PROPOSED AMENDMENTS TO BOMBAY STAMP ACT1958
By Accommodation Times Bureau
By Samir Sanghavi Chartered Accountant
Proposed Increase in Stamp Duty on Leave and License Agreements – Amendment to Article 36A of Schedule I to the Bombay Stamps Act, 1958 (“the Act”)
Leave and license agreements are charged under Article 36A of Schedule I to the Act. With a view to mobilize revenue, the Maharashtra Government had put forward a proposed hike in stamp duty with respect to leave and license agreements for residential and commercial properties. Some of the relevant provisions which would have been likely to be affected if the provisions were to come into force are as under:
(1) An individual taking a flat having market value of Rs.4,00,00,000/- (Rupees Four Crore Only) on leave and licence basis for 36 months will have to pay stamp duty of Rs.40,000/- (Rupees Forty Thousand Only).
(2) A top Indian corporate wishing to enter into a leave and license agreement for commercial premises on a property having market value of Rs.2,00,00,000/-(Rupees Two Crore Only) for a period of 60 months in Lower Parel will have to pay stamp duty of Rs. 80,000/- (Rupees Eighty Thousand Only).
However, due to several objections received to the above proposal, the Chief Minister’s office and the revenue department have deferred the decision to hike the stamp duty for the time being.