Stamp Duty & Registration

Indian Registration Act 1908
The Indian Registration Act 1908 lays down that every document/instrument if creating, declaring, assigning, limiting or extinguishing the present and future right, title or interest in a immovable property the value whereof exceeds Rs. 100=00 is required to be compulsorily registered. If such document is not so registered then the same is barred to be admitted in evidence by the court.

Bombay Stamp Act 1958
It to be noted that the stamp duty is revenue of the Government and the Government has every right to collect its revenue inter alia in the form of stamp duty not paid at all or improperly paid upon the instrument/s.
The payment of stamp duty upon the instrument/s cures the imperfect title, rights, interest, accruing to the parties to such instruments by rendering the said title and rights clear and marketable and perfect in accordance with law.
Section 34 of Bombay Stamp Act states that no instrument chargeable with duty shall be admitted as evidence for any purpose or shall be acted upon unless necessary stamp duty is duly paid.
The relevant provisions concerning the immovable property are contained in Sections 31 and 32A of the Bombay Stamp Act 1958. The law Firm assists its clients in applying for the determination of market value of the property for the purposes of adjudication of stamp duty payable under the stamp enactment.

Instrument chargeable with duty:
Every instrument mentioned in schedule I of the Bombay Stamp Act 1958, which not having been previously executed by any person, is executed in and out of the State of Maharashtra on or after the date of commencement of this Act; shall be chargeable with duty of the amount indicated in said Schedule but such chargeability shall be subject to the provisions of the Act and the exemptions contained in the said Schedule I

No Stamp – No admissibility in Evidence:
The Bombay Stamp Act 1958 enjoins upon the executants of the instrument to duly stamped such instrument failing which no such instrument chargeable with duty shall be admitted in evidence for any purpose by any person having by law or consent of parties authority to receive evidence, or shall be acted upon, registered or authenticated by any such person or by any public officer unless such instrument is duly stamped [or if the instrument is written on sheet of paper with impressed stamp [such stamp paper is purchased in the name of one of the parties to the instrument].

Compliances under Bombay Stamp Act 1958:
A law firm practicing in the areas of property documentation assists its clients in following compliances:

  • Calculation Stamp duty for chargeability.
  • Proceedings:

Adjudication as to Stamp Duty
Refund of Stamp Duty
Application for Determination of True Market Value of Property