Laws that govern the ownership and tenancy of property in Mumbai, India includes Stamp Duty.
Stamp Duty refers to charges in the form of taxes levied by Maharashtra State Government on enforceable documents. It is affixed on the face of the legal document.
It is generally payable before execution of the document. In exceptional cases, it may be paid on the next working day of executing such a document. Execution of the document means signing of the document by the parties to such document.
In the absence of any specific agreement, the purchaser/transferee has to pay stamp duty or in case of exchange of properties, both parties have to bear stamp duty equally.
Except transfer by will, all transfer documents including agreements to sell, conveyance deed, gift deed, mortgage deed, exchange deed, deed of partition, power of attorneys, leave and license agreement, agreement of tenancy and lease deeds have to be properly stamped before registration.
For any flat purchased in a co operative housing society on or after 10-12-1985, it is required to pay stamp duty on market value at the time of signing the agreement itself. However, prior to 10-12-1985, such transactions of agreement for sale required a stamp paper of Rs.5 only at the time of signing the agreement. However stamp duty on market value will have to pay on all such transactions at the time of conveyance of the property in favour of the society.
In Mumbai, the Stamp Duty is 5% on the consideration value.
From 01/05/1994 stamp paper are to be purchased in the name of one of the parties to the document. If the stamp paper is not in the name of the parties and if it is used for preparing the agreement, it will be as if no stamp paper was used.
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