Latest Stamp Duty Amnesty Scheme

By Vimal Punmiya, LLB, FCA
Stamp Duty Amnesty Scheme 2004
Stamp Duty Amnesty Scheme has been announced by the Stamp duty Authorities w.e.f. 26.1.2004. The salient features of the Scheme are explained in a question answer form below: -
1. What is the last date of operation of scheme?
Ans.31st July 2004
2.Which documents are covered in the scheme?
Ans. All
3.Who can apply under this scheme?
Ans. Only the person concerned with the document or his Power of attorney shall be entitled to make application under the scheme.
4. What documents have to be attached with the application?
Ans. (a) All relevant papers affecting chargeability of instrument.
(b) 2 self-addressed envelopes (9inchesX 4 inches) having postal ticket of Rs. 25.
(c) a copy of the duly executed power of attorney, in case when the applicant is the Attorney. (d) At least one of the following documents, to prove the date of application.
(i) an extract of the bank pass book of one of the concerned parties to the document, or (ii) bank certificate, or (iii) bank statement, or (iv) a certificate under section 230-A or section 269 UL of the Income Tax Act, 1961 (v) the balance sheet certified by Chartered Accountant accompanying with the Income Tax return.
5. What is the procedure to avail the scheme?
Ans. First category is those who have paid less duty. They are required to apply with details as per enclosure, (Part I) annexed. They are required to work out and say that stamp duty liability, as per market value, with the application. The second category is of those whose case is pending with the department or are in appeal. They are called old cases. They are required to apply with details in Enclosure I (PartII) annexed. The application shall be made after paying the full stamp duty as demanded by the department
6. What is the amount of penalty under the present scheme?
Ans. The difference in stamp duty chargeable and paid is called the deficit amount. The penalty leviable is as follows: -
Deficit amount Amount of deficit   
Less than 1000 amount of deficit
1000-1,00,000 @ 1%
The amount of deficit along with the amount of penalty shall be paid within 30 days from the date of receipt of notice.
If the applicant fails to pay the amount within 30 days of the receipt of notice, then it shall be presumed that he has no interest in the scheme and recovery and penalty proceeding under section 33 of the Bombay duty Act 1956 shall be initiated.
7. Can the parties who have submitted the original documents at stamp duty office take advantage of the scheme.
Ans. Yes.

Reduction of Stamp Duty
1. When reduction of stamp duty is applicable?
Ans. The reduction of stamp duty will be applicable from 1st July 2004, with prior Approval of Governor. (As provided under sec. 9 of the Bombay Stamp Act 1958). In the case of residential 5.00.000 8750 + @ 5% on balance. In the case of commercial 5,00,000 @ 5%.
2. Whom this reduction of stamp duty is applicable?
Ans. This benefit is applicable to all types of residential, commercial, Industrial Transaction: -
(i) Conveyance/Sale (ART 25)
(2) Lease (ART 36)
(3) Gift (ART 34)
(4) Certificate of sale (ART 16)
(5) Settlement (ART- 55-A (ii))
(6) Exchange of property (ART 32)
(7) Mortgage with possession (ART 44(a))
(8) Transfer of lease by way assignment (ART 60)
(9) Trust Deed (ART 61-A- (ii))
3. What will be the minimum stamp duty?
Ans. 100 Rs. Will be the minimum stamp duty payable under the Article even to the instruments which at presents attracts stamps less than 100 Rs., are: -
Administrative Board, Affidavit, Appraisement or Valuation, Apprentice Deed, Charter Party, Copy of Extract, Counterpart or Duplicate, Delivery order in respect of goods, Letter of license, Protest will or note and Protest by the master.
4. What are the instruments on which exemptions are granted?
Ans. Exemption from payment of stamp duty on instrument such as all types of Affidavits to be filled by Govt. offices court for obtaining certificates of Caste, Income, Domicile, Nationality etc.
5. Whether the license agreement is mandatory for the paying guests? If so what is the value of stamp duty?
Ans. Paying guest need not require having license agreement. Therefore question of payment of stamp duty does not arises.
6. What will be the penalty rate for deficient portion of stamp duty, for every month or part thereof from date of execution?
Ans. 2% of the deficient portion of the stamp duty for every month or part thereof from date of execution provided on the receipt of such notice if the person liable to pay deficit amount of stamp duty and the penalty (250 Rs. Fixed), pay within one month from the date of receipt of notice he shall not be liable to pay penalty @ 2% of the deficient portion.
7. What is the revised duty with effect from effect from 1st July 2004 for Lease & Leave?
Ans. For property in Mumbai and its Suburban District: -
(a) Average rent + Security deposit Rs. 2,50,000/- for 11 months- 750 for the term of 11 months.
(b) Average rent + Security deposit Rs. 2,50,001/- to Rs. 5,00,000/- for 11 months- 1500 for the term of 11 months.
(c) Average rent + Security deposit Rs. 5,00,000/- for 11 months- 3000 for the term of 11 months.
(d) For Thane, Navi-Mumbai, Nagpur etc to be read as Rs. 500/-, Rs. 1,000/- & Rs. 2,000/- for the term of 11 months respectively.
(e) Other areas of Maharashtra to be read as Rs. 300/-, Rs. 600/-, Rs. 1,000/- for 11 months respectively.