Stamp duty rates have been revised w.e.f April 2012 as under:- For residential as well as commercial units the stamp duty payable is applicable @ 5% of market value of such unit or consideration paid under the agreement, whichever is higher.
The market value of the Unit is determined on the basis of stamp duty ready recknor issued by government every year on January 1st. Further registration fees is payable @ 1% of market value/consideration (whichever is higher)
What is market value?
Market value 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 the open market on the date of execution of such instrument or the consideration mentioned in the instrument, whichever is higher. The price which such property would have fetched if sold in the open market is determined on the basis of the Ready Reckoner issued each year. Depreciation in stamp duty is available for old buildings and building without lift.
When is stamp duty payable on an instrument in Maharashtra ?
All instrument are liable to be stamped before or at the time of execution of instrument or immediately thereafter on the next working day following the date of execution, when executed in the State of Maharashtra . Any instrument executed outside the state is liable to duty only on receipt of such instrument in the state, provided it relates to a property situated in the state, or a matter or thing to be done in the state. Stamp duty is not levied on a transaction, but on an instrument.
What is the rate at which stamp duty is payable?
Stamp duty is payable at the rate mentioned in the Bombay Stamp Act, 1958 and as amended from time to time.
Which documents are required to be compulsorily registered?
Documents listed in Section 17 of the Indian Registration Act, 1908 are to be registered compulsorily. Registration of documents listed in Section 18 of the Indian Registration Act, 1908 is optional. An agreement for leave and licence is required to be compulsorily registered under the Maharashtra Rent Control Act, 1999.
Is there a time limit within which documents should be registered?
Yes. Documents must be registered within 4 months of the date of execution. Thereafter, documents can be registered within the next 4 months on payment of penalty.
Who is required to pay stamp duty and registration fee on purchase or lease of a flat or office?
A purchaser (whether on first sale from a developer or on resale of a flat) or a lessee of a flat or office is required to pay stamp duty and registration fee.
Is there a procedure for adjudication of stamp duty?
A person can seek the opinion of the Collector of Stamps by making an application to him for adjudication of stamp duty payable by such person on the instrument. For this purpose, the person who is a party to the instrument has to furnish a true copy of the instrument and an affidavit stating the facts and such other evidences as required, along with prescribed fee. The Collector’s opinion is final and conclusive. No appeal lies against his order of adjudication.
Can a person grant a power of attorney for signing and registering instrument?
Yes. Persons residing abroad or those who travel frequently are advised to grant power of attorneys to facilitate better management of their flats.
Is an agreement for sale of a flat /shop/office required to be stamped and registered?
Yes. An agreement for sale of a flat /shop/office is required to be stamped and registered as per prevalent law.