What is Stamp Duty , What is Stamp duty payable, lots of questions , our motto is to aware consumer more
Stamp duty is a very important factor in structuring transactions, specially with many of the states in India imposing high stamp duties on documents to shore up their revenues.
 

Q. What is Stamp Duty?
Ans -It is a tax collected by the government, which must be paid on time. If there is delay in payment, it attracts penalty.
  • Q. Is Stamp Duty payable on the instruments or transaction?Open or Close

    Ans- A stamp duty paid instrument/document is a proper and legal instrument/document and such as gets evidentiary value and is admitted as evidence in courts. The instruments/documents not properly stamped are not admitted in evidence by the court.

  • Q. When is the Stamp duty payable?Open or Close

    Ans-It is payable either before execution of the document/instrument or on the next working day of executing such instrument/document instrument means putting signatures on the instrument by persons executing the instruments.

  • Q. What is the penalty for the delayed payment?Open or Close

    Ans-If Stamp duty is not paid on time, it attracts the penalty at the rate of 2% per month on the deficit amount of Stamp duty. However maximum penalty can be only 2 times of the deficit amount of the stamp duty. (This amendment has come into force from 01-05-2001). Documents lodged with sub-registrar/superintendent of stamps prior to any amnesty scheme will attract lump sum penalty of Rs. 250 or Rs. 300 only, as the case may be.

  • Q. Who is liable to pay stamp duty?Open or Close

    Ans-In the absence of any agreement to the contrary the purchaser/transferee has to pay stamp duty or in case of exchange of properties both parties have to bear stamp duty equally.

  • Q. In whose name are the Stamp papers required to be purchased?Open or Close

    Ans-From 01/05/1994 stamp papers are to be purchased in the name of one of the parties to the instrument/document. If the stamp paper is not in the name of the parties and it is used for preparing the agreement it will be treated as if no stamp paper is used. However it will not make the agreement invalid and can be enforced in law if proper stamp duty is paid subsequently.
    Prior to 01/05/1994 stamp paper could be purchased in any name and was valid for any period of time. However from 01/05/1994 stamp paper has a life of six months only and after that it is treated as ordinary paper as if it has no stamp.

  • Q. Is stamp duty on the consideration amount stated in the document or on the market value of property as determined by stamp duty authorities?Open or Close

    Ans- Please contact our office at the below address for further details:
    B-63, VIP Estate, Khamhardih, Shankar Nagar Raipur (C.G.)
    Phone: 0771 – 2282269, Mobile: 8120008250
    Email : gm.rcpinfra@gmail.com

  • Q. What is the market value of a property?Open or Close

    Ans-Market value in relation to any property which is the subject matter of the instrument means the price which such property would such property would have fetched if sold in open market on the date of execution of such instrument or document or the consideration stated ion the instrument whichever is higher. However, for payment of stamp duty, market value is the value as worked out as per ready reckoner or the consideration stated in the instrument whichever is higher. As per new amendment in the Income Tax act The Market Value for the purpose of Capital Gains Tax is the same as the Market Value for Stamp Duty payment, which is worked out as per ready reckoner. Hence it is advisable that the seller should record actual selling price worked out with the help of ready reckoner and avoid under valuation with the intention to save capital gain tax.

  • Q. What is the use fullness of Stamp Duty Ready Reckoner?Open or Close

    Ans-As explained earlier Stamp Duty is charged on the market value of the property purchased and not on the agreement value. Now the question arises as to how to arrive at the Market Value. The Stamp Duty Ready Reckoner, by Santosh Kumar and Sunit Gupta, contains precisely this information in easy to understand language. It contains market rate of property fixed by government for each zone in each locality / village / division. It further contains details about certain additions and allowable deductions to be made in valuation. It also contains valuation factor to help ascertaining the market value. In all it contains everything including all guideline, rule, table, rate and map that is required while arriving at the market value on which the stamp duty is charged. Further all these rule, tables, guidelines and rates are adopted as per guidelines approved by the Town Planning and Valuation Authority, Government of Maharashtra and which is used by Stamp Duty and Registration department to ascertain Market value of the property under consideration. This book is available in market for Rs. 250/- only.

  • Q. Where can a person pay stamp duty?Open or Close

    Ans- Please contact our office at the below address for further details:
    B-54, VIP Estate, Khamhardih, Shankar Nagar Raipur (C.G.)
    Phone: 0771 – 2282000, 2282269, Mobile: 8120008257
    Email : rp_realestate@rediffmail.com