Amendment to the Bombay Stamp Act, 1958

By M.K. Gokhale
Dy. Supdt. of Stamps, Mumbai. (Retd.)
Hon’ble Finance Minister Mr. Jayant Patil has announced to reduce and rationalise the rates of stamp duty. He has proposed to reduce stamp duty and declare that maximum rates of stamp duty would be 5%. This suggestion is based keeping in view the comparative rates applicable in other states. He has also proposed to have Rs.  100/- as the minimum stamp duty payable under Articles which requires Non-Judicial Stamp Paper. He has also proposed to simplify and decentralise the process of giving refunds for used stamps.
With a view to amend certain Tax Laws in operation in the State of Maharashtra, Govt. of Maharashtra has placed L. A. Bill No. XXI of 2004, in the legislature Chapter II of the Maharashtra Tax Laws (Levy Amendment and Validation) Act, 2004 is for the purpose of Amendments to the Bombay Stamp Act, 1958. Certain Sections and Articles have been amended. The said Act is likely to come in force with effect from 01-07-2004.
Major amendments have taken place in respect of Article 36-A of the Schedule-I to the B. S. Act, 1958. This Article applies to the Leave and License Agreement.
Article 36-A has been totally amended and for clause (a), new clause is now substituted, as shown below :-
(a) where the leave & licence agreement purports to be for a term not exceeding thirty three months with our without the renewal clause and relates to property situated within the limits of –
(i) The District of Mumbai city and Mumbai Suburban District :
(A) Where the amount of average  Seven Hundred Fifty rupees
annual rent plus the amount of for every term of eleven
security deposit, or money months or part thereof
advanced or to be advanced does
not exceed rupees two Lakh Fifty
Thousand for a Single term of
eleven months.
(B) Where the amount of average annual    One thousand five hundred
rent plus the amount of security deposit or  rupees for every term of
money or advanced or to be advanced eleven months or part thereof.
exceeds Rupees Two Lakh fifty thousand
but does not exceed Rupees Five lakh for
Single Term of eleven months.
(C) Where are amount of average annual    Three thousand rupees for
rent plus the amount of security deposit or  every term of eleven months
money advanced or to be advanced or part thereof.
exceeds rupees five lakh for a single
terms of eleven months.
 
(ii) The Municipal Corporation of the cities of Thane, Pune, Nagpur and Navi Mumbai, Nashik, Pimpri-Chinchwad, Kolhapur, Aurangabad, Amravati, Solapur, Sangli and Cantonments of Pune, Kirkee, Dehu Road, Devlali and Aurangabad. –
(A) Where the amount of average annual  Five hundred rupees for every
rent plus the amount of security deposit or  term of eleven months or
money advanced or to be advanced does part thereof.
not exceed rupees two lakh fifty thousand
for a single term of eleven months.
 
(B) Where the amount of average annual  One thousand rupees for
rent plus the amount of security deposit  every term of eleven months
or money advanced or to be advanced or part thereof
exceeds or to be advanced exceeds
rupees five lakh for a single term of
eleven months.
 
(C) Where the amount of average  Two thousand rupees for every term of
annual rent plus the amount of security  eleven months or part thereof.
deposit or money advanced or to be
advanced exceeds rupees five lakh for
a single term of eleven months.
 
(iii) In any other area excluding the area referred to in Sub-clauses (i) and (ii)
 
(A) Where the amount of average  Three hundred rupees for every term of
annual rent plus the amount of security  eleven months or part thereof.
deposit or money advanced or to be
advanced does not exceed rupees two
lakh fifty thousand for a single term
of eleven months.
 
(B) Where the amount of average  Six hundred rupees for every term of eleven
annual rent plus the amount of security  months or part thereof.
deposit or money advanced or to be 
advanced exceed rupees two lakh fifty
thousand but does not exceeds rupees
five lakh for a single term of eleven
months.
 
(C) Where the amount of average annual  One thousand rupees for every term of
rent plus the amount of security deposit  eleven months or part thereof.
or money advanced or to be advanced
exceeds rupees five lakh for a single
term of eleven months.
 
While calculating stamp duty on such Leave and Licence Agreement, it is necessary to take into account of average annual rent as well as security deposit for a single term of eleven months as well as rate of stamp duty for every term of eleven months and part thereof.
With a view to avoid less payment of stamp duty on such Leave and Licence Agreement, one should go for adjudication under Sec. 31 of B.S. Act, 1958 in which case, adjudication fee of Rs. 100/- is to be paid. Such application is to made to Collector of Stamps of the District. If the applicant pays the stamp duty assessed by the Collector, the Collector shall proceed under Sec. 32 of the Act and certify the said instrument by endorsement that the full duty with which it is chargeable has been paid and then he shall return the said instrument to the applicant.





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4 thoughts on “Amendment to the Bombay Stamp Act, 1958

  1. How one can get refund of stamp duty paid, if deal is cancelled with the builder before possession. What are the conditions for refund of stamp duty. What is the time limit for cancellation of deal with the builder.

  2. Dear Sir, We had franked the stamp of Rs. three lacks ten thaousand for getting loan from the bank on 3rd Nov.2010. Due to some reason we could not avail loan and the doccuments were not excuted.The bank returned us doccuments on June 1st,2011. We approched stamp office for refund at Registar office near yellow gate and got reply that after six month you can not apply for refund. Kindly guide us how we can proceed to get refund of stamp duty paid by us.

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