Published On: Sat, Apr 25th, 2015

Stamp Duty on Agreement for Sale prior to 10-12-1985 is Rs. 5 only

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By Santosh Kumar & Sunit Gupta

By Accommodation Times News Services
After the announcement of the Stamp Duty Amnesty 2008, there are some consultants and self designated specialists who are misguiding the people b strongly advising that full stamp duty will be charged on agreement for sale even prior to 10-12-1985. Not only that they are stressing that even the registered document will also attract stamp duty. Failing which 10 times the stamp duty amount will be levied as penalty at the time of conveyance. Most of the people are very much confused because at Stamp duty office they are not accepting documents prior to 10-12-1985 contrary to advise given by the consultants. Please note there is no denying the benefit of amnesty, because all such documents are duly stamped, hence they do not need further stamping, as such the benefit of amnesty does not arise.
Our office has been receiving several telephonic clarifications, since we are the publishers of the Ready Reckoner’s for all earlier years. To clarify this doubt GLOBUS spoke to Santosh Kumar, senior estate valuer and co-author of the Stamp Duty Ready Reckoner and Market Value of Flats in Mumbai / Thane, who clarifies the doubt as under.
The stamp duty on agreement for sale prior to 10-12-1985 is Rs. 5 only and no more stamp duty will be charged on all such documents. This point was also clarified by Dr Nitin Kareer, I.G.R. Maharashtra, during a public meeting held on 11-4-2004 at K.C. College, Mumbai. In this connection Law and Judiciary Department of the Government of Maharashtra, has also issued a clarification on 24-1-1995, the same is reproduced on backside, which is self explanatory. In view of this clarification all such documents can be annexed with the deed of confirmation on Rs. 100 stamp paper only and the deed of confirmation will be registered annexed with agreement for sale on Rs. 5 Stamp paper. There are several such documents already registered by the sub-registrar of assurance Mumbai, that can be inspected under the Right to Information Act. In case of difficulty one should not hesitate to contact I.G.R. Maharashtra, Pune.
The agreements for sale prior to 10-12-1985 are classified in two groups. One that is registered and another one not registered. As such these agreements will be treated differently at the time of conveyance in favor of the society. Here it is necessary to clarify that stamp duty was applicable even prior to 10-12-1985, but there was an option for payment at the time conveyance. However, for conveyance executed up-to 16-3-1988, residential flat up-to 650 sq ft carpet area was fully exempted from stamp duty and area up-to 1000 Sq ft was exempted up-to 60% of the stamp duty. Because of this provision there is a general notion that there was no stamp duty prior to 10-12-1985.
Now at the time of conveyance, stamp duty liability of all the present members must be cleared. For the liability of registered agreement on Rs. 5 Stamp paper, prior to 10-12-85, the market value (not agreement value) as on the date of agreement will be considered, as purchase price agreement value only, because market value concept was not there at that time. The document which is not registered will be valued as per present market value, subject to depreciation, and stamp duty will be charged, in all the cases, as applicable today.
Regarding Stamp Duty on documents executed on 10-12-1985 and there after, all such documents must be registered after paying the stamp duty, failing which penalty at the rate of two times (not 10 times) of the deficit stamp duty will be charged. During amnesty this penalty is maximum Rs. 1000 only. At the time of conveyance they will not be required to pay any duty again, against their respective flats.
Comparative chart of stamp duty liability on agreement dated 1981 is as per Table-B.
From this example it is clear that if the document is registered, stamp duty will be Rs. 2,200 only against Rs. 1,29,000 for non registered document.

Courtesy Globus

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Displaying 32 Comments
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  1. Bhupesh Keshan says:

    As per the last paragraph, the amnesty scheme is in force. where can I read the official notification of the same ?

  2. where can I find the link to the Amnesty Scheme 2015 Notification?

  3. C N KRISHNAN says:

    I had purchased the flat in May,1984 by entering into an Agreement for Sale on 4th May,1984. The said agreement was on a stamp paper of Rs.5/- and was not registered. I now intend to sell the flat and the purchaser has been advised by his consultant that unless the agreement dated 4.5.1984 is not registered, he should not go ahead with the deal. The area of the flat is 580sq.ft carpet.

    Request you to kindly advice:

    1. Whether the agreement was required to be registered at the time it was entered into?
    2. Whether the same can now be registered?
    3. I am advised that stamp duty at the rate prevailing today and also on the market value as on date will have to be paid in case the agreement is to be registered today. The amount works to Rs.2,40,000/-

    Regards

    C N Krishnan

    • admin says:

      1. No, it was not compulsory then.

      2. Yes

      3. No Stamp Duty to be paid since the Duty started in 1985. Even if Stamp Duty is to be paid it has to be at 1985 rate and not prevailing. Get the documents Adjudicated from the Registrar.

      • O K Sharma says:

        Our Society member purchased their flats before 10-12-1985 and paid Stamp Duty of Rs.5 and 1%Registration Fee. Now on Conveyance The Authorities have asked to pay Stamp Duty on market value with Penalty. Under Amnesty Scheme they were given clearance that the Stamp duty is in order and matter closed.
        Please give your advise in this matter.

  4. Raj says:

    Hi there,

    I had purchased a open plot in 1996 of admeasuring 2496.82sq.ft. At the time of purchase I didnt registed the document now I’m planing to do it. would you be able to guide me with the amenity scheme. what is the process to do it will it be the normal way of registration or do i have to follow any norms to do it?
    Please help.

    • admin says:

      There is no amnesty scheme going on in any state in India. You will have to pay Duty on prevailing rate along with 200% penalty if in Maharashtra.

  5. padmini says:

    SIR MY BROTHER PURCHASE 175 SQ FT FLAT FOR 30000//- AT BHYANDER EAST IN JULY 1985 FROM BUILDER AND IN OCTOBER 1991 PURCHASED 275 SQ FT FLAT IN RESALE IN SAME LOCATION FOR 60000- AND PAID STAMP DUTY FOR RS 1405/- IN 1997
    MY BROTHER EXPIRED IN 2002 AND I AM REGISTERED NOMINEE OF ABOVE MENTIONED FLATS. NOW I WANTS TO REGISTER IN MY NAME AND AFTER WANTS TO SELL.I CONSULTANT WITH ADVOCATE SAYING HAVE TO PAY STAMP DUTY ALONG WITH PENALITY FOR BOTH FLATS.
    HINDLY ADVISE
    REGARDS

  6. ATUL DOSHI says:

    WHERE WILL WE GET NOTIFICATION STAMP DUTY OF SALE OF AGREEMENT AMNESTY SCHEME LAUNCHED BY MAH GOVT IN JUNE 1995 APPROX., ANY LINK
    PL REPLY

  7. my father purchase a flat at pune on 18.03.1970 by agreement executed on Rs. 5 stamp which is not registered. now my father wants to make gift deed in my favour, what to do for the same.

  8. MR HARIDAS NAIR says:

    we want to purchase a flat in Mumbai from the owner of the flat which was purchased by him in 1974(from the builder). At that time he had paid a stamp duty of Rs.3.80 but had not registered the agreement between him and the builder. The area is 590 sq. ft (carpet)
    Now we wish to know what will be the implication/liability on us if we buy the flat.
    1. can we buy the flat even if the seller has not registered the flat
    2 can we enter into an agreement with the seller and register the sale deed without registering the sellers earlier documents

  9. mr selvarajan j . Naidu says:

    Sir flat is named in my sister in laws adjoined with my brother name so now i have to transfer the same flat in my name earlier the same flat i was power of attorney in my name in yr 2010 transfered in name of sister in law can u pls guide me can i get any benefit in stamp duty or in registration

  10. Sir the said property is located in kharghar dist raigad taluka panvel 1bhk flat approx 550 sqft in society plot developed in yr 2000

  11. KK says:

    My father purchased a flat in 1986 in mumbai for 75,000/- 270sq ft area, than he dint paid the stamp duty & registration fee. Now we want to sell the flat do we need to pay the stamp duty & registration fee now, if yes will it be prevailing rate or old rate? Please advice.

  12. Dinesh says:

    Dear sir.
    I have purchased my flat in. 1985 May .given document for registration in May 1985 but not received back from department.where should I inquire about my document.

  13. I have purchased a flat of 640 Sq. Ft. in Andheri West in the year 1980. We ahve done the agrremnent in Stamp paper but not registered at that time. Now our housing society is trying to make the conveyance and told me to pay the Stamp Duty. Is there any Stamp Duty applicable on this transaction and if yes then how much? Do you have any calculations.

    I really appreciate your early reply.

    Thanks,
    Narnedra Shah

  14. vinod says:

    we purchased a residential flat in the year 1984 on the stamp paper of Rs. 5/-, but did not get it registered. the property was transferred to legal heir in the year 1999 after the death of the original buyer.the conveyance of the society is taking place now. so what is our stamp duty liability.

  15. O K Sharma says:

    I have purchased Flat as per agreement – Registration No.416 dated 16th April 1985 and applied under Amnesty Scheme on 28-09-1994 for which I received a letter from Addl. District Collector of Stamps, Senapati Bapat Marg, Pune 411053. informing me that I have paid Stamp Duty as per Mumbai Stamp Act, 1958, since the agreement dated 18th February, 1985.
    Now on Conveyance Deed procedure, the Addl. District Collector of Stamp Duty has asked for payment of Stamp Duty Rs.28,850 + Penalty Rs.250.
    What can I do to solve the issue of Stamp duty at this stage?

  16. Remigius says:

    The builder of my property entered in to an agreement with me the landowner, on 31st Dec.1985.However he paid the stamp duty required amount in 1997. which was signed and stamped by the stamp duty office. Upto this date he has not registered my documents….and as he had given us an indemnity ‘Undertaking’ that he would indemnify me from all costs and claims from any act of commission or omission by a document, can I till now hold him responsible for not registering my documents as to neglect have my full title rights to be a member of the society and that up to the date registration is not done by him neither the society which is already registered in 2006, and also the BMC authorities will not lay any claim on my past taxes, as he has not registered the stamped documents and that it will be fully recovered by the concerned authorities from this builder till he registers the documents.

  17. Dharmendra shah says:

    My father has purchased flat measuring 582 sq.ft.in 1982 from investor at a price of 90000/-.later after my father’s death in 1998. it has been transferred in my name. our society has applied for deemed conveyance in which I recd notice to pay stamp duty as per current rate.( Rs. 287000/-) I did applied in amnesty scheme in 2008. in which I get reply of nil duty at that time.

    can you please advise , what to do ?

  18. Dear Sir, Agreement for sale is done in the year 1983 with Rs 5 stamp attached. How do i get my agreement registered as the lawyer is saying builder is required. Builder is not available, even the Co. has closed down. What do I do please help me incase in future I want to sell my flat what should I do?

  19. Rahul says:

    Dear Sir,In 2011 November the AMNESTY Scheme in that One sided agreement registration was valid or Not?

  20. Jigar says:

    Hi,
    I am planning to purchase resale flat. Chain agreement details are as under.
    1) 1st agreement dated 22nd May 1985 and
    2) 2nd agreement dated 8th May 1999
    Both agreements are not registered. But 2nd agreement is given for adjudication and required stamp duty will be paid on it in sometime.
    But please confirm whether any stamp duty is payable on 1st agreement dated 22nd May 1985 at the time of deemed conveyance of the property? If yes then what rate, value and penalty will be applied. Agreement value was around 1.50 Lakhs.

    • Jigar says:

      Also please confirm whether stamp duty on 1st agreement can be paid now or shall we wait for any order at the time of deemed conveyance in future?

  21. MUKESH says:

    Dear sir,
    Please advise what is rule for stamp duty in 1998?
    Was it calculate on carpet + 20%
    Or on built-up/super built-up area?
    My full details as follows:
    I bought my flat in 1998 and paid stamp duty and registration charges according the rules.
    But I have not received agreement from office.
    Now I requested for same. Registration Authority asking me to pay more amount for stamp duty + 4 times penalty.
    Please advise what is rule for stamp duty in 1998?
    Is it on carpet + 20%
    Or on built-up/super built-up?
    In 2008 one letter I had been sent by authority where they asked me to pay Rs.3012 as duty + 3012 is penalty.
    But now they are not tellin g reason for increase duty so much Rs.60000/-.
    Please advise.

  22. MUKESH says:

    Dear sir,
    Our society is going to submit documents for deemed convenience. I do not have registered documents of my flat which i applied for same to registration authority. But registration authority is charging me high stamp duty and penalty even I had paid already.
    What my society can take action for getting late to submit documents?

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