The Maharashtra (Bombay) Stamp Act, 1958 comes into force on 16th February, 1959 and is applicable in the State of Maharashtra. This Act is intended to levy Stamp duty on certain types of documents executed in the State or brought from outside for acting upon the same in the State. The various instruments/documents are broadly covered under different article 62 listed in Schedule-I appended to the Act. The rates at which Stamp Duty is levied on those documents are mentioned in Schedule I of The Maharashtra (Bombay) Stamp Act, levies Stamp duty on documents / instruments by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded. The stamp duty is payable on instrument and not on the transactions.
The stamps are generally categorized as Postal stamps and Non-Postal stamps.
Postal stamps are used for transaction with Post Offices and related functions.
01. Judicial Stamp
Judicial Stamp Paper are used for transactions with judiciary.
Denominations: Rs.20, 50, 100, 500, 1000, 5000 and 25000/-.
Usage: Payment of Stamp duty in respect of Transactions with Civil and Criminal Courts.
02. Non Judicial Stamp
Non Judicial Stamp Paper are used for paying tax on transactions.
Denomination: Rs. 20, 50, 100, 500, 1000, 5000, 10000, 15000, 20000, 25000
03. Impressed Stamp / Special Adhesive Stamp (Label)
Two kinds of stamp for indicating the payment of Stamp Duty.
a) Impressed Stamp
i. Labels affixed and impressed by the proper officer.
ii. Stamps embossed or engraved on stamped paper.
iii. Impressions by Franking Machines.
iii. Impressions by Franking Machines.
w.e.f. 19/05/1995 :- Franking of Documents was started at Genral Stamp Office, Mumbai. FRANKING is an alternative to pay stamp duty, due to no availability of Non Judicial Stamp Papers.
A mark applied instead of stamps to indicate that the amount of tax has been paid, Impressions by franking machines, is in RED INK .
A special security ink is used to print stamps this can be detected with a Fluorescent UV Lamp. When you shine the light on the stamp,
the security marks on paper will glow in red fluorescence color these are used to sort the forgery. b) Special Adhesive Stamps
iii. Special Adhesive Stamp are label.
04. Court Fee Stamps
Court Fee Stamps are generally used by public and other departments for correspondence with Government Departments / Offices, Registration Office, Police Station, Revenue Offices, etc.
05. Revenue Stamps
Revenue stamps are widely used by all section of the society especially involving payment of money.
The are two types of Stamps Papers which are mainly used in India
It is a type of tax which has to be paid for the transaction performed by way of document or instrument under the provisions of Bombay Stamp Act, 1958 and Indian Stamp Act, 1899.
Stamp duty is payable on instruments and not on transactions. The definition of the term instrument is very wide.
Instrument means any document by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded.
As defined in The Indian Evidence Act, 1872, document means only matter expressed or described upon substance by means of letters, figures or marks or by more than any of those means intended to be used or which may used for the purpose of recording that matter.
The payment of proper Stamp duty on instruments bestows legality on them. Such instruments get evidential value and are admitted in evidence in Court of law. The instruments which are not properly stamped are not admitted in evidence.
The following Articles of The Indian Stamp Act, 1899 attract Stamp duty in the state of Maharashtra
The following Articles of The Indian Stamp Act, 1899 attract Stamp duty in the state of Maharashtra.
As per the Article 5(h) on Rs.5/- Adhesive Stamp or Stamp Paper.
LETTER
No. 5 / Stamp Duty 06 / Letter. No. 58/06/1224
As per Article 62 articles of Schedule I of Bombay Stamp Act, 1958 are grouped in three categories.
The Section 17 & 18 of the Bombay Stamp Act, 1899 states the time of payment stamp duty. Generally all the instruments executed in the state shall be stamped before or at the time of execution or immediately thereafter or on the next working day following the day of execution. Similarly, the instruments which is executed out of the state and within three months from its receipt in the state, shall be stamped.
Earlier the Stamp Duty was calculated by the Town Planing and Valuation Department, Government of Maharashtra. w.e.f. 01/03/1990 The Government of Maharashtra introduce the concept of True Market Value by publishing (Annual Statement Rate / Bazar Mulaykant Takta / Ready Reckoner for charging Stamp Duty. True Market Value means the values of the property in the Open Market or the amount of consideration mentioned in the document whichever is higher.
Stamp Duty has to be paid on True Market Value or on the amount of consideration mentioned in the document whichever is higher.
The Sub Registrar in whose jurisdiction is said property is located has to be contacted to ascertain the True Market Value.
The parties can ask the Sub Registrar to refer their case to the Collector of the district for determination of true market value and it is binding on the Sub Registrar to do so.
The collector issues notices to the parties, allows them to produce evidence, grants them hearing, some time he even does site inspection and finally devised the True Market Value of the property which is accordingly informed to the parties.
The parties can go in appeal to the Deputy IGR (Deputy Inspector General of Registration ) and Dy. Controller of Stamps of the region u/s 32B of the Bombay Stamp Act 1958.
Decision given by the DIG is binding on the parties. There is no provision of appeal or application for revision against this order.
Stamp Duty can be paid by
As per the provisions of Section 30 the onus of payment of Stamp duty in the absence of an agreement to the contrary, shall be borne by the
executing in the manner provided their with respect of certain kinds of documents viz. Mortgage deed, release, security bond, settlement, bond
etc. in the case of conveyance, the grantee and lease the lessee shall pay the stamp duty in the case of exchange of property, both the parties
in equal share shall pay stamp duty. In case of partition, the parties thereto in proportion to their respective shares should pay stamp duty.
Under Section 31, of Bombay Stamp Act, 1958. deals with the adjudication of the instruments. Adjudication means determining
the charge ability of stamps duty on instruments.
The Document which is chargeable with Stamp duty can be prepared on the non-judicial Stamp paper of appropriate value. unexecuted document can be got franked with special adhesive Stamps by Franking Machine intended for stamping such documents, by tendering required amount in the office of collector of Stamps wherever this facility is available. When documents is lodged for adjudication, on receiving intimation as to the amount of Stamp duty payable by tendering appropriate amount equal to the amount of Stamp duty and penalty if any, the Collector of Stamp shall certify the document as to the payment of proper duty.
w.e.f. 01/12/1989 the validity of stamp paper is 6 months only.
The documents if not duly stamped, shall not be admissible in evidence in the court of law. As per the provision of Section 59, any person who, with the intention to evade the Stamp duty, executes or signs any instruments chargeable with stamp duty, without the same being duly stamped, shall on conviction, be punished with rigorous imprisonment for term which shall not be less than one month but which may be extended up to six months and fine up to Rs. Five Thousand. The Section 67 and 68 empowers the authorities to enter upon any premises and to inspect and impound/seize the documents which are not duly stamped and burden is casted upon every public officer to assist the authorities in detection of evasion. The documents impounded for want of proper duty, attracts penalty @ 4 % per month (w.e.f : 27/04/2015) from the date of execution of such document miscellaneous.
w.e.f. 01/05/1994 The stamps are required to be purchased in the name of one of executors signing the instrument.
Such instruments are not admitted in evidence, for any purpose. These instruments are also treated as not properly stamped. These instruments are liable to be impounded and sent to the Collector of Stamps for recovery of proper stamp duty.
The rates of stamp duty on instruments relating to transfer of immovable property vary from place to place. The rates are specified in Article 25 of Schedule I of the Bombay Stamp Act, 1958. However, (w.e.f : 25/04/2012) Article 25 (b)(d) which deals with the instruments of transfer of residential premises in Co-operative Housing Society or where the provisions of Maharashtra Ownership Flats Act 1963 and the Maharashtra Apartment Ownership Act, 1970. In areas, where the provisions of the aforesaid Acts. Instruments relating to the transfer of land, residential, (commercial) office, Shop and Industrial premises of market value or agreement value attract stamp duty for values as applicable in that area. Such normal rates are 5 %, 4%, and 3 %. depending on where the property is situated.
In addition to recovery of deficit Stamp duty in such cases, the concerned party is required to pay penalty of Rs. 250/- plus 15 % interest for each year or part of the year on the deficit amount from the date of presentation of instrument before the Sub-Registrar.
The parties can go in appeal to the Chief Controlling Revenue Authority, Maharashtra State, Pune. Under section 32 B of Bombay Stamp Act, 1958.
The charge-ability of stamp duty on the instrument as determined by the Collector of Stamps is not final. The person affected by the order of the Collector of Stamps can go in appeal to the Chief Controlling Revenue Authority, Maharashtra State, Pune as provided in section 53 of the Bombay Stamp Act, 1958, limit prescribed for the filing of an appeal is within 60 days.
Under Section 28 of the Bombay Stamp Act, 1958 casts the duty on the executants to disclose and truly set forth relevant facts and circumstances in the instruments. This helps in finding out the types of transactions involved in the instruments which in turn helps in the determination of proper stamp duty payable on such instruments. Duty is not payable on the title or the heading given on the top of the instrument but on the recitals as stated in the instruments.
Yes, Refund can be claimed u/s 47 of The Bombay Stamp Act 1958. However such claim can be made to the collector of Stamps within a period of 6 months from the date of purchase of Stamps
Every person having by law or consent of parties’ authority to receive evidence and every person in charge of ? public office before whom any instrument chargeable with stamp duty is produced or comes in the performance of his functions. Shall if it appears to him that instrument is not duly stamped, impound the same, irrespective whether the instrument is not valid in law. Such impounded document is required to be forwarded to the Collector of Stamps for recovery of deficit stamp duty in addition to penalty at the rate of 4 % per month.
The Stamp Duty as is leviable on a Conveyance under clause (a), (b), (c) or (d) as the case may be, of Article 25 on the True Market Value of the property which is subject matter of the Gift. w.e.f. 24/04/2015. Stamp Duty payable on instrument of Gift Deed, as per Article 34 of Schedule I of Bombay Stamp Act, 1958.
5 % Stamp Duty is applicable on the True Market Value of the Property as per Article 34 read with Article 25 of Schedule I of Bombay Stamp Act, 1958. Click Here
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