Professional Documents
Culture Documents
Housing Society
CA Manilal Simaria
107
Stamp duty & Registration - Provisions pertaining to Sale & Purchase of Flat
(3)
1.
The valuation is effected by the year of its
construction. To give relief to such old buildings,
the depreciation is to be allowed on market value
in percentage depending upon the age of building
as under:
age of
Rate of
Building
Depreciation
in years
for RCC pakka
More than
Structure/
.......... Up
other pakka
to
Structure
Rate of
Depreciation
for Semi
- pakka
or kachha
Structure
0-2
Nil
Nil
2-5
5%
5%
6-10
10%
15%
11-20
20%
25%
21-30
30%
40%
31-40
40%
55%
41-50
50%
70%
51-60
60%
80%
Above 60
years
70%
85%
2.
Notes on valuation while allowing
Depreciation :
(1)
(2)
108
(4)
Adjudication
If the parties have any doubt with regards to the
valuation of the property then before presenting
the current or old document for registration
or otherwise, they can apply to the Collector
of Stamps on payment of adjudication fees of
` 100/- to ind out the market value of the property
through the process of adjudication. It needs to
be emphasised that such adjudication can be
done on signed and an unsigned agreement also.
Prospective purchasers are advised that they should
submit the document to the Stamp authorities in
advance, preferably unsigned agreement so that
they can have a clear idea with regards to the
Stamp Duty liability. No adjudication is required
for the purpose of providing depreciation.
SS-VI-92
Types of documents
Stamp duty
payable
Registration fees
payable
Registration fees is
1% of Market value
of ` 1,000/- or part
thereof ` 30,000/whichever is less.
SS-VI-93
109
Stamp duty & Registration - Provisions pertaining to Sale & Purchase of Flat
agreement. Generally under section 30, of Stamp
Act, the buyer is liable for payment of stamp duty
unless it is speciically agreed otherwise.
C)
Penalty for insuficient Stamp Duty
Earlier upto 30-4-2001 the maximum penalty that
could be levied on instruments which was 10 times
of the amount of evaded or deicit paid stamp duty.
This had given wide ranging discretionary powers
to the authorities. Now with effect from 1-5-2001
penalty at a lat rate of 2% per month is levied by
the stamp authorities. The maximum penalty is
200% of the short fall of Stamp Duty amount.
D)
Refund of Stamp Duty
Refund can be claimed when the instruments gets
spoiled, rendered unit for the purpose for which
it was purchased and also for other reasons as
mentioned in Section 47 of the Maharashtra Stamp
Act. The application for refund must be submitted
within six months from the date of purchase of
stamps to the Joint District Registrar and Collector
of Stamps of the concerned district. However, in
some special cases like when the transaction is
impossible to complete due to some legal hitch, the
refund can be claimed within 2 years of purchase
of stamps. The refund is granted after proper
persuasion follow up and deduction of some
money.
110
SS-VI-94
111
Stamp duty & Registration - Provisions pertaining to Sale & Purchase of Flat
clarifying the contents of the circular dated 18th
February, 1994. The circular dated 8th July, 1996
expressly states that stamp duty and registration
fee must be paid by the parties. These circulars
are referred in Stamp Duty Notiication & Circular
Chapter in Stamp Duty Reckoner published by
Authors (10th revised edition 2013).
The paras in the above circulars pertaining to
registration appears to be in violation of the
provisions of Section 41 of the Maharashtra
Co-operative Societies Act. In case of Hanuman
Vitamis Foods P. Ltd. in writ petition 1820
dt. 17-12-1989 (AIR 1990 Bombay 204) it was held
that the transfer of shares in co. op. housing society
attracts charges with stamp duty under articles
25(d)(1) of the act.
112
SS-VI-96
II.
SS-VI-97
V.
a.
113
Stamp duty & Registration - Provisions pertaining to Sale & Purchase of Flat
B.
lanGUaGE oF DoCUMEnTS
U/s. 19, If any document is duly presented for
registration should not be in a language which the
registering oficer does not understand, and which
is not commonly used in the district, the registering
oficer shall refuse to register the document unless
it be accompanied by a true translation into a
language commonly used in the district and also
accompanied by a true copy of such document. In
Mumbai, document written in Marathi, English &
Hindi languages are normally accepted. If it is in
other language then with original document the
translated certified copy in Marathi, English or
Hindi is to be attached for registration.
C. DEnIal oF EXECUTIon & REGISTRaTIon
If any such person appears to the registering oficer
to be a minor, an idiot or a lunatic, or if any such
person by whom the document purports to be
executed or is dead and his representative or
assignee denies its execution, the registering oficer
shall refuse to register the document as to the
person so denying, appearing or dead:
If any person admitting the execution of a document
refuses to endorse the same, the registering oficer
shall nevertheless register it, but shall at the same
time endorse a note of such refusal.
D.
oRDER oF REFUSal
The Sub-Registrar refusing to register a document,
except on the ground that the property to which
it relates is not situated within his sub-district
shall, make an order of refusal and endorse the
word registration refused on the document and,
on application made by any person executing
or claiming under the document shall, without
payment and unnecessary delay give him a copy of
the reasons so recorded.
E.
114
a.
b.
c.
EFFECTS oF non-REGISTRaTIon
oF DoCUMEnTS REQUIRED To BE
REGISTERED (U/S. 49)
Any document requiring compulsory
registration u/s. 17 or by any provision of
the Transfer of Property Act, 1882, if not
registered, no document shall affect any
immovable property comprised therein, or
Confer any power to adopt, or
Be received as evidence of any transaction
affecting such property or conferring such
power, unless it has been registered.
SS-VI-98
2.
6.
As per amendment effected on
25-9-2001 under the Indian Registration Act, 1908.
Registration is made compulsory in respect of
certain immovable properties including transfer of
lat in registered co-operative housing society.
7.
In recent time, many properties purchased are
inanced by borrowing through various inanciers.
Housing loan is financed by banks, financial
institutions, etc. Sometimes, such inancier insists
to have earlier chain of documents duly registered
before disbursement of loan. For such types of
inances in respect of property, registration is precondition of finance before disbursement of loan.
Registration is normally done only after payment of
proper stamp duty as regards to those documents.
Registered documents serves as a proof of payment
of proper stamp duty.
8.
With effect from 1-4-2003, under section 50C
of Income-tax Act, 1961, the market value calculated
for the purpose of stamp duty is accepted by
Income Tax Department as base for valuation of
property for capital gain computation purpose.
9.
The Registrar or Sub-Registrar while
registering any agreement for purchase or sale of
an immovable property having reckoner value or
agreement value adopted is ` 30 lakhs and more,
are required to file annual information return
SS-VI-99
115
Stamp duty & Registration - Provisions pertaining to Sale & Purchase of Flat
3.
To visit www.igr.maha.gov.in for public data
entry and enter your data in isarita public data entry
module. Book your token (by phone or through
internet).
4.
Visit any Sub-Registrars office of that
Taluka (According to village) who will determine
registration fees payable and issue the Challan/
conirms to accept the pay slip. Conirm agreement
and its attachments with head clerk/person
incharge who will pre-check the documents and
satisied with requirement.
5.
Pay the registration fees by Challan/pay slip
of bank along with bank conirmation latter as per
procedure laid down by respective Sub-Registrar.
It is better to pre check at concerned Registrar
office the exact procedure and registration fees
payable. Registration fees are to be paid on value
of such property rounded off nearest to rupees in
thousands.
6.
In case of document of property having value
above ` 5,00,000/- Proof of Permanent Account
No. (PAN) of all the parties to the documents is
mandatory. If the party does not have PAN, then to
ile Form No. 60 along with documents to the SubRegistrar.
7.
Two witnesses with their photos and
identification proof should remain present for
identiication of parties to the agreement for which
two witnesses have to put their photo, signatures
and thumb impression before registering authority.
Such witnesses should not be necessarily same
who has signed as witnesses in the agreement.
The property card of land/plot on which the
property being registered is situated may be called
to produce in certain case. Property card is required
to be produced at the time of registration. CTS
No./survey No. as appears on the property card
provides help to determine true market value of
property. Stamp Duty are to be paid an property
value nearest to and rounded off to ` 500.
8.
For payment of registration fees by
government challan or pay-order or bank draft
of bank is to be produced. Computer charges/
scanning charges, etc. based on number of pages
116
2.
ii.
iii.
SS-VI-100
SS-VI-101
117
Stamp duty & Registration - Provisions pertaining to Sale & Purchase of Flat
by banks/inancial institution in such circumstances
parties are advised to take index II as well as
certiied true copies of document from registration
ofice.
18.
Particularly, for transfer of land, No Objection
Certiicate (NOC) under Urban Land Ceiling Act, (if
applicable) irrespective of its area in Mumbai.
19.
No Objection Certiicate (NOC) from Charity
Commissioner, Government or Semi-Government
body, if such land or property land is held by
trust/statutory authority as the case may be. Now
a days registration process is computerised and
simpliied.
20.
Now the builder or developer have to
put the approved plan and schedule of property
in the agreement and also to write the area i.e.,
measurement of flat/shops etc. in agreement.
Further the agreement cannot be executed by
the builder/developer before approval of plan
by competent authority. Builders have to put all
necessary details, carpet/ built-up area, etc. in
agreement.
118
X.
SS-VI-102