1. The Maharashtra Stamps Act

2. Maharashtra stamp Act Came into force on 16th February, 1959.
Intended to levy Stamp duty on certain types of documents executed in the State or brought from outside.
The various instruments/documents are covered under 63 articles listed in Schedule-I .

3. A fiscal measure enacted to secure revenue for the state from certain classes of instruments.
It is to be interpreted strictly and in a manner in favour of the subject.
A document which is not stamped, though required to be stamped or is understamped, is not by that reason, invalid as between the parties.

4. The Principles
1. For charging stamp duty, the instrument is not to be treated by the name it bears but by the substance or real nature of the transaction recorded therein.
2. The stamp duty is imposed upon the instrument and not upon the transaction.
3. The instruments or documents have to be read as they are i.e. as they are worded or drafted.

5. Rates at which stamp duty is levied on instruments are mentioned in Schedule I of the Act.
Act levies Stamp duty on instruments by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded.

6. What is Stamp Duty ?
It is a type of tax which is paid for the transaction performed by way of an instrument under the provisions of the Maharashtra Stamp Act and Indian Stamp Act, 1899.

7. Why to pay Stamp Duty on an instrument ?
The payment of proper Stamp duty on instruments bestows legality on them.
Such instruments get evidentiary value.
They are admitted in evidence in Court of law.
The instruments which are not properly stamped are not admitted in evidence .

8. Articles of Indian Stamp Act, 1899 which attract Stamp duty in Maharashtra
Article No Description of instrument.
Bill of Exchange
Bill of Lading
Debenture
Letter of Credit
Policy of Insurance
Promissory Note
Proxy
Receipt
Transfer

9. What is meant by execution of instruments?
Execution means putting signatures on the instruments by the person/persons executing the instruments.

10. How Stamp Duty is calculated.?
Broadly the 63 articles of Schedule I are grouped in three categories.
Category I-
Articles whose amount of Stamp duty is fixed irrespective of the value mentioned in the document / instrument.
Ex. Administration Bond, Adoption deed, Affidavit, Divorce, Appointment in execution of power , Apprenticeship deed, Article of clerkship, Award, Cancellation deed, Charter party, Duplicate, Copy of Extracts, Entry of Memorandum of Marriage, Indemnity Bond, Letter of license, Memorandum of Association of a company, Notarial Act, Power of attorney, etc.)

11. Category II
Articles where depending upon the value mentioned in the document, the amount of stamp duty varies.
Ex. Deposit of title deeds, Pawn, Pledge or Hypothecation, Clearance List, Lease , Articles of Association, Mortgage deed, Security Bond, etc.)

12. Category III
Articles which attracts Stamp duty on the consideration mentioned in the document or True Market Value, whichever is higher.
Ex. Conveyance, Agreement for sale, Gift, Exchange, Partnership Deed, Partition, Development Agreement, Transfer, Trust, etc.)
Expertise in valuation is required.

13. At what point of time Stamp Duty is payable. ?
Instruments executed in the state shall be stamped before or at the time of execution or immediately thereafter or on the next working day following the day of execution. (Section 17)
Instruments which are executed out of the state - within three months from its receipt in the state. (Section 18)

14. Several instruments used in single transaction of sale, mortgage or settlement. (Section 4)
In the case of any sale, mortgage, lease or settlement, several instruments are employed for completing the transaction,
The Principal instrument only shall be
chargeable with the duty prescribed in
Schedule I .
Each of the other instruments shall be
chargeable with a duty of one hundred
rupees only.

15. Instrument relating to several distinct matters (Section 5)
Any instrument comprising or relating to several distinct matters shall be chargeable with the aggregate amount of the duties with which separate instrument, each comprising or relating to one of such matters, would be chargeable under this Act.

16. Section 6-Instrument coming within several descriptions in Schedule I -
An instrument so framed as to come within two or more of the description in Schedule I .
Where the duties chargeable there under are different,
Chargeable only with the highest of such duties.

17. Nature of the Instrument is important.
Section 28.
Executants to disclose and truly set forth relevant facts and circumstances in the instruments.
Type of transactions involved in the instruments helps in the determination of proper stamp duty payable .
Duty is not payable on the title or the heading given on the top of the instrument but on the recitals as stated in it.

18. In whose name the stamps are required to be purchased ?
The stamps are required to be purchased in the name of one of executors to the instrument.
If not so, such instruments are not admitted in evidence,
They are also treated as not properly stamped.
Liable to be impounded and sent to the Collector of Stamps for recovery of proper stamp duty.

19. Rates of Stamp Duty – for instruments charged on MV
W.e.f (Rationalization)
Rural Areas – 3%
Influence Zones & MMRDA area
& All Municipal Councils – 4%
All Municipal Corporations – 5%

20. Who is liable to pay Stamp Duty ?
In the absence of an agreement to the contrary, by the person making such instrument - certain kinds of documents viz. Mortgage deed, Release, Security bond, Settlement, Bond etc.
Conveyance - the grantee.
Lease - the lessee.
Exchange of property - both the parties in equal share.
Partition - the parties thereto in proportion to their respective shares. (Section 30)
Any other–person executing the instrument.

21. DEPARTMENT OF REGISTRATION AND STAMPS
Liability of Banks & Financial Institutions – section 30A
Any instrument created in favour of or by any financial institution such as Bank, Non-Banking finance company, Housing Finance Company or alike.
Liability to pay proper stamp duty shall be on such financial institution concerned.
Without affecting their right, if any, to collect it from the other party.

22. DEPARTMENT OF REGISTRATION AND STAMPS
Banks / Fin Inst to impound the instrument , if proper stamp duty is not paid
In respect of any such instrument executed before , and are effective and where proper stamp duty is not paid,
then the financial institution shall impound such instrument on or before the 30th September 2013 and forward the same to the Collector for recovery.
(Under scrutiny of High Court)

23. DEPARTMENT OF REGISTRATION AND STAMPS
Consequence of Failure on the part of Bank or Financial Institution
Where the financial institution fails to impound such instrument as provided,
then the concerned financial institution shall be liable to pay a penalty equal to the stamp duty payable on such instrument.

24. What is meant by adjudication of instruments?
Section 31- Adjudication means determining the chargeability of stamps duty on instruments.
Collector of Stamps appointed in each District.
Application with true copy or an abstract of the instrument and also with such affidavit or other evidence as may be necessary to prove that all facts affecting the chargeability of the instrument have been truly set forth in the instrument .
Proof of payment of Rs. 100/- as adjudication fee.
Adjudication can be done both for signed as well as unsigned documents.

25. How to pay Stamp Duty ?
e-Payment (GRAS - Govt Receipts Accounting System)
eSBTR (Electronic Secured Bank & Treasury Receipt) *
Stamp paper ( Judicial & Non-Judicial)
Adhesive stamps (Labels)
Franking (only upto Rs 5000)

26. Consequences of not paying Stamp duty?
If not duly stamped- shall not be admissible in evidence .
Section 59 - intention to evade the Stamp duty, executes or signs any instruments without the same being duly stamped, shall
On conviction- Imprisonment for not less than one month but which may be extended upto six months and fine upto Rs
Section 67 and 68 empowers the authorities to enter upon any premises and to inspect and impound/seize the documents which are not duly stamped and burden is cast upon every public officer to assist the authorities in detection of evasion.
Documents impounded for want of proper duty, attracts 2 % per month from the date of execution , max upto 4 times the amount.

27. What is the validity of Stamps ?
Section 52-B, the stamps which are purchased and not used within six months shall be rendered invalid thereafter.
The stamps purchased and not used for intended purpose are entitled for refund after deduction of 10% in case of stamp paper & franking, while 1% or max Rs 1000 in e-payment.
Refund if lodged within six months from the date of purchase and on fulfilling the conditions stipulated.

28. Refund of Stamp Duty Section 47-Allowance for spoiled stamps-
(a) the stamp on any paper inadvertently and undesignedly spoiled, obliterated or by error in writing or any other means rendered unfit before any instrument written thereon is executed by any person.
(b) the stamp on any document which is written out wholly or in part, but which is not
signed or executed by any party thereto

29. (c) the stamp used for an instrument executed by any party thereto which-
(1) Afterwards found to be absolutely void in law from the beginning;
(2) has been afterwards found unfit, by reason of any error or mistake therein,
(3) by reason of the death of any person by whom it is necessary that it should be executed, without having executed the same, or of the refusal of any such person to execute the same
(4) for want of the execution thereof by some material party, and his inability or refusal to sign the same,
(5) by reason of the refusal of any person to act or to advance any money ,
(6) non-acceptance of any office .

30. (6) Becomes useless in consequence of the transaction intended is effected by some other instrument between the same parties and bearing a stamp not of less value;
(7) Deficient in value and the transaction intended to be thereby effected had been effected by some other instrument between the same parties and bearing a stamp not of less value;
(8) Inadvertently and undesignedly spoiled, and in -lieu whereof another instrument is made between the same parties and for the same purpose is executed and duly
stamped:

31. Time limit for Refund Application
47(c) – Within 6 months of the date of instrument.
If the registered Agreement to Sale is cancelled within 5 years , then refund can be claimed within 6 months thereafter.
In any other case- within 6 months from the date of purchase of the stamp.

32. Impounding of Instruments
Section 33-
Every person in charge of a public office (Except Police officer) – if it appears to him that such instrument is not duly stamped,
Impound the same.
Shall send to the Collector of Stamps an authenticated copy of such instrument,
CoS - upon payment of a penalty (2% p.m. Max 4 times) as per S. 34.
Certificate in writing stating the amount of duty and penalty levied in respect thereof.

33. True Market Value
The price which such property would have fetched if sold in open market on the date of execution of such instrument or the consideration stated in the instrument whichever is higher.
Decision of Collector of Stamps of a district (Adjudication u/s 31 –on true market value)
Appeal under Section 32B
Deputy IGR (Divisions other than Mumbai )
Additional Controller of Stamps (for Mumbai & MSD)

34. Annual Statement of Rates (ASR)
The Maharashtra Stamp(Determination of True Market Value of Property) Rules, 1995
JDTP (Valuation) prepares the ASR- Average rates of lands & buildings in rural & urban area- submit to CCRA by 31st Oct every year.
CCRA issues ASR every year on 1st January.

35. Powers of CCRA 32C. Revision.
Chief Controlling Revenue Authority may, suo moto, call for and examine the record of any order passed (including an order passed in appeal) by any officer and pass such order thereon as he thinks just and proper; and the order so passed shall be final and shall not be called in question in any Court or before any authority:

36. Appellate powers of Chief Controlling Revenue Authority. (Section 53)
Section 53 (1A) - Any person aggrieved by an order of the Collector of Stamps may file an Appeal.
Within sixty days from the date of receipt of such order,
By a fee of Rs 300.

37. Revisional Powers of CCRA (S
Revisional Powers of CCRA (S. 53A) – over the decisions of Collector of Stamps u/s 32, 39 and 41.
When through mistake or otherwise any instrument is charged with less duty than leviable thereon, or is held not chargeable with duty, by the Collector of Stamps,
Within a period of six years from the date of certificate of the Collector.
Directs the concerned party to produce before him the instrument.
Hear and order to pay deficit Stamp Duty.

38. State Govt’s Power to reduce, remit or compound stamp duty (Section 9)
The State Government ,if satisfied that it is in the public interest,
By rule or order published in the Official Gazette,-
(a) reduce or remit, whether prospectively or retrospectively, the duties on any instruments or any class of instruments or any of the instruments belonging to such class, or executed by or in favour of any particular class of persons.

39. Instruments by or on behalf of the Govt
No duty shall be chargeable in respect of any instrument executed by or on behalf of, or in favour of, the Government in cases, where, but for this exemption, the Government would be liable to pay the duty chargeable in respect of such instrument or where the Government has undertaken to bear the expenses towards the payment of the duty.

40. True Market Value in case of Govt or Semi govt body or Undertakings or Local Authorities
Rule 4(6)-
If a property is sold, alloted or purchased on the basis of the predetermined price, then the value determined by said bodies shall be the True Market Value.

41. Recent amendments in Maharashtra Stamp Act
Department of Registration and Stamps
Recent amendments in Maharashtra Stamp Act
Maharashtra Stamp (Amendment) Act, 2015
[wef 24/04/2015]
Insertion of section 10D – Certain departments, organizations, institutions etc. to ensure payment of Stamp Duty
Section 10D to authorize govt. & semi-govt. bodies including banking and non-banking financial institutions for ensuring that the stamp duty is paid on unregistered (optional) documents passing through their system.
Such Stamp Duty to be paid on the GRAS.
CCRA to authorize a person nominated by such body as a Proper Officer for defacing the challans and making endorsements on such instruments
State Govt. to notify the list of such bodies.

42. Recent amendments in Maharashtra Stamp Act
Department of Registration and Stamps
Recent amendments in Maharashtra Stamp Act
Amendment in section 68 - Power to inspect and call for information
Any officer not below the rank of Collector of Stamps may authorize any officer not below the rank of Sub Registrar Grade-I or Inspector of Stamps
To inspect or call for any register, books, records or any electronic records
On discovery of any fraud or omission in relation to any duty
May seize and impound only the chargeable documents as per section 33 of the Mah Stamp Act.

43. Recent amendments in Maharashtra Stamp Act
Department of Registration and Stamps
Recent amendments in Maharashtra Stamp Act
Insertion of section 67A – Obligation to furnish information
Any individual, institution, organization, company, or a body responsible for creating, executing, maintaining, recording, verifying an instrument chargeable with duty.
To furnish information when called upon by any officer authorized by the CCRA
Failure to attract a penalty of not less than Rs. 500 which may extend to Rs. 10, 000 for each failure
State Govt. to notify such bodies

44. For any assistance related to Registration of document & payment of stamp duty , please visit or Call , 7 AM to 9 PM, All days.

45. THANKS