MAHARASHTRA STAMP ACT, 1958

MAHARASHTRA STAMP ACT, 1958

Preamble 1 - MAHARASHTRA STAMP ACT 

[1] [MAHARASHTRA STAMP ACT]

[Act, No. LX of 1958][2]

PREAMBLE

An Act to consolidate and amend the law relating to stamps and stamp duties in the State of Bombay

Whereas it is expedient to consolidate and amend the law relating to stamps and rates of stamp duties other than those in respect of document specified in entry 91 of List-I in the Seventh Schedule of the Constitution of India in the State of Bombay; It is hereby enacted in the Ninth Year of the Republic of India as follows :- 

Section 1 - Short title, extent and commencement

(1)     This Act may be called [3] [the Maharashtra Stamp Act].

(2)     It extends to the whole of the [4] [State of Maharashtra].

(3)     It shall come into force on such date[5] as the State Government may, by notification in the Official Gazette, direct.

Section 2 - Definitions

In this Act, unless there is anything repugnant in the subject or context,--

(a)      "association" means any association, exchange, organisation or body of individuals, whether incorporated or not, established for the purpose of regulating and controlling business of the sale or purchase of, or other transaction relating to, any goods or marketable securities;

[6] [(aa) "Additional Controller of Stamps, Mumbai" means the officer or officers so designated by the State Government and includes any other officer whom the State Government may, by notification in the Official Gazette, appoint in this behalf ;]

(b)      [7] ["banker" means an association, a company or a person who accepts, for the purpose of lending or investment, deposits of money from the public, repayable on demand or otherwise and withdrawable by cheque, draft, order or otherwise;]

(c)      ?"bond" includes?

(i)       any instrument whereby a person obliges himself to pay money to another on condition that obligation shall be void if a specified act is performed, or is not performed, as the case may be;

(ii)      any instrument attested by a witness and not payable to order or bearer, whereby, a person obliges himself to pay money to another; and

(iii)     any instrument so attested whereby a person, obliges himself to deliver grain or other agricultural produce to another;

[8] [Explanation.--Notwithstanding, anything contained in any law for the time being in force, for the purposes of this clause, "attested" in relation to an instrument, means attested by one or more witnesses each of whom has seen the executant sign or affix his mark to the instrument, or has seen some other person sign the instrument in the presence and by the direction of the executant, or has received from the executant a personal acknowledgement of his signature or mark or of the signature of such other person, and each of whom has signed the instrument in the presence of the executant; but it shall not be necessary that more than one of such witnesses shall have been present at the same time, and no particular form of attestation shall be necessary.]

(d)      "chargeable" means, as applied to an instrument, executed or first executed after the commencement of this Act, chargeable under this Act, and as applied to any other Instruments, chargeable under the law in force in the State when such Instrument was executed or, where several persons executed the instrument at different times, first executed;

[9] [(dd) "Chief Controlling Revenue Authority" means such officer as the State Government may, by notification in the Official Gazette, appoint in this behalf for the whole or any part of the [10] [State of Maharashtra];]

(e)      "clearance list" means a list of transactions relating to contracts required to be submitted to the clearing house of an association in accordance with the rules or bye-laws of the association:

Provided that no instrument shall, for the purposes of this Act, be deemed to be a clearance list unless it contains the following declaration signed by the person dealing in such transaction or on his behalf by a properly constituted attorney, namely:--

"I/We hereby solemnly declare that the above list contains a complete and true statement of my/our transactions [11] [including crossed out transactions and transactions required to be submitted to the clearing house in accordance with the rules/bye-laws of the association]. I/We further declare that no transaction for which an exemption is claimed under Article 5 or Article 43 in Schedule I to the Bombay Stamp Act, 1958, as the case may be, is omitted."

Explanation.--Transaction for the purpose for this clause shall include both sale and purchase;

(f)       "Collector" means [12] [* * *] the Chief Officer in charge of the revenue administration of a district and includes any officer whom the State Government may, by notification in the Official Gazette, appoint in this behalf;

[13] [and on whom any or all the powers of the Collector under this Act are conferred by the same notification or any other like notification]

(g)      [14]"Conveyance" includes,--

(i)?? ?a conveyance on sale,

(ii) ???every instrument, [15][x]

(iii) ???every decree or final order of any Civil Court,

[16] [(iv) every order made by the High Court under section 394 of the Companies Act, 1956] [17][in respect of amalgamation or reconstruction of companies; and every order made by the Reserve Bank of India under section 44A of the Banking Regulation Act, 1949 in respect of amalgamation or reconstruction of Banking Companies;]

by which property, whether movable or immovable, or any estate or interest in any property is transferred to, or vested in, any other person, inter vivos, and which is not otherwise specifically provided for by Schedule I;

Explanation.--An instrument whereby a co-owner of any property transfers his interest to another co-owner of the property and which is not an instrument of partition, shall, for the purposes of this clause, be deemed to be an instrument by which property is transferred inter vivos;]

[18] [(ga) "Deputy Inspector General of Registration and Deputy Controller of Stamps" means the officer or officers [19] [so designated by the State Government and includes any other officer whom the State Government may, by notification in the Official Gazette, appoint in this behalf]];

(h)     "duly stamped" as applied to an instrument means that the instrument bears an adhesive or impressed stamp of not less than the proper amount and that such stamp has been affixed or used in accordance with the law for the time being in force in the State;"

(i)       "executed" and "execution" used with reference to instruments, mean "signed" and "signature";

[20] [Explanation.--The terms "signed" and "signature" also include attribution of electronic record as per section 11 of the Information Technology Act, 2000.]

(j)       "Government securities" means a Government security as defined in the Public Debt Act, 1944;

[21] [(ja) "immovable property" includes land, benefits to arise out of land, and things attached to the earth, or permanently fastened to anything attached to the earth;]

(k)      "impressed stamp" includes,--

(i) ???labels affixed and impressed by the proper officer;

(ii) ?? stamps embossed or engraved on stamped paper;

[22] [(iii) impression by franking machine;

(iv) ???impression by any such machine as the State Government may, by notification in the Official Gazette, specify;];

[23] [(v) ?Receipt of e-payment;]

(l)       "instrument" includes every document by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded, but does not include a bill of exchange, cheque, promissory note, bill of lading, letter of credit, policy of insurance, transfer of share, debenture, proxy and receipt;

[24] [Explanation.-The term "document" also includes any electronic record as defined in clause (t) of sub-section (1) of section 2 of the Information Technology Act, 2000.]

[25] [(la) "instrument of gift" includes, where the gift is of any movable [26] [or immovable] property but has not been made in writing, any instrument recording whether by way of declaration or otherwise the making or acceptance of such oral gift;]

(m)    "instrument of partition" means any instrument whereby co-owners of any property divide or agree to divide such property in severally and includes?

(i)       a final order for effecting a partition passed by any revenue authority or any civil court,

(ii)      an award by an arbitration directing a partition, and

(iii)     when any partition is effected without executing any such instrument, any instrument or instruments signed by the co-owners and recording, whether by way of declaration of such partition or otherwise, the terms of such partition amongst the co-owners;

(n)     "lease" means a lease of immovable[27] [or movable (or both)] property, and includes also,--

(i) ???a Patta;

(ii) ???a Kabulayat, or other undertaking in writing not being a counterpart of a lease to cultivate, occupy or pay or deliver rent for immovable property;

(iii) ???any instrument by which tolls of any description are let;

(iv) ?any writing on an application for a lease intended to signify that the application is granted;

[28] [(v) a decree or final order of any Civil Court in respect of a lease :

Provided that, where subsequently an instrument of lease is executed in pursuance of such decree or order, the stamp duty, if any, already paid and recovered on such decree or order shall be adjusted towards the total duty leviable on such instrument;]

[29] [(na) "market value", in relation to any property which is the subject matter of an instrument, means the price which such property would have fetched if sold in open market on the date of execution of such instrument][30] [for the consideration stated in the instrument whichever is higher;]

(o) ??"marketable security" means a security of such description as to be capable of being sold In any stock market in India. [31] [* * *];

(p) ??"mortgage deed" includes every instrument whereby, for the purpose of securing money advanced, or to be advanced, by way of loan, or an existing or future debt, or the performance of an engagement, one person transfers or creates to, or in favour of, another, a right over or in respect of specified property;

[32] [(pa) 'movable property' includes standing timber, growing crops and grass, fruit upon and juice in trees and property of every other description, except immovable property, by which any right or liability is or is purported to be created, transferred, limited, extended, extinguished or recorded;]

(q) ???"paper" includes vellum, parchment or any other material on which an instrument may be written;

(r) ???"power of attorney" includes any instrument (not chargeable with a fee under the law relating to court-fees for the time being in force) empowering a specified person to act for and in the name of the person executing it[33] [and includes an instrument by which a person, not being a person who is a legal practitioner, is authorised to appear on behalf of any party in any proceeding before any court, tribunal or authority];

[34] [(ra) "public officer" means a public officer as defined in clause (17) of section 2 of the Code of Civil Procedure, 1908;]

(s) ??"Schedule" means a Schedule appended to this Act;

(t) ???"settlement" means any non-testamentory disposition in writing of movable or immovable property made,--

(i)       in consideration of marriage,

?

(ii)      for the purpose of distributing property of the settler among his family or those for whom he desires to provide, or for the purpose of providing for some person dependent on him, or

(iii)     for any religious or charitable purpose, and

includes an agreement in writing to make such a disposition and where any such disposition has not been made in writing any instrument recording whether by way of declaration of trust or otherwise, the terms of any such disposition;

(u) ???"soldier" includes any person below the rank of a non-commissioned officer who is enrolled under the Army Act, 1950.

Section 3 - Instrument chargeable with duty

Subject to the provisions of this Act and the exemptions contained in Schedule I, the following instruments shall be chargeable with duty of the amount indicated in Schedule I as the proper duty therefor respectively, that is to say--

(a)      every instrument mentioned in Schedule I, which not having been previously executed by any person, is executed in the State on or after the date of commencement of this Act;

(b)      every instrument mentioned in Schedule I, which not having been previously executed by any person, is executed out of the State on or after the said date, relates to any property situate, or to any matter or thing done or to be done in this State and is received in this State:

[35] [Provided that a copy or extract, whether certified to be a true copy or not and whether a fascimile image or otherwise of the original instrument on which stamp duty is chargeable under the provisions of this section, shall be chargeable with full stamp duty indicated in the Schedule I if the proper duty payable on such original instrument is not paid]

[36] [Provided further that] no duty shall be chargeable in respect of--

(1)     any instrument executed by or on behalf of, or in favour of, the Government in cases, where, but for this exemption, the Government would be liable to pay the duty chargeable in respect of such instrument[37] [or where the Government has undertaken to bear the expenses towards the payment of the duty];

(2)     any instrument for the sale, transfer or other disposition, either absolutely or by way of mortgage or otherwise, of any ship or vessel, or any part, interest, share or property of or in any ship or vessel registered under the Bombay Coasting Vessels Act, 1838, or [38] [Merchant Shipping Act, 1958].

Section 4 - Several Instruments used in single transaction of development agreement sale, mortgage or settlement

 4. Several Instruments used in single transaction of [39] [development agreement] sale, [40] [lease,] mortgage or settlement.--

(1) ???Where, in the case of any [41] [(development agreement)] [42] [lease,] sale,[43] [lease,] mortgage or settlement, several instruments are employed for completing the transaction, the principal instrument only shall be chargeable with the duty prescribed in Schedule I for the conveyance, [44] [(development agreement)][45] [lease,]  mortgage or settlement, and each of the other instruments shall be chargeable with a duty of [46] [one hundred rupees] instead of the duty (if any) prescribed for it in that Schedule.

(2) ???The parties may determine for themselves which of the instruments so employed shall, for the purposes of sub-section (1), be deemed to be the principal instrument.

[47] [(3) If the parties fail to determine the principal instrument between themselves, then the officer before whom the instrument is produced may, for the purposes of this section, determine the principal instrument:]

Provided that the duty chargeable on the instrument so determined shall be the highest duty which would be chargeable in respect of any of the said instruments employed.

Section 5 - Instruments relating to several distinct matters

Any instrument comprising or relating to several distinct matters shall be chargeable with the aggregate amount of the duties with which separate instruments, each comprising or relating to one of such matters, would be chargeable under this Act.

Section 6 - Instruments coming within several descriptions in Schedule I

Subject to the provisions of section 5, an instrument so framed as to come within two or more of the descriptions in Schedule I shall, where the duties chargeable thereunder are different, be chargeable only with the highest of such duties:

Provided that nothing in this Act contained shall render chargeable with duty exceeding[48] [one hundred rupees] a counterpart or duplicate of any instrument chargeable with duty and in respect of which the proper duty has been paid.  

Section 7 - Payment of higher duty in respect of certain instruments

(1)     Notwithstanding anything contained in section 4 or 6 or in any other enactment, unless it is proved that the duty chargeable under this Act has been paid,--

(a)      on the principal or original instrument, as the case may be, or

(b)      in accordance with the provisions of this section the duty chargeable on an instrument of sale, mortgage or settlement other than a principal instrument or on a counterpart, duplicate or copy of any instrument shall, if the principal or original instrument would, when received in this State have been chargeable under this Act with a higher rate of duty, be the duty with which the principal or original instrument would have been chargeable under section 19.

(2)     Notwithstanding anything contained in any enactment for the time being in force, no instrument, counterpart, duplicate or copy chargeable with duty under this section shall be received in evidence unless the duty chargeable under this section has been paid thereon:

Provided that any Court before which any such instrument, duplicate or copy is produced may permit the duty chargeable under this section to be paid thereon and may then receive it in evidence.

(3)     [49] [The provisions of this Act and the rules made thereunder, in so far as they relate to the recovery of duties chargeable on instruments under section 3 shall, so far as may be, apply to the recovery of duties chargeable on a counterpart, duplicate or a copy of an instrument under sub-section (1).]

Section 8 - Bonds or securities other than debentures issued on loans under Act IX of 1914 or other law

(1)     Notwithstanding anything in this Act, any local authority raising a loan under the provisions of the Local Authorities Loans Act, 1914, or of any other law for the time being in force, by the issue of bonds or securities other than debentures shall, in respect of such loan, be chargeable with a duty of [50] [two per centum] on the total amount of such bonds or securities issued by it, and such bonds or securities need not be stamped, and shall not be chargeable with any further duty on renewal, consolidation, sub-division or otherwise.

(2)     The provisions of sub-section (1) exempting certain bonds or securities from being stamped and from being chargeable with certain further duty shall apply to the bonds or securities other than debentures of all outstanding loans of the kind mentioned therein, and all such bonds or securities shall be valid, whether the same are stamped or not.

(3)     In the case of wilful neglect to pay the duty required by this section the local authority shall be liable to forfeit to the State Government a sum equal to ten per centum upon the amount of duty payable, and a like penalty for every month after the first month during which such neglect continues.

Section 9 - Power to reduce, remit or compound duties

The State Government [51] [,if satisfied that it is necessary to do so in the public interest,] may, by rule or order published in the Official Gazette,--

(a)      reduce or remit, whether prospectively or retrospectively, in the whole or any part of the State the [52] [duties or penalty, if only, or both] with which any instruments or any particular class of instruments or any of the instruments belonging to such class, or any instruments when executed by or in favour of any particular class of persons, or by or in favour of any members of such class, are chargeable, and

(b)      provide for the composition or consolidation of duties in the case of issues by any incorporated company or other body corporate of bonds or marketable securities other than debentures.

Section 10 - Duties how to be paid

(1)     Except as otherwise expressly provided in this Act, all duties with which any instruments are chargeable shall be paid and such payment shall be indicated on such instrument, by means of stamps,--

(a)      according to the provisions herein contained; or

(b)      when no such provision is applicable thereto, as the State Government may, by rules, direct.

(2)     The rules made under sub-section (1) may, among other matters, regulate,--

(a) ???in the case of each kind of instrument, the description of stamps which may be used;

(b) ???in the case of instruments stamped with impressed stamps, the number of stamps which may be used.

[53] [(2-1A) From the date of coming into force of the Bombay Stamp (Amendment) Ordinance, 2003, in the case of instruments, stamped with impressed stamps, such stamps shall bear the stamp and signature with date, of the authorised officer of the Treasury, Sub-treasury or the General Stamp Office in the State or of the proper officer appointed by the Chief Controlling Revenue Authority, Superintendent of Stamp or Collector of Stamps in the State :

Provided that, the Chief Controlling Revenue Authority may, by notification in the Official Gazette, from the specified date, do away with such requirement.]

[54] [(2A) The Chief Controlling Revenue Authority may, subject to such conditions as he may deem fit to impose, authorise use of franking machine or any other machine specified under sub-clause (iv) of clause (k) of section 2, for making impressions on instrument's chargeable with duties to indicate payment of duties payable on such instruments;

(2B) (a) Where the Chief Controlling Revenue Authority or the Superintendent of Stamps, Bombay when authorised by the Chief Controlling Revenue Authority in this behalf, is satisfied that having regard to the extent of instruments executed and the duty chargeable thereon, it is necessary in public interest to authorise any person, body or organisation to such use of franking machine or any other machine, he may, by order in writing authorise such person, body or organisation;

(b) ???Every such authorisation shall be subject to such conditions, if any, as the Chief Controlling Revenue Authority may, by any general or special order, specify in this behalf.

(2C) The procedure to regulate the use of franking machine or any other machine as so authorised shall be such as the Chief Controlling Revenue Authority may, by order determine.]

[55] [(3) Notwithstanding anything contained in sub-section (1), the Chief Controlling Revenue Authority, shall, by notification in the Official Gazette, specify the instruments in Schedule I in respect of which the duties chargeable, as specified in column 2 of the said Schedule shall be paid,--

(i) ???by means of a franking machine;

(ii) ???by way of cash;

(iii) ??by demand draft; [56] [***]

(iv) ??by [57] [pay order; or]

[58] [(v) ?by e-payment;]

in any Government Treasury or Sub-Treasury or General Stamp Office, [59] [or, as the case may be, Government Receipt Accounting System (G.R.A.S.) (Virtual Treasury)] and such payment shall be indicated on such instrument by endorsement to that effect made on the instrument by the proper officer duly notified by the Chief Controlling Revenue Authority for this purpose.].

[60] [Explanation.-- For the purposes of this sub-section, the expressions "demand draft" and by " pay order] mean the demand draft or pay order issued by the State Bank of India constituted under State Bank of India Act, 1955 or, a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer or Undertakings) Act, 1970 or, under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 or, any other bank being a scheduled bank as defined in clause (e) of section 2 of the Reserve Bank of India Act, 1934.]

[61] [(3A) The procedure to regulate the use of e-payment, through Government Receipt Accounting System (G.R.A.S.) (Virtual Treasury) for payment of duty shall be such as the Chief Controlling Revenue Authority may by an order determine.]

[62] [(4) An impression made under sub-sections (2A), (2B) and (2C) or, as the case may be, an endorsement made under sub-section (3), [63] [or under sub-section (2) of section 32A] on any instruments, shall have the same effect as if the duty of an amount equal to the amount indicated in the impression or, as the case may be, stated in the endorsement has been paid, in respect of, and such payment has been indicated on such instrument by means of stamps, under sub-section (1).]

Section 10A - Duties to be paid in cash, by demand draft or by pay by order by Government controlled bodies, Insurance Companies and Banks

[64] [10A. Duties to be paid in cash, by demand draft or by pay order by Government controlled bodies, Insurance Companies and Banks

Notwithstanding anything contained in section 10, the State Government may, by notification in the Official Gazette, direct that, in case of the bodies owned or controlled by the State or Central Government, Insurance Companies and Nationalised Banks, the duty may be paid by their Head Office or Regional Office or Zonal Office by way of cash, or by demand draft or by pay order, in any Government Treasury or sub-Treasury or General Stamp Office, Mumbai and the proper officer, not below the rank of Branch Manager, so notified by the Chief Controlling Revenue Authority, shall make an endorsement on the instrument as follows,--

"Stamp duty of Rs. . . . . . . . . . . . paid in cash or by demand draft or by pay order, vide Receipt/Challan No. . . . . . . . . . . . . . . dated the . . . . . . . . ."

Signature of Proper Officer]

Section 10B - Stock exchange etc., to deduct stamp duty from trading member?s account

[65] [10B. Stock exchange etc., to deduct stamp duty from trading member's account

Notwithstanding anything contained in this Act, in case of transactions through stock exchange or an association as defined in clause (a) of section 2 of the Forward Contracts (Regulation) Act, 1952, the stock exchange or, as the case may be, an association, shall collect the clue stamp duty by deducting the same from the trading member's account at the time of settlement of such transactions. The stamp duty so collected shall be transferred to the Government Treasury, Sub-Treasury or General Stamp Office in the manner specified by the Chief Controlling Revenue Authority.

Explanation. -- For the purposes of this section, "stock exchange" means the stock exchange as defined in clause (j) of section 2 of the Securities Contract (Regulation) Act, 1956.

Section 10C - Duties to be paid in cash, or by demand draft or by pay order by notary

[66] [Notwithstanding anything contained in section 10, in case of the notary appointed under the Notaries Act, 1952 (53 of 1952), for the whole or any part of the State of Maharashtra, the duty payable for performing the functions entrusted to him under any law for the time being in force, may be paid by him way of cash, or by demand draft or by pay order, in any Government Treasury or Sub-Treasury or General Stamp Office, Mumbai and the notary shall make an endorsement on the instrument as follows, namely :-

"Stamp Duty of Rs. ..................... paid 2in cash / by demand draft / by pay order, vide 2Receipt / Challan No. ................... dated the ................................., in [67]Government Treasury / Sub-Treasury office at .................... / the General Stamp Office, Mumbai.

  Seal of the notary.

Signature of notary with date.]

Section 10D - Certain departments organisations institutions etc., to ensure payment of stamp duty

[68] [10D. Certain departments organisations institutions etc., to ensure payment of stamp duty

[69][(1) Nothwithstanding anything contained in this Act, the State Government may, by notification in the Official Gazette, direct that any State Government Department, institution of local self-government, semi Government organization, banking or non-banking financial institution or the body owned, controlled or substantially financed by the State Government or any class of them, shall ensure that the proper duty is paid to the State Government through Government Receipt Accounting System (G.R.A.S.) or by any other system of payment as may be notified by the State Government in this behalf, in respect of such instruments, as may be specified in the  notification in which such Department or body, etc., is a party or which create a right in favour of such Department or body, etc., and of which registration is not compulsory :

Provided that, in case of instruments requiring stamp duty of less than rupees five hundred, the stamp duty may be paid to the State Government through any other mode of payment permissible under this Act and the provisions of sub-sections (2) and (3) shall not be applicable in case of such payment.]

(2) ???The Chief Controlling Revenue Authority shall authorise a person nominated by such Department or body, etc. as mentioned in sub-section (1) as a proper officer for defacing the challan[70] [electronically in the Government Receipt Accounting System (G.R.A.S.) or any other system of payment notified by the State Government in this behalf] and making the endorsement on such instruments.

(3) ???It shall be the duty of the proper officer so authorised under sub-section (2) to make an endorsement on the instruments after defacing the challan, as follows :-

"Stamp duty of Rs. _______ paid in *cash/by demand draft/by pay order/e-Challan, vide Receipt/Challan No._______________/GRN No._______________ CIN_____________ dated the ___________.

*Strike out whatever is not applicable.]

[71] [Provided that, whenever the Stamp Duty has been paid through Government Receipt Accounting System (G.R.A.S.) by receipt of e-payment i.e. electronically Secured Bank and Treasury Receipt (e-SBTR), the provisions of sub-sections (2) and (3) shall not be applicable.]

Section 11 - Use of adhesive stamps

The following instruments may be stamped with adhesive stamps, namely:--

(a)    ?? [72] [* * *]

[73] [(b) ?instruments mentioned at [74] [articles 1,] 5(a) to (g), 17, 29, 37, [75] [41], 42, 43, 59(a) and 62 in Schedule I.]

Section 12 - Cancellation of adhesive stamps

(1)     (a) Whoever affixes any adhesive stamp to any Instrument chargeable with duty which has been executed by any person shall, when affixing such stamp, cancel the same so that it cannot be used again; and

(b) ??Whoever executes any instrument on any paper bearing an adhesive stamp shall, at the time of execution, unless such stamp has been already cancelled in the manner aforesaid, cancel the same so that it cannot be used again.

(2)     Any Instrument bearing an adhesive stamp which has not been cancelled so that it cannot be used again, shall, so far as such stamp is concerned, be deemed to be unstamped.

(3)     The person required by sub-section (1) to cancel an adhesive stamp may cancel it by writing on or across the stamp his name or initials or the name or initials of his firm with the true date of his so writing, or in any other effectual manner.

Section 13 - Instruments stamped with impressed stamps how to be written

[76] [13. Instruments stamped with impressed stamps how to be written

Every instrument for which sheet of paper stamped with impressed stamp is used shall be written in such manner that the writing may appear on the face and, if required, on the reverse of such sheet so that it cannot be used for or applied to any other instrument.

Explanation I.-- Where two or more sheets of papers stamped with impressed stamps are used to make up the amount of duty chargeable in respect of any instrument, either a portion of such instrument shall be written on each sheet so used, or the sheet on which no such portion is written shall be signed by the executant or one of the executants, with an endorsement indicating that the additional sheet is attached to the sheet on which the instrument is written.

Explanation II.-- Where the sheet or sheets bearing impressed stamps is or are insufficient to admit of the entire instrument being written thereon, so much plain paper may be sub joined thereto as may be necessary for completing the writing of such instrument, provided a sub stantial part of the instrument is written on the sheet which bears the stamp before any part is written on the plain paper so sub joined; and such plain paper may or may not be signed by the executant but where it is not so signed it shall not render the instrument not duly stamped.]

Section 14 - Only one instrument to be on same stamp

No second Instrument chargeable with duty shall be written upon a piece of stamped paper upon which an instrument chargeable with duty has already been written:

Provided that nothing in this section shall prevent any endorsement which is duly stamped or is not chargeable with duty being made upon any instrument for the purpose of transferring any right created or evidenced thereby, or of acknowledging the receipt of any money or goods the payment or delivery of which is secured thereby.

Section 14A - Alterations in instruments how to be charged

[77] [14A. Alterations in instruments how to be charged

Where due to material alterations made in an instrument by a party, with or without the consent of other parties, the character of the instrument is materially or substantially altered, then such instrument shall require a fresh stamp paper according to its altered character.]

Section 15 - Instrument written contrary to sections 13, 14 or 14A deemed not duly stamped

15. Instrument written contrary to sections 13, [78] [14 or 14A deemed not duly stamped.]

Every instrument written in contravention of section 13[79] [14 or 14 A] sh all be deemed to be [80] [not duly stamped.]

Section 16 - Denoting Duty

Where the duty with which an instrument is chargeable, or its exemption from duty, depends in any manner upon the duty actually paid in respect of another instrument, the payment of such last mentioned duty shall, if application is made in writing to the Collector for the purpose, and on production of both the instruments, be denoted upon such first mentioned instrument by endorsement under the hand of the Collector in such other manner (if any) as the State Government may, by rules, prescribe.

Section 17 - Instruments executed in State

All instruments chargeable with duty and executed by any person in this State sh all be stamped before or at the time of execution [81] [or immediately thereafter] [82] [or on the next working day following the day of execution :]

[83] [Provided that the clearance list described in Article 19 , 20 , 21 , 22 or 23 of Schedule I may be stamped by an officer authorised by the State Government by rules made under this Act, if such clearance list is submitted for stamping by the clearing house of an Association in accordance with its rules and bye-laws with the requisite amount of stamp duty, within two months from the date of its execution.]

Section 18 - Instruments executed out of State

(1)     Every instrument chargeable with duty executed only out of this State may be stamped within three months after it has been first received in this State.

(2)     Where any such instrument cannot with reference, to the description of stamp prescribed therefor, be duly stamped by a private person, it may be taken within the said period of three months to the Collector, who shall stamp the same, in such manner as the State Government may by rule prescribe, with stamp of such value as the person so taking such instrument may require and pay for.

Section 19 - Payment of duty on certain instruments [or copies thereof] liable to increased duty in [Maharashtra State]

19. Payment of duty on certain instruments [84] [or copies thereof] liable to increased duty in [85] [Maharashtra State]

Where any instrument of the nature described in any article in Schedule I and relating to any property situate or to any matter or thing done or to be done in this State is executed out of the State and subsequently [86] [such instrument or a copy of the instrument is] received in the State,--

(a)      the amount of duty chargeable on such instrument [87] [or a copy of the instrument] shall be the amount of duty chargeable under Schedule I on a document of the like description executed in this State less the amount of duty, if any, already paid under any law in force in India excluding the State of Jammu and Kashmir on such instrument when it was executed;

(b)      and in addition to the stamps, if any, already affixed thereto such instrument [88] [or a copy of the instrument] shall be stamped with the stamps necessary for the payment of the duty chargeable on it under clause (a) of this section, in the same manner and at the same time and by the same persons as though such instrument[89] [or a copy of the instrument] were an instrument received in this State for the first time at the time when it became chargeable with the higher duty; and

(c)      the provisions contained in clause (b) of the proviso to sub-section (3) of section 32 shall apply to such instrument[90] [or a copy of such instrument] as if such were an instrument executed or first executed out of this State and first received in this State when it became chargeable to the higher duty aforesaid, but the provisions contained in clause (a) of the said proviso shall not apply thereto.

Section 20 - Conversion of amount expressed in foreign currencies

(1)     Where an instrument is chargeable with ad valorem duty in respect of any money expressed in any currency other than that of India, such duty shall be calculated on the value of such money in the currency of India according to the current rate of exchange on the day of the date of the instrument.

(2)     The rate of exchange for the conversion of British or any foreign currency into the currency of India prescribed under sub-section (2) of section 20 of the Indian Stamp Act, 1899, shall be deemed to be the current rate for the purpose of sub-section (1).

Section 21 - Stock and marketable securities how to be valued

Where an instrument is chargeable with ad valorem duty in respect of any stock or of any marketable or other security, such duty shall be calculated on the value of such stock or security according to the average price or the value thereof on the day of the date of the instrument.

Section 22 - Effect of statement of rate of exchange or average price

Where an instrument contains a statement of current rate of exchange, or average price, as the case may require, and is stamped in accordance with such statement, it shall, so far as regards the subject matter of such statement, be presumed until the contrary is proved to be duly stamped.

Section 23 - Instruments reserving interest

Where interest is expressly made payable by the terms of an instrument, such instrument shall not be chargeable with duty higher than that with which it would have been chargeable had no mention of interest been made therein.

Section 24 - Certain instruments connected with mortgages of marketable securities to be chargeable as agreements

(1)     Where an instrument ?

(a)      is given upon the occasion of the deposit of any marketable security by way of security for money advanced or to be advanced by way of loan, or for an existing or future debt, or

(b)      makes redeemable or qualifies a duly stamped transfer intended as a security or any marketable security it shall be chargeable with duty as if it were an agreement or memorandum of an agreement chargeable with duty under Article No. 5(h) of Schedule I,

(2)     A release or discharge of any such instrument shall only be chargeable with the like duty.

Section 25 - How transfers in consideration of debt or subject to future payments, etc. to be charged

[91] [25. How transfers in consideration of debt or subject to future payments, etc . to be charged

Where any property is transferred to any person --

(a)      in consideration, wholly or in part, of any debt due to him; or

(b)      subject either certainly or contingently to the payment or transfer (to hi m or any other person) of any money or stock, whether being or constituting a charge or encumbrance upon the property or not;

such debt, money or stock, shall be deemed to be the whole or part, as the case may be, of the consideration in respect whereof the transfer is chargeable with ad valorem duty:

Provided that, nothing in this section shall apply to any such certificate of sale as is mentioned in Article 16 of Schedule I.

Explanation. -- Where property is sold and sale is subject to a mortgage or other incumbrance, any unpaid mortgage money or money charged, together with the interest (if any) due on the same, shall be deemed to be part of the consideration for the sale, whether or not the purchaser expressly undertakes with the seller to pay the same or indemnify the seller if the seller has to pay the same:

Provided that, where any property subject to a mortgage is transferred to the mortgage, he shall be entitled to deduct from the duty payable on the transfer the amount of any duty already paid in respect of the mortgage.

Illustrations

1.        A owes B Rs.1, 000 . A sells a property to B , the consideration of the property being Rs.500 and the release of the previous debt of Rs.1, 000 . Stamp duty is payable on Rs.1, 500.

2.        A sells a property to B for Rs.500 . The property is subject to a mortgage to C for Rs.1 , 000 and unpaid interest of Rs.200 . The sale is subject to the mortgage, Stamp duty is payable on Rs.1, 700.

3.        ?A mortgages a house of the value of Rs.10 , 000 to B for Rs.5 , 000 . B afterwards buys the house from A. Stamp duty is payable on Rs.10 , 000 less the amount of stamp duty already paid for the mortgage.]

Section 26 - Valuation in case of annuity, etc.

Where an instrument is executed to secure the payment of an annuity or other sum payable periodically or where the consideration for a conveyance is an annuity or other sum payable periodically, the amount secured by such instrument or the consideration for such conveyance, as the case may be, shall, for the purposes of this Act, be deemed to be, --

(a)      where the sum is payable for a definite period so that the total amount to be paid can be previously ascertained, such total amount;

(b)      where the sum is payable in perpetuity or for an indefinite time not terminable with any life in being at the date of such instrument or conveyance, the total amount which, according to the terms of such instrument or conveyance, will or may be payable during the period of twenty years calculated from the date on which the first payment becomes due; and

(c)      where the sum is payable for an indefinite time terminable with any life in being at the date of such instrument or conveyance, the maximum amount which will or may be payable as aforesaid during the period of twelve years calculated from the date on which the first payment becomes due.

Section 27 - Stamp where value of subject-matter is indeterminate

Where the amount of value of the subject-matter of any instrument chargeable with ad valorem duty cannot be, or in the case of an instrument executed before the commencement of this Act, could not have been ascertained at the date of its execution or, first execution, nothing shall be claimable under such instrument more than the highest amount or value for which, if stated in an instrument of the same description, the stamp actually used would, at the date of such execution,[92] [have been sufficient, and the instrument shall be deemed to be insufficiently stamped as respects the excess amount and the provisions of section 34 shall accordingly apply in relation to the admission of the instrument in evidence:

Provided that, for the purpose of application to section 34 to such an instrument, it shall be sufficient if the deficiency in the duty is paid, and thereupon no penalty shall be levied :]

[93] [Provided further that] in the case of the lease of a mine in which royalty or a share of the produce is received as the rent or part of the rent, it shall be sufficient to have estimated such royalty or the value of such share, for the purpose of stamp duty, --

(a)      when the lease has been granted by or on behalf of the Government at such amount or value as the Collector may, having regard to all the circumstances of the case, have estimated as likely to be payable by way of royalty or share to the Government under the lease, or

(b)      when the lease has been granted by any other person, at [94] [fifty thousand rupees] a year and the whole amount of such royalty or share, whatever it may be, shall be claimable under such lease:

Provided also that, where proceedings have been taken in respect of an instrument under section 31 or 40, the amount certified by the Collector shall be deemed to be the stamp actually used at the date of execution.

Section 28 - Facts affecting duty to be set forth in instrument

The consideration (if any) [95] [the market value] and all other facts and circumstances affecting the chargeability of any instrument with duty, or the amount of the duty with which it is chargeable, shall be fully and truly set forth therein.

Section 29 - Direction as to duty in case of certain conveyances

(1)     Where any property has been contracted to be sold for one consideration for the whole, and is conveyed to the purchaser in separate parts by different instruments, the [96] [market value] shall be apportioned in such manner as the parties think fit, provided that a distinct[97] [market value] for each separate part is set forth in the conveyance relating thereto, and such conveyance shall be chargeable with ad valorem duty in respect of such distinct [98][market value].

(2)     Where property contracted to be purchased for one consideration for the whole, by two or more persons jointly, or by any person for himself and others, or wholly for others, is conveyed in parts by separate instruments of the persons, by or for whom the same was purchased, for distinct parts of the consideration, the conveyance of each separate part shall be chargeable with ad valorem duty in respect of the distinct part [99] [in respect of the market value of such part of the property].

(3)     Where a person, having contracted for the purchase of any property but not having obtained a -conveyance thereof, contracts to sell the same to any other person and the property is in consequence conveyed immediately to the sub-purchaser, the conveyance shall be chargeable with ad valorem duty[100] [in respect of the market value of the property at the time of sale] by the original purchaser to the sub-purchaser.

(4)     Where a person having contracted for the purchase of any property but not having obtained a conveyance thereof contracts to sell the whole or any part thereof, to any other person, or persons, and the property is in consequence conveyed by the original seller to different persons in parts the conveyance of each part sold to a sub-purchaser shall be chargeable with ad valorem duty [101] [in respect only of the market value of the part sold to the sub-purchaser, without regard to the amount of the market value of the property conveyed by the original seller, and the conveyance of the residue (if any) of such property to the original purchaser shall be chargeable with ad valorem duty in respect of the market value of such residue:]

Provided that notwithstanding anything contained in Article 25 of Schedule I the duty on such last mentioned conveyance shall in no case be less than[102] [ten rupees].

[103] [(5) Where a sub-purchaser takes an actual conveyance of the interest of the person immediately selling to him, which is chargeable with ad valorem duty in respect of the market value of the property which is the subject matter of the conveyance and is duly stamped accordingly, any conveyance to be made afterwards to him in respect of the same property by the original seller shall be chargeable with a duty equal to that which would be chargeable on a conveyance for the market value of the property which is the subject matter of the conveyance or where such duty exceeds[104] [fifty rupees] with a duty of 7[fifty rupees].]

Section 30 - (E)--Duty by whom payable

In the absence of an agreement to the contrary, the expense of providing the proper stamp shall be borne:--

(a)      in the case of any instrument described in any of the following articles of Schedule I, namely:--

No. 2 (Administration Bond),

No. 6 (Agreement relating to Deposit of Title-deeds, Pawn or Pledge),

No. 13 ( Bond),

No. 14 ( B ottomry Bond),

No. 28 (Customs Bond),

No. 33 (Further Charge),

No. 35 (Indemnity Bond),

No. 40 (Mortgage Deed),

No. 52 (Release),

No. 53 (Respondentia Bond),

No. 54 (Security Bond or Mortgage Deed),

No. 55 (Settlement),

No.[105] [59 (a)] (Transfer of debentures, being marketable securities whether the debenture is liable to duty or not, except debentures provided for by section 8 of the Indian Stamp Act, 1899),

No. 59 (b) (Transfer of any interest secured by a bond or mortgage deed or policy of insurance), by the person drawing or making such instrument;

(b)      in the case of a conveyance (including a conveyance of mortgaged property) by the grantee; in the case of a lease or agreement to lease by the lessee or intended lessee;

(c)      in the case of a counter part of a lease by the lessor;

(d)      in the case of an instrument of exchange by the parties in equal shares;

(e)      in the case of a certificate of sale by the purchaser of the property to which such certificate relates; [106] [x]

(f)       in the case of an instrument of partition by the parties thereto in proportion to their respective shares in the whole property partitioned, or, when the partition is made in execution of an ord er passed by a Revenue Authority or Civil Court or Arbitrator, in such proportion, as such Authority, Court or [107] [arbitrator directs; [108] [***]]

[109] [(f-a) in case of instruments of works contract as provided in Article 63 of SCHEDULE I, by the person receiving the contract;]

(g)      [110]in any other case, by the person executing the instrument].

Section 30A - Duties payable by financial institution

[111] [(1) ?Notwithstanding anything contained in section 30, where any instrument referred to in clauses (a) to (g) of section 30, is executed on or after the date of commencement of the Maharashtra Tax Laws (Levy and Amendment) Act, 2013 (Mah. VIII of 2013), in favour of or by any financial institution such as Bank, Non-Banking Finance Company, Housing Finance Company or alike, which creates any right in favour of any such financial institution, the liability to pay proper stamp duty shall be on such financial institution concerned without affecting their right, if any, to collect it from the other party [112] [, if the other party fails to pay the proper stamp duty].

(2)?? ?In respect of any such instrument executed before the date of commencement of the Maharashtra Tax Laws (Levy and Amendment) Act, 2013, (Mah. VIII of 2013) and are effective and where proper stamp duty is not paid, then the financial institution shall impound such instrument on or before the 30th September 2013 and forward the same to the Collector for recovery.

(3) ??Where the financial institution fails to impound such instrument as provided in sub-section (2), then the concerned financial institution shall be liable to pay a penalty equal to the stamp duty payable on such instrument.]

Section 31 - Adjudication as to proper stamps

[113] [(1) When an instrument, whether executed or not and whether previously stamped or not, is brought to the Collector, [114] [by one of the parties to the instrument and such person] applies to have the opinion of that officer as to the duty (if any) with which [115] [or the Article of Schedule I under which] it is chargeable and pay [116] [a fee of one hundred rupees] the Collector shall determine the duty (if any) with which [117] [or the Article of Schedule I under which] in his judgement, the instrument is chargeable].

(2) ???For this purpose the Collector may require to be furnished with [118] [a true copy or] an abstract of the instrument, and also with such affidavit or other evidence as he may deem necessary to prove that all the facts and circumstances affecting the chargeability of the Instrument with duty, or the amount of the duty with which it is chargeable, are fully and truly set forth therein and may refuse to proceed upon any such application until [119] [such true copy or abstract] and evidence have been furnished accordingly:

Provided that, --

(a)      no evidence furnished in pursuance of this section shall be used against any person in any civil proceeding, except in any inquiry as to the duty with which the instrument to which it relates is chargeable; and

(b)      every person by whom any such evidence is furnished shall, on payment of the full duty with which the instrument to which it relates is chargeable, be relieved from any penalty which he may have incurred under this Act by reason of the omission to state truly in such instrument any of the facts or circumstances aforesaid.

[120] [(3) ?Where the Collector acting under sub -sections (1) and (2) is not the Collector of the District and if he has reasons to believe that the market value of the property, which is the sub ject matter of the instrument, received by hi m for adjudication, has not been truly set forth therein,[121] [he shall, for the purpose of assessing the stamp duty, determine the true market value of such property, as laid down in the Bombay Stamp (Determination of True Market Value of Property) Rules, 1995.]

[122] [(4) When an instrument is brought to the Collector for adjudication,--

(i) ????within one month of the execution or first execution of such instrument in the State; or

(ii)??? if, such instrument is executed or first executed, out of the State, within three months from the date of first receipt of such instrument in this State the person liable to pay the stamp duty under section 30 shall pay the same within sixty days from the date of service of the notice of demand in respect of the stamp duty adjudicated by the Collector. If such person falls to pay the stamp duty so demanded within the said period, he shall be liable to pay a penalty at the rate of two per cent of the deficient portion of the stamp duty, for every month or part thereof, from the date of execution of such instrument, or as the case may be, date of the first receipt of such instrument in the State] :

[123] [Provided that, in no case, the amount of the penalty shall exceed [124] [four times] the deficient portion of the stamp duty.)

Section 32 - Certificate by Collector

(1)     When an Instrument brought to the Collector under section 31 , is in his opinion, one of a description chargeable with duty, and ?

(a)      the Collector determines that it is already fully stamped, or

(b)      the duty determined by the Collector under section 31, or such sum as with the duty already paid in respect of the instrument, is equal to the duty, so determined has been paid the Collector shall certify by endorsement on such instrument that the full duty [125] [(stating the relevant Article of Schedule I and the amount)] with which it is chargeable has been paid.

(2) ???When such instrument is, in hi s opinion, not chargeable with duty, the Collector shall certify in manner aforesaid that such instrument is not so chargeable.

(3) ? [126][Subject to the provisions of section 53 -A, any instrument upon which an endorsement has been made] under this section, shall be deemed to be duly stamped or not chargeable with duty, as the case may be; and, if chargeable with duty, shall be receivable in evidence or otherwise, and may be acted upon and registered as if it had been originally duly stamped:

Provided that nothing in this section shall authorise the Collector to endorse --

(a)      any instrument executed or first executed in the State and brought to him after the expiration of one month from the date of its execution or first execution as the case may be;

(b)      any instrument executed or first executed out of the State and brought to him after the expiration of three months after it has been first received in this State; or

(c)      any instrument chargeable with the duty of twenty naye paise or less when brought to hi m, after the drawing or execution thereof, on paper not duly stamped.

Section 32A - Instrument of conveyance, etc. undervalued how to be dealt with

[127] [32A. Instrument of conveyance, etc . undervalued how to be dealt with

(1)     Every instrument of conveyance, exchange, gift, certificate of sale, deed of partition or power of attorney to sell immovable property when given for consideration, deed of settlement or transfer of lease by way of assignment [128] [and also any other instruments mentioned in SCHEDULE I chargeable with duty on the basis of market value of the property], presented for registration under the provisions of Registration Act, 1908 , shall be accompanied by a true copy thereof: