Stamp duty payable on cancellation deed registration

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2017 We had applied to adj stamp collector for estimation of stamp duty payable for below stated Cancellation Deed. To our surprise we got the quote of Stamp duty payable of Rs.13,700.00 & penalty of Rs. 54,800.00. Please advise.

"Deed of Cancellation prepared to cancel the original Conveyance Deed executed in 1989 and registered with sub-registrar-Mumbai,Maharashtra in 1995."

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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25 July 2025 Regarding the **stamp duty and penalty on a Cancellation Deed in Maharashtra (Mumbai)**:

1. **Stamp Duty on Cancellation Deed:**

* In Maharashtra, the stamp duty on a cancellation deed is generally **a percentage of the market value or the value of the transaction mentioned in the original deed** (in this case, the 1989 conveyance deed).
* Stamp duty is applicable because cancellation of a registered deed is itself treated as a document requiring registration and payment of duty.
* The duty payable depends on the **valuation of the property at the time of cancellation** or as per the government valuation tables.

2. **Penalty:**

* Penalty arises because the cancellation deed was **not registered or duty not paid within the prescribed time**.
* The penalty is often **four times the amount of the stamp duty** as per Maharashtra Stamp Act provisions if delay or non-payment is established.
* This seems to be the reason you were quoted Rs. 54,800 as penalty against Rs. 13,700 duty.

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### What can be done?

* **Verify the valuation** basis on which the stamp duty has been computed. Sometimes reassessment or appeal is possible.
* **If delay is genuine and uncontrollable, you can request waiver or reduction of penalty** from the Stamp Duty Commissioner.
* Consult a legal or stamp duty expert who can file an appeal or representation.
* Ensure **all pending dues are cleared to avoid further legal complications.**

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### Summary:

* Stamp duty on cancellation deed is payable on the property value.
* Penalty is for delay or non-compliance.
* Penalty can be high but can be contested based on facts.

If you want, I can help draft a representation or guide you on how to approach the Stamp Collector or Commissioner. Would you like that?

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