Stamp Duty and Registration

Part 3

v     Procedure For Payment Of Stamp Duty

Stamp duty is payable on or before the date of execution of instruments. If the instrument is executed on a holiday, stamp duty can be paid on the next day.

                                                                 

There are different methods for payment of stamp duty.

The agreement can be typed on non-judicial stamp paper purchased from the stamp office. Such stamp papers must be purchased in the name of any of the parties to the agreement.

OR

Agreement prepared on plain paper must be submitted to the stamp office along with the required amount of stamp duty. The stamp office will accept cash and the blank agreement and return the duly stamped agreement within half an hour. Cash only up to Rs.25,000/- is accepted at the counter of the stamp office. If the stamp duty is more than Rs.25,000/- a demand draft/pay order in favour of the superintendent of stamps must be submitted to the stamp office. In such cases, stamped document are returned after 3-4 days.

If the party wants to pay amounts above Rs.25,000/- in cash, stamp duty can be paid in the Reserve bank of India along with a challan obtained from the stamp office. When the receipt issued by the Reserve bank acknowledging receipt of cash towards stamp duty, it is to be produced in the stamp office along with the blank agreement. The stamp office will affix the stamps and return the document on the same day.

The document submitted to the stamp office for affixing stamps as above should not have the date or signature on them.

v     Registration Of Documents

(i)   Compulsory registration

All agreements entered into with the builder for purchase of flats/shops/garage etc. must be compulsorily registered with the sub-registrar.

(ii)  Time Limit for Registration

Documents must be registered with the sub-registrar within four months from the date of execution of documents.

If the document cannot be registered within four months, registration can be made within the next four months on payment of penalty as may be decided by the sub-registrar.

If more than eight months have passed since the date of execution of agreement, the parties have to execute a deed of confirmation and attach the documents to the deed of confirmation. The deed of confirmation to which the documents is annexed can be registered with the sub-registrar.

(iii) Registration Fees

 Registration fee payable in the office of sub-registrar as under w.e.f. 1^st April, 2003 if the amount of the consideration

(a)        When the amount or, value                    Rs.100/-

            does not exceed Rs.10,000

(b)        When the amount or, value                    Rs.100 plus Rs.10/- for every rupees

            exceeds Rs. 10,000                              one thousand or part thereof in exces

                                                                        of Rs. 10,000/- subject to the

                                                                        maximum fee of Rs.30,000.

v     Both

Procedure for Registration, the parties have to approach the office of the sub- registrar with two witnesses and lodge the document for registration. The sub-registrar will accept the registration charges and issue a receipt. If any other requirements are to be complied with, the sub-registrar will note those objections on the receipt issued by him. The following are some of the requirements to be complied with before the documents are registered.

(a)    Proper stamp duty has to be paid. If the stamp duty paid is less the balance payable must be paid.

(b)   No objection certificate from the appropriate authority must be obtained under chapter XXC of Income Tax Act, if applicable (in Mumbai, the provision is applicable if the value of the property exceeds Rs.75 lakhs).

When all the requirements of registration are complied with, the sub-registrar will register the documents and return them to the party.