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STAMP DUTY AMNESTY SCHEME 2008 in a Nutshell by CA VIMAL PUNMIYA


SALIENT FEATURES OF THE AMNESTY SCHEME 2008

                                                                                

 

1.         All the documents on which proper stamp duty is not paid can be submitted in the prescribed foRm and get the documents regularized by paying only stamp duty amount as applicable on the date of agreement along with a token amount of Rs    500/- or Rs 1000/- as penalty and stamp duty.

 

2.         The scheme is operative from 9th June, 2008 to 8th September, 2008.

 

3.         To avail the benefit under the scheme any one of the following evidence can be submitted to the date of execution.

 

   i)       Bank statement/passbook of either parties ie. buyer or seller certified by the bank.

  ii)        Certificate from bank stating the payment details.

 iii)        Income tax return and balance sheet of the relevant period duly certified by          Chartered Accountant.

iv)        Certificate under section 230A of Income Tax Act, 1961.

 

4.         Only parties or their power of attorney holder can submit the document along       with     an affidavit giving the document.

 

5.         Original document along with a photocopy should be submitted along with the    prescribed application form and check list.

 

6.         If any one of the above listed documents are not available to prove the date of     execution of the document, you can still request the authorities to receive       documents with additional proof like share certificate, letter from the society, old       electricity bill, ration card etc.

7.         Even if the documents are not executed on the stamp paper but an evidence for             payment of consideration is given the documents can be regularized under the       Amnesty Scheme like society allotment letter, Transfer form etc.

8.         All documents including the agreements executed before 10.12.1985 can be       regularized under this scheme.

 

II.        WHY STAMP DUTY IS COMPULSORY?

 

             The stamp duty on all instruments is compulsory due to the following reasons :

 

1.         Payment of stamp duty is provided under the provisions of the Bombay Stamp     Act, 1958.

2.         When the possession of the property is taken stamp duty in due on all documents          including documents executed on or before 10th December, 1985.

3.         As per the IGR’s reply published in the times of India stamp duty is applicable on            all documents including documents executed before 10th December, 1985 as the     possession the property is obtained by the purchaser.

4.         As per circular dated 18th February, 1994 and 8th July, 1996 issued by        commissioner of Co-operative Societies Stamp duty and registration of       documents is compulsory at the time of formation of Co-operative housing     society or at the time of transfer of flat/shop/gala/shares.

 

 

 

5.         Conveyance in favour of the society will be admitted only on payment of stamp   duty by the Individual flat/shop owners of the society failing which stamp duty will have to be paid by the society.

 

6.         Under section 46 of the Bombay Stamp Act, 1958 if proper stamp duty is not paid            the same will be recovered as arrears of land revenue (by auctioning the property).

 

7.         As specified in High Court Judgement in case of Hanuman Vitamins Foods Pvt.             Ltd. V/s. The State of Maharastra transfer of shares in a society attracts stamp          duty.

 

8.         Documents on which stamp duty is not paid will not be admitted as evidence in   any court of law.

 

9.         Under section 32A of the Bombay Stamp Act, 1958 any government office may    impound the document on which proper stamp duty is not paid and compel the   purchaser to pay stamp duty along with penalty @ 2% per month.

 

10.       Societies may receive demand notice from the enforcement department in due    course for non payment of stamp duty by flat owners.

 

11.       Stamp duty is payable on instruments and the same cannot be escaped from hands      of law/Govt.

 

12.       The owner of the property will not be  able to avail any loan facility from any         bank or financial instrument on non payment of stamp duty and registration.

 

III.    BENEFITS OF AMNEST SCHEME 2008

 

1.      All old documents executed earlier can be regularissed.

 

2.         Penalty charges are very nominal ie. Rs 500/- or Rs. 1,000/- and save 200%.

 

3.         Documents can be registered without vendor.

 

4.         Documents will not be kept pending for valuation purposes.

 

5.         Stamp duty is payable at the old rate and old value.

 

6.         If any transfers are done with unstamped/deficit stamp duty the same can be        regularized.

 

            CONSEQUENCES AFTER AMNESTY SCHME 2008

 

1.         The Government may direct the sub-registrar to verify all earlier documents of the             vendor/seller for the proper stamp duty.

 

2.         This list of flat/shop owners who have not paid stamp duties is being called.

 

3.         The defaulters may get notices from the enforcement dept. of stamp office to        collect the deficit stamp duties with penalties @ 2% per month.

 

4.         Societies may be authorized to collect deficit stamp duty as arrears of land rvenue.

 

5.         The financial institutions will not grant the loan on such documents.

 

6.         At the time executing the conveyance it becomes society’s responsibility to pay   the stamp duty of the defaulting members along with the penalty @ 2% p.m.

 

7.         Government is palling the instroduce incentives schemes to in former of stamp    duty evaders.

 

IV.    DOCUMENTS REQUIRED FOR CONVEYANCE.  

 

*           Society Reg. Cert : with society

*           Stamp duty & Reg paid proof : Each individual

*           Agreement for Sale : Promoter to purchaser

*           Commencement cert : Municipal authority.

*           CC/D.C. : Conerned authority to Builder

*           Approved building plan : Municipal authority

*           7/12 Extract : Tahsildar/ Concerned auth

*           From No. 6 Mutation Entry : Revenue office

*           Search report/ Title clearance : Advocate

*           Index II : Sub Registrar of Assurances

*           Property card : Tahsildar

*           N A Order : Collector of Drstricts

*           Development agreements : Land owner to builder

*           Conveyance deed or sale deed : Builder to society

 

V.     DEEMED CONVEHYANCE PROCEDURE

 

*           Society to apply with relevant documents

*           Verification of documents will be done

*           Enquiries if any will be carried out

*           Promoter will be issued show case for issuance of unilateral instrument.

*           Entire procedure would be accomplished with 6 months.

 

VI.    DOCUMENT REQUIRED FOR PAYMENT OF STAMP DUTY UNDER THE AMNESTY SCHEME 2008

 

1.         Application

2.         Power of Attorney in favour of person handling

3.         Affidavit about details of property

4.         Original agreement of the property

5.         Photocopy of the original agreement of the property

6.         Copy of death certificate of the person whose name specified in the agreement in          case of his death.

 

7.         Any one of the following as a proof :

 

   i)       Electric Bill

  ii)       BMC Assessment bill

 iii)       Telephone bill

 iv)       Society share certificate

  v)       Copy of the bank passbook

 vi)       Bank certificate/statement

vii)       Copy of income tax return

viii)      Driving license

 ix)       Ration card

  x)       Passport etc.

 

 

8.         Photocopy of share certificate of the property.

 

9.         Society letter for area/construction year/lift and floors.

 

10.       The difference of stamp duty as per market value will be informed by the stamp    office and the same has to be paid within next working days from the date of          receipt of demand notice and if the payment is not made the benefits under the      scheme will not be available.

 

 

VII.   PROVISION OF THE BOMBAY STAMP ACT, 1958

 

            Stamp duty is applicable since 1958.

           

            Stamp duty is payable on all documents including documents executed before    10.12.1985. at the time of possession/conveyance.

 

            Stamp duty is payable on agreement value on documents executed on or before             3.7.1980 and thereafter on market value.

 

            Stamp duty rate on document executed on or before 9.12.1985 is as under :

 

            Agreement/market value

 

            Up to 50,000/-                                               10% of market value

            50,001 to 1,00,000/-                                     12% of market value

            1,00,001/- and above                                              15% of market value

 

 

            The market value is determined by the stamp office as per the guidance given in             the ready reckoner value published by the department every year, which was            started from 1990. (area wise market value can be obtained from our office from       1990 till date) For documents executed before 1.1.1990 market value is     determined taking the base value of 1990 as under :

 

          Pariod of Agreement                                     Market value

 

            Up to 3.7.1980                                              Agreement value

            From 4.7.1980 to 1984                                50% of 1990 market value

            1985                                                               60% of 1990 market value

            1986                                                               65% of 1990 market value

            1987                                                               70% of 1990 market value

            1988                                                               80% of 1990 market value

            1989                                                               90% of 1990 market value

            1990                                                               Onwards as per Ready Recknor