1. WHAT IS STAMP DUTY & REGISTRATION:-
Stamp Duty is one type of tax which has to be paid to the Government under Section 3 of The Indian Stamp Act, 1899. It is payable on documents relating to the transfer / sale / rent of property including agreements to sell, conveyance deed, gift deed, mortgage deed, exchange deed, deed of partition, power of attorneys, leave and license agreement, agreement of tenancy, lease deeds and Deed of Assignment, etc. The documents have to be properly stamped before registration.
On Payment of Stamp Duty on document it gets evidentiary value and can be admitted as evidence in Courts under the provisions of the Indian Stamp Act, 1899.
Registration is the process of recording a copy of a document, transferring the title in immovable property in the office of the Sub Registrar of Assurances. The registration is done by the Sub Registrar of Assurances of the jurisdiction, where the property is situated. An entitlement to the said property is invalid unless the registration is completed.
2. HOW STAMP DUTY IS CALCULATED:-
Stamp duty is calculated on the Government value or the Agreement value of the property, whichever is higher.
The government publishes the Ready Reckoner rates every year of the various places which can be find out from http://igrmaharashtra.gov.in/eASR/frmMap.aspx
Government value of the property is calculated on Ready Reckoner rate of Open Area & Built up area of the property.
Government value of the property also depends on various following things:
- Age of Property
- Jurisdiction of the property (Urban or Rural)
- Freehold / Leasehold
- Residential / Commercial / Industrial
- Agriculture / Non Agriculture
When calculating the Government value of the property, Depreciation of the property on constructed area of Industrial Shed or RCC structure is also considered depending on the age of Property as follows:
| AGE OF PROPERTY (In Years) | DEPRECIATION (In %) |
| 0 to 2 | 0 % |
| Above 2 to 5 | 5 % |
| Above 5 to 10 | 10 % |
| Above 10 to 20 | 20 % |
| Above 20 to 30 | 30 % |
| Above 30 to 40 | 40 % |
| Above 40 to 50 | 50 % |
| Above 50 to 60 | 60 % |
| Above 60 | 70 % |
Stamp Duty is calculated in % on Government Value or Agreement Value of the Property whichever is higher.
Stamp Duty charges vary from 4 % to 7 % depending upon the jurisdiction where the property is situated.
3. REGISTRATION CHARGES:-
Registration charges are 1% of the Market Value or Agreement Value, whichever is higher subject to Maximum of Rs. 30,000/-
4. LEAVE & LICENSE AGREEMENT:-
A leave and license agreement is an agreement wherein the licensor allows the licensee to temporarily occupy and use the immovable property for certain period but not exceeding 60 Months.
Stamp Duty for Leave & License Agreement is calculated on the Security Deposit + Rent for the period of agreement. The exact Stamp Duty on Leave & License Agreement can be find out from https://efilingigr.maharashtra.gov.in/ereg/
Registration Charges for Leave & license Agreement are Rs. 1000/-.
Need more information about Stamp Duty & Registration or any other Deeds and Documentations. Reach us at:
Ascent Supply Chain Consultants Private Limited,
406 Raheja Arcade, Sector-11, CBD Belapur,
Navi Mumbai – 400614, MH – India.
Tel: 02248974888
+91-22-4897-4888
Email:info@ascc.in
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