Stamp duty applicability for contracts (service contract)
AMOL
(Querist) 02 January 2017
This query is : Resolved
Hello,
Wish you happy new year 2017.
I am experienced industry professional (engg. industry) and Law Student. I do refer to day to day services agreement taking place in Industry(for example hire of enggineering services or hire of Project Management Services for a consideration). I tried to find out applicability of stamp duty(in the form of stamp paper for agreement) in Indian Stamp Act and Maharashtra Stamp Act. I couldn't find instrument with such type of instrument.
Referring 'The Mahrashtra Stamp Act' (as modified upto the 9th July 2013), I found only relevant entry of such type instruments was that of 'Article 5. AGREEMENT OR ITS RECORDS OR MEMORANDUM OF AN AGREEMENT'. But this was also limited to (a) sale of bill of exchange (b)Government Security (c) Shares, scrips, debentures, bond etc (d) cotton (e) bullion (f) Oil Seeds (g) yarn, spices, non-mineral oil (h) advertisement, event .
Most relevant were Article 5 - h(A)(iii) &(iv). Herein (iii) specific performance by any person or a group of persons where the value of contract exceed rupees 1,00,000 and (iv) creation of any obligation, right or interest and having monetary value, but not covered under any other article. Article 5 - h(B) if not otherwise provided for,— One hundred rupees.] As I understand from this it seems like 5 - h(A)(iii) or (iv)could be applicable but they are so general that they can be made applicable to any contract as such as Contract itself is one which includes some consideration and creates obligations and rights. Whereas Article 5 - h(B) provides for Rs 100 Stamp duty for any general agreements which are not covered anywhere.
Can you please help me understand applicability of stamp duty for hire of services (non involving any transfer of property) from Indian Stamp Act (even though you are not from Maharashtra, for your region).
adv.bharat @ PUNE
(Expert) 02 January 2017
Registration act say that if the monetary value of any object is more than 100 rs/- then you need to pay stamp duty to government.
For more details revert back to me.
Rajendra K Goyal
(Expert) 02 January 2017
Stamp duty differ from state to state, discuss / consult local registrar office / local lawyer.
Ms.Usha Kapoor
(Expert) 03 January 2017
STAMP DUTY DIFFER FROM STATE TO STATE.
AMOL
(Querist) 03 January 2017
Friends, Thank you for responding. I do understand that the stamp duty differs from State to State. Also note that I am not referring to typical registration stamp duty on property transfer. I am referring to transaction wherein there is no transfer of property or belonging. Can you please sight some specific statute article.
Rajendra K Goyal
(Expert) 03 January 2017
It can be stamped like general agreement.
