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BOMBAY STAMP ACT

The Bombay Stamp Act applies to the entire State of Maharashtra. All the instruments specified in the Schedule to the Act are covered under this Act.

  1. Important Definitions

1.1 "Conveyance" has been defined to include:

(a) a conveyance on sale,

(b) every instrument,

(c) every decree or final order of any Civil Court,

(d) every order made by the High Court u/s. 394 of the Companies Act, 1956 in respect of amalgamation of companies;

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.

1.2 "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.

1.3 "Instrument of partition" means any instrument whereby co-owners of any property divide or agree to divide such property and includes :

(a) a final order for effecting a partition passed by any revenue authority or any civil court,

(b) an award by an arbitration directing a partition, and

(c) 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.

1.4 "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.

  1. Payment

2.1 It can be paid by way of adhesive or impressed stamps on the instruments.

2.2 The stamp papers must be in the name of one of the parties to the transaction. They cannot be in the name of the Chartered Accountant or Lawyer of the parties.

2.3 The date of issue of the stamp paper must not be more than 6 months older than the date of the execution of the instrument.

2.4 Liability to pay Stamp Duty will be on the person who has agreed to pay the same. The Act also 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.

2.5 Stamp duty is payable at rates specified in Schedule I. Depending upon the Instrument, it may be based upon nature of instrument which is either ad valorem.

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 gives 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.

2.6 Any person can apply to the Collector of Stamps for adjudication of the stamp duty payable on the instrument.

3. UNDER valued Document

3.1 Under section 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 twice the amount of deficiency in duty.

3.2 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 on payment of Rs. 100.

3.3 A person can be punished with rigorous imprisonment for up to 6 months (not less than 1 month) and with fine up to Rs. 5,000/-, if it is proved that the instrument was undervalued or short payment of duty was made with intention to evade duty.

SCHEDULE 1
RATES ON VARIOUS INSTRUMENTS AS PER BOMBAY STAMP ACT, 1958

MAHARASHTRA

Article

Description

Stamp Duty

4

Affidavit (Exemption: for use in the Court or Tribunal)

Rs.100/-

5

Agreement

 

(a) Relating to sale of bill of exchange;

Re. 1 for every Rs.10,000 or part thereof

 

(b) Relating to purchase or Sale of Government Security;

50 paise for every Rs.1,00,000/- or thereof of the value of Security at the time of its purchase or sale, as the case may be.

 

(c) Development Rights Agreement

Rs.5 for every Rs.500 or part thereof of the market value of the property

 

(d) Relating to the purchase of one or more units in any scheme or project by an investor from a developer.

Same duty as on conveyance under clauses  (a), (b), (c) or (d) of Article 25 on the market value of the unit;

 

 

Note: The purchaser would get a set off of Stamp Duty to the extent of the amount of Stamp Duty paid by the seller, on the second document of conveyance made within three years from the date of the agreement by the purchaser & if no duty is required to be paid, then the minimum duty for the conveyance shall be Rs.1,000/-

 

(e) Relating to transfer tenancy rights (duty per sq. m.)

Commercial

Residential

 

(i) Greater Bombay

(ii) Thane, Pune, Nagpur, Navi Mumbai 

(iii) Other Municipal Corporation 

Rs. 2,000

Rs. 200

Rs. 1,000

Rs. 100

Rs. 400

Rs. 50

(f) relating to hire purchase

Same as in case of lease.

(g) relating to : —

 

(i) any advertisement on mass media made for promotion of any product or programme or event with an intention to make profit out of it.

Rs. 2.50/- for every Rs.1,000 or part thereof on the amount agreed in the contract. subject to minimum Rs 100/- and maximim Rs 10,00,000 

 

(ii) Conferring exclusive rights of telecasting, broadcasting or exhibition of any event or a film,

Rs. 2.50/- for every Rs.1,000 or part thereof on the amount agreed in the contract. subject to minimum Rs 100/- and maximim Rs 10,00,000 

 

(iii) Specific performance by any person or group of persons where the value of contract exceed Rs.1 lakh;

Rs. 2.50/- for every Rs.1,000 or part thereof on the amount agreed in the contract.subject to maximim Rs 10,00,000

 

(iv) Creation of any obligation, right or interest & having monetary value but not covered under this article;

One Rupee for every Rs. 1,000 or part thereof on the amount agreed in the contract subject to minimum Rs 100 and maximim Rs 10,00,000

 

(v) Assignment of copyright under the Copyrights Act, 1957.

Rs. 2.50 for every Rs.1,000 or part thereof on the amount agreed in the contract. of the value signed for such  assignment subject to minimum Rs 100 and maximim Rs 10,00,000

 

(vi) Project under Built, Operate and Transfer (BOT)  System, whether with or without toll or fee collection Rights.

One Rupee for every rupees 1,000/- or part thereof of the contractual value subject to the minimum of Rs.100 and maximum of Rs. 5,00,000

 

(vii) If not provided, otherwise

One Hundred Rupees

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

Re.1 for every Rs.1,000 or part thereof of the amount secured by the deed — Maximum of Rs. 10,00,000 & Minimum of Rs.100

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)

Rs.1,000 for every Rs. 5,00,000 or part thereof subject to a maximum of Rs. 50,00,000

12

Award by an Arbitrator or Umpire (not being an Award
directing a Partition)

 

(a) On the property value to which the award relates

The same duty as bond (Article 13) Subject to maximum Rs.100.

(b) Other cases

Rs. 100

15

Cancellation (Exemption: Revocation of will)

Rs. 100

17

Certificate of Other Document (Shares, Scrip, Stock, etc. on face value + premium)

Re. 1 for every Rs.1, 000 or part thereof on (approx. 0.1%)

24

Composition Deed

Rs. 200

25

Conveyance (on the true market value)

 

(a) Movable Property for every Rs. 500 or part thereof

Rs. 15

(b) (A) Immovable Property

 

(i) In Rural areas within Bombay Metropolitan Region (BMR)

Rs. 25

 

(ii) Residential property in Rural area not in BMR

Rs. 5

 

(iii) Non-residential property in Rural area not in BMR

Rs. 15

(iv) In C Class Municipal Councils

Rs. 20

 

(v) In B Class Municipal Councils

Rs. 25

(vi) In A Class Municipal Councils

Rs. 25

 

(vii) In Municipal Corporation of Mumbai, Pune, Thane and Navi Mumbai

Rs. 25

 

(viii) In Municipal Councils of certain Hill Stations

Rs. 25

 

(viii) In Municipal Councils of BMR, Devlali, Dehu Road

Rs. 25

 

(b) (B) If relating to a residential premises which is a building or an unit (Concessional rate of duty)

 

 

(a) by or in favour of a Co-op Housing Society

 

 

(b) where provisions of Maharashtra Ownership Flats Act or Maharashtra Apartment Ownership Act apply

 

 

(c) by Society in favour of its member or incoming member (by share or otherwise)

 

 

(d) by a member to another member including an incoming member

 

 

(e) purchase of land in cases covered by (a) to (d) above

Same duty as is payable under sub-clause (1)

Applicable Rates

 

(i) Does not exceed Rs. 2,50,000

One Hundred Rupees

 

(ii) exceed Rs. 2,50,000 but does not exceed Rs. 5,00,000

Rs. 100 plus 3% of the value above Rs. 2,50,000

 

(iii) exceeds Rs 5,00,000

Rs. 7,600 plus 5% of the value above Rs. 5,00,000

 

(c) High Court order u/s. 394 of the Companies Act, in respect of amalgamation or reconstruction of companies.

10% of the aggregate of the market value of shares issued or allotted in exchange or otherwise and the amount of consideration paid for such amalgamation:

 

 

 

the amount of duty chargeable under this clause shall not exceed-—

 

 

(i) 5% of the true market value of the immovable property located in Maharashtra of the transferor company; or

 

 

(ii) 0.7% of the aggregate of the market value of shares issued or allotted in exchange or otherwise and the amount of consideration paid, for such amalgamation, whichever is higher:

 

 

Provided further that, in case if reconstruction or demerger the duty charegeable shall not exceed—

 

 

(i) 5% of the true market value of the
immovable property located in Maharashtra transferred by the Demerging Company to the Resulting Company: or

 

 

(ii) 0.7% of the aggregate of the market value of shares issued or allotted to the Resulting Company and the amount of consideration paid for such Demerger, 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.

  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.

27

Counterpart/Duplicate

Maximum Rs.100. The same duty as is payable on the original subject to maximum of Rs.100

32

Exchange

Same duty as on a conveyance on the value of that property which has the greatest 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 @ Rs.10 for every Rs. 500 or part thereof

35

Indemnity Bond

Rs. 200

36

Lease including sub-lease & any agreement to let or sub-let or  any renewal of lease, where such lease purports to be: —

 

 

(i) for a period not exceeding 5 years.

Same duty as a levible on a conveyance under clause (a), (b), (c) or (d) of Article 25, on 10% of market value of the property.

 

(ii) for a period exceeding 5 years but not exceeding 10 years

Same duty as a levible on a conveyance under  clause (a), (b), (c) or (d) of Article 25, on 25% of market value of the property.

 

(iii) for a period exceeding 10 year but not exceeding 29 years

Same duty as a levible on a conveyance under clause (a), (b), (c) or (d) of Article 25, on 50% of market value of the property.

 

(iv) for a period exceeding 29 years or in perpetuity or does not purport for definite period.

Same duty as a leviable on a conveyance under clause (a), (b), (c) or (d) of Article 25,on 90% of market value of the property.

36A

 LEAVE & LICENCE

 

(A) Where agreement purports to be for term not
exceeding 60 months: —

 

 

(i) if relating to residential Premises, (Mumbai City & Mumbai suburban district)

 

 

  1. Average annual rent + security deposit or money to be advanced < Rs.2,50,000 for single term of 12 months

Rs. 750 for every term of 12 months or part thereof

 

  1. Average annual rent + security deposit or money to be advanced >Rs.2,50,000 but < Rs.5,00,000 for single term of 12 months

Rs. 1,500 for every term of 12 months or part thereof

 

  1. Average annual rent + security deposit or money advanced > Rs. 5,00,000 but < Rs. 20,00,000 for single term of 12 months

Rs. 3,000 for every term of 12 months or part thereof

 

  1. Average annual rent + security deposit or money advanced > Rs.20,00,000 for single term of 12 months

Rs. 5,000 for every term of 12 months or part thereof

 

(ii) if relating to non residential premises

Twice the amount of duty chargeable for residential premises under clause (i), (ii), (iii) or (iv) above, as the case may be

 

(iii) the Municipal Corporation of cities Thane, Pune, Nagpur, Navi Mumbai etc. (1) if relating to residential premises,

 

 

  1. Average annual rent + security deposit or money to be advanced < Rs.2,50,000 for single term of 12 months

Rs. 500 for every term of 12 months or part thereof

 

  1. Average annual rent + Security deposit or money to be advanced >Rs.2,50,000 but < Rs.5,00,000 for single term of 12 months

Rs.1,000 for every term of 12 months or part thereof

 

  1. Average annual rent + security deposit or money advanced > Rs.5,00,000 for single term of 12 months (2) If relating to non-residential premises

Rs.2,000 for every term of 12 months or part thereof

 

(iv) if relates to non-residential premises in above case

Twice the amount of duty chargeable for residential premises under clause (i), (ii) or (iii) above, as the case may be.

 

(v) Any place other than above If relating to residential premises

 

 

  1. Average annual rent + security deposit or money to be advanced <Rs. 2,50,000 for single term of 12 months

Rs. 500 for every term of 12 months or part thereof.

 

  1. Average annual rent + security deposit or moneyto be advanced >Rs. 2,50,000 but < Rs 5,00,000 for single term of 12 months

Rs. 1000 for every term of 12 months or part thereof.

 

  1. Average annual rent + security deposit or money to be advanced > Rs 5,00,000 for single term of 12 months

Rs. 2,000/- for every term of 12 months or part thereof.

 

(vi) Any place other than above if relating to non-residential premises

Twice the amount of duty chargeable for Residential premises under clause (i), (ii),or (iii) above, as the case may be.

 

(B) Where Agreement purports to be for term exceeding 60 months

Same duty as is leviable on lease

37 

Letter of Allotment of Shares

Re.1

39

Memorandum of Association

 

(a) if accompanied with Articles

Rs. 200

 

(b) if not so accompanied

Same duty as on Articles of Association under Article 10 according to Share Capital of the company.

40

Mortgage Deed

 

(a) Where possession is given

Same duty as on conveyance as the case may be of Article 25, for the amount secured by the deed.

 

(b) Where possession is not given

Rs. 5 for every Rs.1000 or part thereof subject to a maximum of Rs.10,00,000/- and a minimum of Rs.100

42

Notary (attestation etc., by Notary Public)

Rs. 25

46

Partition

Rs.10 for every Rs. 500 or part thereof of the amount or the market value of the separated share or shares of the property.
Note – The largest share remaining after the property is partitioned (or if there are two or more shares of equal value & not smaller than any other shares, then one of such equal shares) shall be deemed to be that from which the other shares are separated.

47

Partnership

 

(a) No share of contribution in partnership, or where such share contribution (brought in way of cash) does not exceed Rs.50,000

Rs. 500

 

(b) where such share Contribution (brought in by way of cash) is in excess of Rs 50,000 for every Rs 50,000/- or part thereof.

Rs. 500, subject to a maximum duty of Rs. 5,000

 

(c) Contribution by way of Property (not cash)

Same as on a conveyance on the market value of property.

 

(d) Dissolution of partnership or Retirement of partner

 

 

(i) where any property is taken as his share by a partner other than a partner who brought in that value property as his share of contribution in the partnership.

Same as on a conveyance on the market subject to a minimum of Rs.100

(ii) In any other case

Rs. 200

48

Power of Attorney

 

(a) for sole purpose of Registration of documents 

Rs. 100

(b) for suits in small cause court

Rs. 100

 

(c) for acting in a single transaction to one or more
persons

Rs. 100

 

(d) for acting in more than one transaction or generally to one person

Rs. 100

 

(e) for acting in one or more transactions or generally to one or more persons

Rs. 100

 

(f) for consideration and authorization to sell an
immovable property

Same as on a Conveyance

 

(g) for construction, development, sale etc. to a developer or promoter

Same duty as is leviable on conveyance under  clauses (b), (c), (d), as the case may be of Article 25 of the Market value of the property

(h) in any other case

Rs.100 for each person authorised

51 A

Record of Transaction effected by a Trading Member
through a stock exchange or the Association referred to in section 10B.

 

 

(a) if relating to sale and purchase of government
securities,

Rs. 50 for every Rs.1 crore or part thereof of the value of security

 

(b) If relating to purchase or sale of securities, other than those falling under item (a) above

 

 

(i) in case of delivery

Re.1 for every Rs.10,000 or part thereof.

 

(ii) in case of non delivery

0.20 paise for every Rs.10,000 or part thereof.

 

(c) if relating to futures & options trading

0.20 paise for every Rs.10,000 or part thereof.

 

(d) if relating to forward contract of commodities traded through an association or otherwise.

Re.1 for every Rs.1,00,000 or part thereof.

52

Release; i.e., any instrument (not being instrument as provided by sec. 24) whereby a person renounces a claim upon such other person or against such property.

 

 

(a) if the release deed of an ancestral property or part thereof is executed by or in favour of brother or sister (children of renouncers parents) or son or daughter or son of predeceased son or daughter of predeceased son or father or mother or spouse of the renouncer or the legal, heirs of the above relations.

Two Hundred Rupees

 

(a) In any other case.

The same duty as is leviable on a conveyance under clause (a), (b), (c) or (d) as the case may be of Article 25, on the market value of the share interest, part or claim renounced.

58.

Surrender of Lease

(i) Without consideration

Rs. 200

 

(ii) With consideration

Same duty as on a Conveyance on amount of consideration

59.

Transfer (whether with or without consideration)

 

 

(a) of debentures, being marketable securities the whether the debenture is liable to duty or not except debentures provided for by section 8 of the Indian Stamp Act, 1989.

0.50 paise for every Rs. 100 or part thereof of consideration.

 

(b) of any Interest secured by bond, mortgage deed or policy of insurance

 

 

(c) of any property under section 22 of the Administrators General Act,1963;

Same duty as a bond (Article 13) for such amount or value of the interest as set forth in Same as a bond maximum Rs. 200

 

(d) of any trust property without consideration from one trustee to another trustee, or from a trustee to a beneficiary.

 

Exemptions.— transfers by endorsement —

 

(a) bill of exchange, cheque or promissory note;
(b) bill of lading, delivery order, warrant of goods or other mercantile document or title to goods
(c) Policy of Insurance;
(d) securities of the Central Government.

 

61

Trust

1. (A) where there is disposition of property

 

(i) for charitable or religious purpose

Rs. 10 for every Rs. 500 or part thereof

 

(ii) in any other case where there is no disposition

Same as on a conveyance on the amount settled

(B) where there is no disposition of property

(i) All trust

Same as a bond maximum Rs. 200

(ii) In any other case

Same as a bond maximum Rs. 200

 

2. Revocation of any property when made by
any instrument other than a will

Same as a bond maximum Rs. 200

STAMP DUTY AND FEES PAYABLE

STAMP DUTY AND FEES PAYABLE FOR REGISTRATION OF COMPANIES LIMITED BY SHARES

Nominal Capital

Filing fee to be deposited with

Stamp Duty payable in Maharashtra

Memorandum

Articles & Forms*
the ROC (each)

Memorandum

Articles

Rs.

Rs.

Rs.

Rs.

Rs.

50,000

4,000

100

200

1,000

100,000

4,000

200

200

1,000

200,000

7,000

200

200

1,000

500,000

16,000

300

200

1,000

1,000,000

26,000

300

200

2,000

1,500,000

36,000

300

200

3,000

2,500,000

56,000

500

200

5,000

5,000,000

106,000

500

200

10,000

7,500,000

131,000

500

200

15,000

10,000,000

156,000

500

200

20,000

20,000,000

206,000

500

200

40,000

30,000,000

256,000

500

200

60,000

40,000,000

306,000

500

200

80,000

50,000,000

356,000

500

200

100,000

100,000,000

606,000

500

200

200,000

200,000,000

1,106,000

500

200

400,000

300,000,000

1,606,000

500

200

600,000

400,000,000

2,106,000

500

200

800,000

500,000,000

2,606,000

500

200

1,000,000

Note:

(a) Further fees @ Rs. 500 per lacs subject to maximum registration fees Rs. 2,00,00,000.

(b) (i) Registration fees payable for a company not having share capital & having members not exceeding 20, Rs. 1000.

(ii) Members exceeding 20 but not exceeding 100 then fees payable would be Rs. 2500.

(iii) Members exceeding 100 for every 50 members Rs. 10 subject to maximum Rs. 5,000.

(c) In case of unlimited members Rs. 5,000 is payable for a document & in case of a company not having share capital Rs. 50.

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