From 10.12.1985, even on agreement for sale, the purchaser is required to pay stamp duty on market value of the immovable property transferred as a deemed conveyance due to Explanation appended to Article 25(d), at the time of signing the agreement for sale itself. Whereas, prior to 10.12.1985, such agreement for sale required a stamp of Rs.5 only, at the time of signing the agreement under article 5(h) provided stamp duty as applicable to conveyance will be payable at the time of conveyance of the immovable property in future. Hence date 10.12.1985 relates to arrival of deemed conveyance concept.
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Stamp duty is chargeable on various documents as per different rates as per Schedule–I of the Maharashtra Stamp Act, 1959. Stamp duty on document relating to sale/purchase of residential flat / shops / commercial industrial units is as per Article 25 of Schedule I of Maharashtra Stamp Act, 1958, depending upon their market value. At present the rate of stamp Duty is 5%. Stamp duty on document relating to Leave & Licence under Article 36A of Schedule I of Maharashtra Stamp Act, 1958. At present the rate of stamp duty is 0.25% of amount arrived as per rent and deposit.
Purchase of stamp paper
From 01/05/1994 stamp papers are to be purchased in the name of one of the parties to the document. If the stamp paper is not in the name of the parties and if it is used for preparing the agreement, then such agreement will be treated as if no stamp paper was used. However, it will not make the agreement invalid and can be enforced in law if proper stamp duty is paid subsequently. Prior to 01/05/1994 stamp paper could be purchased in any name.
Validity period of a stamp paper
Stamp paper purchased up to 30/11/1989 was valid for any period of time. However, from 01/12/1989 all stamp paper (whether purchased before, on or after 01/12/1989) is valid for a period of six months only from the date of purchase thereafter it is treated as ordinary paper as if it has no stamp. However, Court fee stamps and Court fee paper is valid for any period of time as there is no time limit specified in The Maharashtra Court Fees Act, 1959, for its use.
(The writer is a valuer of real estate and co-author of Stamp Duty Ready Reckoner)
