payable
with reference
to the market
value of the
property. The
Department is
preparing the
guideline values.
If the party
feels that such
guideline values
are on higher
side and is
not willing
to pay stamp
duty on such
market value,
what is the
alternative
left to registering
public? |
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Any
person, who
is not willing
to pay stamp
duty on the
market value
as suggested
by the Registering
Officer, can
have his case
referred to
the Collector
under Section
47-A of the
I.S. Act, 1899
for determination
of the market
value and the
proper duty
payable thereon.
For this purpose,
such party is
bound to deposit
50% of the deficit
duty with reference
to the market
value as arrived
at by the Registering
Officer. The
case will be
referred to
the Collector
only after the
amount has been
deposited. This
deposit will
be either adjusted
towards the
deficit duty
or refunded
to the party,
depending upon
the orders of
the Collector.
Registration
of the document
will be kept
pending till
this process
is over. The
District Registrars
are declared
as collectors
under section
47-A. |
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Is
Collector’s
decision final
with regard
to the nature
of the document
and the stamp
duty payable
thereon? |
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Insofar
as the orders
of the Collector
under Section
47-A are concerned,
an appeal lies
to the Sub-Court
having jurisdiction
over the area,
within two months.
However, the
entire amount
of the deficit
duty as determined
by the Collector
has to be deposited
before filing
the appeal.
In all other
cases appeal
lies to the
Chief Controlling
Revenue Authority
(Commissioner
& I.G.
of Registration
& Stamps,
1-7-10,N.B.K.
Estate, Musheerabad,
Chennai-500
020.) under
Section 56
of the Stamp
Act.
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Some
of the States
like Maharashtra
have prescribed
concessional
rates of stamp
duty on sale
deeds pertaining
to apartments.
What is the
position in
A.P.? |
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In
the State of
A.P. also, the
following concessional
rates of stamp
duty have been
prescribed for
the sale deeds
of apartments,
under Article
47-A (d) of
Schedule I-A
to the Stamp
Act. These rates
are applicable
to the apartments
situated within
the jurisdiction
of the Urban
Development
Authorities
of Visakhapatnam,
Vijayawada,
Guntur, Tenali,
Chennai; and
all Municipal
Corporations
and Municipalities.
There is no
concession in
transfer duty
and registration
fee. |
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Where
the value does
not exceed Rs.2,00,000
Rs.12,000 |
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Where
it exceeds Rs.2
lakhs but does
not exceed Rs.3.5
lakhs. Rs.12,000
+ 4% on the
value above
. Rs.2 Lakhs
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Where
it exceeds Rs.3.5
lakhs but does
not exceed Rs.7
lakhs. Rs.18,000
+ 6% on the
value above
Rs.3.5 lakhs
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Where
it exceeds Rs.7
lakhs Rs.39,000
+ 8% on the
value above
Rs.7 lakhs. |
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Is there any
provision for
refund of stamps
spoiled or misused?
Who is competent
to sanction
such refund
and what is
the procedure?
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Yes.
The Sections
49, 50 52, 53
and 54 of the
Stamp Act provide
for refund of
the spoiled
or misused stamps;
stamps used
in excess of
the value required;
and stamps not
required for
use. The valid
reasons for
allowing refund
of stamps are;
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stamp on any
paper inadvertently
and undesignedly
spoiled, obliterated
or by error
in writing or
any other means
rendered unfit
for the purpose
intended before
any instrument
written thereon
is executed
by any person;
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stamp on any
document which
is written out
wholly or in
part, but which
is not signed
or executed
by any party
thereto; |
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In the case
of bills of
exchange payable
otherwise than
on demand or
promissory notes-
The stamp on
any such bill
of exchange
signed by or
on behalf of
the drawer which
has not been
accepted or
made use of
in any manner
whatever or
delivered out
of his hands
for any purpose
other than by
way of tender
for acceptance;
provided that
the paper on
which any such
stamp is impressed
does not bear
any signature
intended as
or for the acceptance
of any bill
of exchange
to be afterwards
written thereon;
The stamp
on any promissory
note signed
by or on behalf
of the maker,
which has
not been made
use of in
any manner
whatever or
delivered
out of his
hands;
The stamp
used or intended
to be used
for any such
bill of exchange
or promissory
note signed
by, or on
behalf of
the drawer
thereof, but
which from
any omission
or error has
been spoiled
or rendered
useless, although
the same being
a bill of
exchange may
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Buyers
/ Sellers 
