Maharashtra Stamp Act, 1958
I. Applicability
The Maharashtra Stamp Act, 1958 applies to the entire State of Maharashtra.
Only the instruments specified in the Schedule I to the Act are covered by this
Act. All other instruments are either chargeable under the Indian Stamp Act
(e.g., transfer of shares) or are not chargeable at all (i.e., if they are not
specified under the Act as well as under the Indian Stamp Act).
II. Charge of Stamp Duty
- It is very important to note that stamp duty is on an instrument and not
on a transaction.
- S. 3 of the Act levies stamp duty at the rate provided in Schedule I on
any instrument executed in the State. Even instruments executed outside the
State are liable to duty only on their receipt in the State, provided it relates
to a property situated in the State or a matter or thing to be done in the
State.
- An instrument covering or relating to several distinct matters is
chargeable with the aggregate amount of duty with which each separate instrument
would have been chargeable.
- In case an instrument is so drafted that it is covered within the ambit
of more than one Article under Schedule I, then it shall be taxed by that
Article which levies the highest amount of stamp duty.
- The term "Instrument" has been defined to include every document by which
any right or liability is or purports to be created, transferred, limited,
extended, extinguished or recorded.
However, it does not include a bill of exchange, cheque, promissory note,
bill of lading, letter of credit, policy of insurance, transfer of share,
debenture, proxy and receipt. Some instruments narrated are governed by Indian
Stamp Act, 1999.
III. Certain Definitions
- "Conveyance" has been defined to include:
- A conveyance on sale,
- Every instrument,
- Every decree or final order of any Civil Court,
- Every order made by the High Court u/s. 394 of the Companies Act, 1956
in respect of amalgamation of companies; by which property, whether movable
or immovable or any estate or interest in any property is transferred to, or
vested in any other person inter vivosand which is not otherwise
specifically provided for by
Schedule I.
The Explanation to the definition provides that any instrument by
which one co-owner transfers his property to another co-owner would be deemed to
be a conveyance provided that it is not an instrument of partition.
- "Instrument of gift" has been defined to include, in case of an oral gift
any instrument recording its making or acceptance, whether by way of declaration
or otherwise.
- "Instrument of partition" means any instrument whereby co-owners of any
property divide or agree to divide such property and includes:
- Any final order for effecting a partition passed by any revenue
authority or any civil court,
- An award by an arbitration directing a partition, and
- When any partition is effected without executing any such instrument,
any instrument or instruments signed by the co-owners and recording, whether
by way of declaration of such partition or otherwise, the terms of such
partition amongst the co-owners.
The expression 'co-owners' includes all kinds of co-ownership such as joint
tenancy, tenancy in common, coparcenary, membership of HUF, etc. and the
partnership.
- "Immovable Property" includes land, benefits to arise out of land and
things attached to the earth or permanently fastened to anything attached to the
earth. The two leading decisions on this definition are those of the Supreme
Court in the case of Sirpur Paper Mills (1998) 1 SCC 400 and the case
of Duncan's Industries (2000) 1 SCC 633.
IV. Payment of Stamp Duty
- Section 17 of the Act provides that all instruments chargeable with duty
and executed in Maharashtra should be stamped before or at the time of execution
or immediately thereafter or on the next working day following the date of
execution.
- Instrument executed only out of Maharashtra may be stamped within three
months after it is first received in State.
- Duty can be paid by way of adhesive or impressed stamps on the
instruments. Adhesive Stamps affixed should be cancelled at the time of
execution so that they are not available for reuse. Now franking of stamp duty
is not permitted.
- Further, S.14 prohibits writing of a second instrument chargeable with
duty on a stamp paper on which an instrument chargeable with duty has already
been written.
- The stamp papers must be in the name of one of the parties to the
transaction. They cannot be in the name of the relative, Chartered Accountant or
Lawyer of the parties.
- The date of issue of the stamp paper must not be more than 6 months older
than the date of the transaction.
- Who bears and pays the stamp duty is a matter of agreement between the
parties. In the absence of any such agreement, the Act provides that in the case
of a Conveyance, duty is to be paid by a buyer and by the lessee in case of a
lease. In cases of Bonds, Release, Settlement, it is to be paid by the person
making or drawing the instrument. In case of exchange, it is to be paid by the
parties in equal shares and in case of partition, by the parties in proportion
to their respective shares. In all
other cases, it is to be paid by the person executing the instrument.
- Stamp duty is payable at rates mentioned in Schedule I. Depending upon
the Instrument, it may be based upon the market value, area, or various other
criteria. In case of instruments which are based upon market value of the
property, the term in relation to any property which is the subject matter of an
instrument, means the price which such property would have
fetched if sold in open market on date of execution of such instrument or
consideration stated in the instrument whichever is higher.
The stamp office determines the market value of the property by referring to
an Annual Statement of Rates (commonly known as Stamp Duty Ready Reckoner) which
gave the Market Values of various immovable properties in Mumbai. The Reckoner
divides the immovable property into various categories such as developed land,
undeveloped land, residential units, industrial units/office, shops, etc., and
fixes their market value accordingly.
- Any person can apply to the Collector of Stamps for adjudication of the
stamp duty payable on the instrument who shall determine the duty, if any with
which the instrument shall be chargeable. It may be noted that now adjudication
is compulsory in all cases where an instrument requires registration as the
Registrar of Sub-Assurance insists upon the same. The instrument should be
brought to the Collector within 1 month of execution of such instrument in the
State and within 3 months from date of receipt of such instrument in the State.
When Registrar of sub-registrar Assurance determine proper value, there is no
need for adjudication.
V. Understamped Document
- Under S. 34 of the Act, any instrument which is inadequately /not
stamped, then it shall be inadmissible in evidence for any purpose, e.g., in a
Civil Court. Such instruments can be admissible in evidence on payment of the
requisite amount of duty and a penalty @ 2% per month on the deficient amount of
duty calculated from the date of execution. However, the maximum penalty cannot
exceed four times the amount of duty involved.
- Further, any public officer can impound such improperly stamped
instruments if it comes to his notice. Such impounded instruments must be sent
to the Collector who would then determine the amount of duty and penalty, if
any, payable on the same. Any party to an instrument can also suo motu submit
an instrument for adjudication by the Collector u/s. 31.
There is separate set of procedure for a jurisdiction.
- A person can be punished with rigorous imprisonment for up to 6 months
(not less than 1 month) and with fine up to
₹ 5,000, if it is proved that the instrument was undervalued or short payment of
duty was made with intention to evade duty.
SCHEDULE I RATES (IMPORTANT ARTICLES)
MAHARASHTRA
[As updated by Maharashtra Stamp (Second Amendment) Act, 2017]
Article |
Description of Instrument |
Stamp Duty |
4 |
Affidavit
(Exemption: for use in the Court or Tribunal),
as a condition of enrolments under the Air Force Act 1950 or Navy Act
1957 |
₹ 100 |
5 |
Agreement |
|
(c) (e)
(g-a)(i)
(g-a)(ii) |
Relating to purchase/sale of shares & securities Relating to
purchase or sale of bullion/species
Development Rights Agreement
Relating to purchase of units in any scheme by an investor from a
developer – when the investor sells the unit a set-off of the duty paid
would be allowed against duty on Conveyance under Article 25 |
0.005% of the value of security 0.005% of the value of gold /
silver
Same as in the case of a Conveyance as on the market value
Same as in the case of a Conveyance as on the market value |
(g-d) |
Relating to transfer of tenancy rights in: |
|
|
For non-residential use of any size; or
For residential use with an area more than 300 sq. feet |
5% of the market value of the property depending upon the location
of the property |
|
For residential use with an area up to 300 sq. feet |
₹ 200 per sq. metre |
(g-e) |
Relating to hire purchase |
Same duty as on a Lease (Article 36) |
(h) (i) |
Relating to certain advertising contracts |
0.25% if the amount agreed is up to ₹ 10 lakh and 0.5%
if the amount exceeds ₹ 10 lakh NIL |
(ii) |
Relating to contracts for exclusive broadcasting / exhibition rights
of a film |
(iii) |
Relating to specific performance by a person where contract
> ₹ 100,000 |
(iv) |
a) Amount does not exceed ₹ 100,000
b) In other cases |
0.25% minimum ₹ 100
0.5% of the amount exceeds |
(v) |
Relating to assignment of Copyrights |
0.25% of amount agreed up to ₹ 10 lakh other case 0.2% of amount
agreed |
(vi) |
Relating to creation of any obligation, right or interest and having
monetary value |
0.10% if the amount agree is up to ₹ 10 lakh and 0.20% if the amount
exceeds ₹ 10 lakh |
|
General (not otherwise provided for) |
₹ 100 |
6 |
Agreement for Deposit of Title Deeds, Pawn, Pledge or
Hypothecation Deposit of title deeds securing amount of loan
or for pawn, pledge or hypothecation securing amount of loan |
₹ 1 for every ₹ 1,000 (approx. 0.1%) or part thereof of the amount
secured by the deed if the amount secured is up to ₹ 5,00,000 and
₹ 2 for every ₹ 1,000 (approx 0.2%) in all other cases. The maximum duty
is ₹ 10 lakh |
10 |
Articles of Association of a Company
On the share capital, thereof subject to a nominal capital or increased
share capital (Exemption S. 25 companies) |
0.2% subject to a maximum of ₹ 50,00,000 |
12 |
Award by an Arbitrator or Umpire (not being an
Award directing a Partition) |
₹ 500 |
15 |
Cancellation
(Exemption: Revocation of will) |
₹ 500 |
17 |
Certificate or Other Document (Shares, Scrip,
Stock, etc. on face value and premium) |
₹ 1 for every ₹ 1,000 or part thereof (approx. 0.1%) |
24 |
Composition Deed |
₹ 500 |
25(a) |
Conveyance (on the true market value)
Movable Property |
₹ 15 for every ₹ 500 or part thereof (approx. 3%) |
(b) (A) |
Immovable Property |
Duty on every ₹ 500 of Market Value |
Within the Municipal limits of any urban area |
5% of market value of property |
|
Within the limits of any Municipal Council / Panchayat /Cantonment
of any area within MMRDA |
5% of market value of property |
Within the limits of any Gram Panchayat |
4% of market value of property |
(c) |
High Court order u/s. 394 of the Companies Act, in respect of
amalgamation or reconstruction of companies |
10% of market value of shares allotted in exchange and consideration
if any paid but not exceeding the higher of: i) 5% of market value of
the immovable property located in Maharashtra or the transferor company,
or
ii) 0.7% of market value of shares allotted in exchange and
consideration if any paid whichever is higher. |
|
Special Points for Conveyance: 1. An
agreement for sale providing for transfer of possession shall be deemed
to be a 'Conveyance' and will be stamped accordingly. However, a set off
of the duty paid will be given at the time of execution of the
conveyance in favour of owner/society.
2. Assignment of copyrights is exempt from stamp duty.
3. In case of amalgamation/reconstruction of companies, the market
value of the shares of transferee company is the value of shares on
stock exchange on the "appointed day" mentioned in the scheme or else
the date of the court's order. If the shares are not listed or not
quoted, the market value means the value of shares to the transferor
company or the value as determined by the Collector. |
26 |
Copy of exchange |
₹ 10 |
27 |
Counterpart/Duplicate |
Maximum ₹ 100 |
28 |
Customs / Excise Bond in respect of duties
payable/pursuant to Order of any Excise/Customs Officer |
₹ 500 |
30 |
Divorce |
₹ 100 |
32 |
Exchange |
Same duty as on a conveyance but on the market value of that
property which has the greater value |
34 |
Gift (other than a settlement, will or transfer) |
Same duty as on conveyance. In case of a gift to spouse, brother,
sister, lineal ascendants or descendants @ 3% of market value |
|
Gift of residential/agricultural property to spouse, children or
grand-children or wife of deceased son |
₹ 200 |
35 |
Indemnity Bond |
₹ 500 |
36 |
Lease including sub-lease: a) Where lease
period is
i) Up to 5 years
ii) 5 years to 10 years with a renewal clause
iii) 10 years to 29 years with a renewal clause
iv) Exceeding 29 years or for indefinite period or for perpetuity |
Same Duty as on conveyance on the following values: i) 10% of
market value
ii) 25% of market value
iii) 50% of market value
iv) 90% of market value |
|
Special Points for Lease: 1. Consideration such
as premium, security deposit, advance, will for market value be treated
as consideration passed on. If renewal period is specifically mentioned,
will be treated as part of current lease.
2. An agreement for lease will not be treated as lease if there is no
immediate demise – Atur India P Ltd., (1994) 2 SCC 497 |
|
36A |
LEAVE & LICENCE |
|
|
For a term not exceeding 60 months with or without a renewal clause |
0.25% of the total sum of following:
- Licence fees/Rent
- Non-refundable deposit or premium; plus
- Interest @ 10% p.a. on the refundable security deposit or money
advanced/to be advanced
|
37 |
Letter of Allotment of Shares |
₹ 1 |
39 |
Memorandum of Association of a company (Exemption u/s. 25
companies) a) if accompanied with Articles of Association
b) if not so accompanied |
₹ 1,00 Same duty as on Articles of Association under Article
10 ₹ 1,000
2% subject to maximum of ₹ 50,00,000 |
40 |
Mortgage Deed |
|
a) |
Where possession is given |
Same duty as on conveyance on the amount secured by the deed |
b) |
Where possession is not given |
₹ 5 for every ₹ 1,000 or part thereof (approx. 0.5%); subject to a
maximum of ₹ 10,00,000 and a minimum of ₹ 100 |
42 |
Notary (attestation, etc., by Notary Public) |
₹ 25 |
46 |
Partition Special Points :
1. The value of largest share remaining after the partition will be
excluded for duty on equal share than duty is any one of share
2. In case of order of partition by a Civil Court rebate will be
given to the extent of the Court Fees paid
3. ₹ 100 in case of agricultural land |
₹ 10 for every ₹ 500 or part thereof (approx. 2%) of the market
value of the separated share or shares of property. |
47 |
Partnership including an LLP, Joint Venture to run
a business, earn profits and to share profits, whether in cash or in
kind |
|
(a) |
No contribution or cash contribution < ₹ 50,000 |
₹ 500 |
(b) |
Cash Contribution > ₹ 50,000 |
1% subject to a maximum of ₹ 15,000 |
(c) |
Contribution by way of property (not cash) |
Same as on a conveyance on the market value of property |
(d) |
Dissolution or Retirement i) Where any property
is transferred to a partner other than the one who brought it
ii) In any other case |
Same as on a conveyance on the market value subject to a minimum
of ₹ 100 ₹ 500 (w.e.f. 24-4-2015) |
48 |
Power of Attorney a. For sole purpose of
registration
b. For suits in small causes court
c. For acting in a single transaction to one or more person [other
than stated in 48(4)]
d. For acting in more than one transaction or generally to one person
e. For acting in one or more transactions or generally to one or more
persons
f. (i) For or without consideration and authorising to sell an
immovable property
(ii) For authorising to sell immovable property without consideration
and given to parents, siblings, spouse, children, grand children,
father-in-law, mother-in-law and siblings of the spouse
g. For construction, development, sale etc. to a developer or
promoter
h. In any other case |
₹ 500 ₹ 500
₹ 500
₹ 500
₹ 500
Same as on a conveyance on the market value
₹ 500
See special points below:
₹ 500 |
|
Special Point: 1. In case of (f), set off of duty
paid will be given on execution of the conveyance
2. Duty payable under (g) will be ₹ 500 only if duty is already paid
under Article 5(g-a) on Development Rights' Agreement |
|
52 |
Release whereby a person renounces a claim upon
other person or property If the release is of an ancestral property in
favour of certain specified relatives without any consideration
Every other Case |
₹ 200
Same duty as on a conveyance as on the market value of the share,
interest or part renounced |
54 |
Security Bond or mortgage deed |
₹ 5 for every ₹ 1,000 or part thereof (approx. 0.5%) of the amount
secured Maximum ₹ 10,00,000 |
58 |
Surrender of Lease i) Without consideration
ii) With consideration |
₹ 200 Same duty as on a Conveyance on amount of consideration |
59 |
Transfer of marketable debentures |
Re. 0.50 for every ₹ 100 (approx. 0.05%) of the consideration amount
of debentures |
60 |
Transfer of lease by way of assignment (See article
36) |
Same duty as leviable on a lease deed for the balance tenure of the
lease. |
61 |
Trust a) Where there is disposition of property
i) For charitable or religious purpose |
2% of the sum settled or market value of the property |
|
ii) In any other case where there is disposition of property |
Same as on a conveyance on the amount settled or market value of the
property |
|
b) Where there is no disposition of property
In any other case |
₹ 500 (Same duty as bond (Article 13) |
63 |
Works Contract for material and labour involving a
transfer of property in goods |
|
|
Where the contract value does not exceed ₹ 10 lakh |
₹ 500 |
|
Where the contract value exceeds ₹ 10 lakh |
₹ 500 + 0.5% of the contract value above ₹ 10 lakh. The maximum duty
is ₹ 25 lakh |
SOME IMPORTANT INSTRUMENTS UNDER INDIAN STAMP ACT
62 |
Transfer of shares in incorporated company or other
body corporate |
25 paise for every ₹ 100 or part thereof (approx. 0.25%) of value of
shares |
14 |
Bill of lading |
₹ 1 |
15 |
Receipt Value or amount which exceeds ₹ 5,000 with payment for
collection |
₹ 1 |
AD VALOREM COURT FEES PAYABLE UNDER THE BOMBAY
COURT FEES ACT, 1959
[As amended by Maharashtra Court-fees
(Amendment) Act, 2017]
(Wherever Applicable) |
Amount or Value of Subject Matter * |
Court Fees |
₹ 10,000 |
₹ 1,505 |
₹ 25,000 |
₹ 3,530 |
₹ 50,000 |
₹ 5,130 |
₹ 75,000 |
₹ 6,130 |
₹ 1,00,000 |
₹ 7,330 |
Over ₹ 1,00,000 and up to ₹ 10,00,000 |
₹ 7,330 + ₹ 400 for every ₹ 10,000 or part thereof (approx. 4%) |
₹ 10,00,000 |
₹ 42,930 |
Over ₹ 10,00,000 and up to ₹ 25,00,000 |
₹ 42,930 + ₹ 4,500 for every ₹ 1,00,000 or part thereof (approx.
4.5%) |
₹ 25,00,000 |
₹ 1,10,430 |
Over ₹ 25,00,000 |
₹ 1,10,430 + ₹ 5,000 for every ₹ 1,00,000 or part thereof (approx.
5%) up to a maximum of
₹ 10,00,000 (maximum fees) |
* Only some of the slabs are given |
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