Maharashtra Stamp duty on import bill of entry

Hi Jayanta,

You’re right to question the imposition of stamp duty on Bills of Entry (BoE) for imports, especially given recent High Court rulings.

Background:

• Maharashtra Stamp Act mandates stamp duty on various documents, including Bills of Entry.

• The state government sought to levy 0.10% stamp duty on the total assessed value of imported goods on the Bill of Entry.

• This has been a matter of legal challenge.

Recent Judgments:

• Mumbai High Court and Gujarat High Court have ruled that imposing stamp duty on Bills of Entry is not valid.

• Their judgments hold that Bills of Entry are documents filed with Customs and do not fall under the purview of the Maharashtra Stamp Act for levy of stamp duty.

• The courts have emphasized that levy of such stamp duty amounts to double taxation (Customs duties + stamp duty).

Current Position:

• Technically, Maharashtra govt tried imposing 0.10% stamp duty, but courts have stayed/struck down such levy.

• Stamp duty should not be charged on Bills of Entry for imports based on these rulings.

• Recovery attempts by authorities from importers might have happened but are being challenged legally.

How is it recovered if imposed?

• Usually, the duty is collected via demand notices from the Stamp Duty Department.

• Sometimes Customs or State Revenue may ask for payment during clearance or post clearance via notices.

• However, importers are advised not to pay pending litigation outcomes or get refunds if paid.

What should importers do now?

• Stay updated on the latest court rulings and government notifications regarding this levy.

• Consult a legal expert for filing appeals or refund claims if stamp duty was already paid.

• Maintain documentation of payments and correspondence for future reference.

• Raise this issue with customs brokers and concerned authorities to avoid wrongful collection.