17. Various types of Duties (S.D., REG., D.H.C.)

A.  STAMP DUTY :

Stamp Duty is the Tax payable on instrument or documents and not on instrument.

The stamp Duty is levied under The Bombay Stamp Act, 1958, In this Act to levy the stamp duty on certain types of documents executed. The various types of documents are covered under different 6 Articles listed in Schedule I appended to the Act.

Stamp Duty is charged on the basis of the contents of the documents only. The importance of paying stamp duty on instruments bestows legality on parties. Such instruments get evidentiary and are admitted as evidence in court of law.

The instruments which are not properly stamped are not admitted in evidence by the court.

Stamp duty is a tax which is levied on Properties transaction of Selling or purchases, where the document is drafted, executed and while going for the registration one of the party (mostly purchaser) has to pay stamp duty on it as per the state government has mentioned. The said transaction is valid even in the court of law the parties has right to get justice otherwise the validity is in question and Court do not admit the case.

One stamp paper shall not be used for another transaction or parties transaction. And if any further litigation under such stamp or on transaction is raised such instrument are not admitted in evidence for any purpose.

Stamp Duty Paid By :

The liability for payment of stamp duty is indicated in Section 30 of the Bombay stamp act 1958.

No	Document Type	By
1	Various Agreement(s)	Purchaser(s)
2	Lease Agreement	Lessee(s)
3	Deed of Exchange	Equal Share

 

Stamp Duty Payable :

It is payable on instrument before or at the time of execution or the next working day. The vital thing is that it is not payable on the title or the heading given on the top of the instruments but on recitals as stated in the instruments.

Validity of Stamp Paper :

Up to 30th November 1989 stamp paper was valid for any period of time.

However from 01 December 1989 all stamp papers (whether purchased before on or after 01.12.1989) is valid for a period of 6 Months from the date of Purchase and after that it is treated as ordinary paper as if it has no stamp. As per provision of Section 52-B, the stamp which are purchased and not used within 6 months shall be rendered invalid thereafter.

 

Stamp Duty Refund :

A person can claim refund of stamp duty for stamps, unintentionally spoiled, rendered unfit for the purpose originally intended and also other reasons as mentioned in Section 47 of Bombay Stamp Act,1958.

Such application for refund must be submitted within 6 months from the date of purchase of stamps to the Joint District Registrar and Collector of Stamps of the concerned District.

However, court fee stamps and court fee paper is valid for any period of time as there is no limit specified in the Bombay Court Fees Act, 1959 for its use.

The document which is chargeable with Stamp Duty can be prepared on the Non – Juridical Stamp Paper of appropriate value.

Impounding of Instrument / Document :

Every person having by law or by consent of parties by authority to receive evidence & every person in charge of public officer before whom any instrument or Document chargeable with stamp duty is produced or comes in the performance of his functions, shall if it appears to him that instrument or document is not valid.

Such impounded instrument or document is required to be forwarded to the collector of Stamps for recovery of deficit Stamp Duty in addition to penalty at the rate of 2% per month on the duty evaded amount.

Penalties for Stamp Duty Evasion :

The earlier stamp has been paid less intentionally or by any means and to recover the deficit Stamp Duty, the Collector of Stamps had the power to recover the penalty from the Parties up to 2 times the amount of evaded stamp duty in terms of provisions contained in Sub Sec 1(b) of Section 39 of Bombay Stamp Act, 1958.

The penalty shall be charged at a uniform rate of 2% per month the maximum penalty is 200% of the Stamp Duty amount.

In addition the parties can also be prosecuted under Sec.42 of the Bombay Stamp Act.

Any person which also includes persons employed or cornered in preparation of the instrument who with intent to defraud the government, executes any instruments without setting forth therein the full and true facts or makes any false statements or does any other acts calculated to deprive the government of any duty or penalty under the Bombay Stamp Act, can be prosecuted under the provisions of Section 62 of the Bombay Stamp Act.

The parties are penalized for not stating true facts & circumstances in the instruments because non-disclosure of relevant facts & circumstances lead to evasion of Stamp Duty.

B. REGISTRATION :

Under Section 17 (1) & Section 17 (1A) of The Registration Act, 1908, various documents concern to transfer of movable & immovable properties are required to be registered.

Excluding the Transfer of Shares of Co-operative Housing Society and Housing Limited Company where registration is optional but in cases of transfer of immovable properties (such as family arrangement, Agreement to Sell, Lease, Mortgage, Exchange Deed, Power of Attorney etc. documents

If a particular document is to be registered under this Registration Act, but not registered then as per Section 49 of the Act, that document becomes inadmissible in the Court of Law. In other word it loses its legal validity in the eyes of law i.e. the proper legal title will not pass on to the purchaser/ transferee i.e. the title will be defective if registration of the document is not done.

The registration fees 1% of the higher value of (Market or Government Rate) or maximum Rs.30,000/-

Computer Service charges at the rate of Rs.20/- per page (i.e. Document Handling Charges-D.H.C.) is charged in additional to above computer services.

When one goes for registration after four months and before eight months of execution of the document, he is charged a penalty which could be up to 10 times of registration fees . This is a penalty for delay in presenting the document before the registrar and not for non-payment of registration fees.

The registration process is implemented to provide discipline and public notice concerning transactions in relation to immovable property. The Act provides for mandatory registration of certain documents to protect them from any type of fraud.

                     

                       SPECIMEN OF STAMP DUTY & REGISTRATION CHALLEN 

When Challan Generate

When Challan Credited to Registration Department

Specimen of Defaced Challan

C. Document Handling Charges  (D.H.C.) :

 Document Handling Charges are the charges where the document has been executed and the same has been presented for registration process, before registration process   Stamp Duty & Document Handling Charges of document has to be paid, for D.H.C. the charges are Rs.20/- per page to treasurer of registration department through sub registrar as these are the charges where your document(s) all pages are in the custody and managed by registration office for number of activities such as for stamping, entering Document Number page numbers and Scanning the said document to display on their portal, an in future if needed the person can get its certified copies. 

In case pages are more than 100, generate Permanent Registration Number (P.R.N.) in multiples of 100 Pages.(i.e. generate 2 PRNs for 200 pages, 3 for 300 and so on while generating Challan of D.H.C.

Specimen copy of DHC Challan: