Chapter II STAMP DUTIES

In section 4 of the principal Act,— (a) in sub-section (1),- (i) after the word “sale,” the word “lease,” shall be inserted ; (ii) after the words “development agreement,” where it occurs for the second time, the word “lease,” shall be inserted ; (b) in the marginal note, after the word “sale,” the word “lease,” shall be inserted. In SCHEDULE I of the principal Act, in Article 1, in clause (1),— (i) in sub-clause (c), in column (1), the word “and” shall be deleted ; (ii) for sub-clause (d), the following sub-clauses shall be substituted, namely :– “(d) exceeds rupees 10,000 Fifty rupees. but is less than rupees 10,00,000; and (e) is rupees 10,00,000 and One Hundred rupees.”. In Schedule I appended to the principal Act, in article 25, in clause (da), in column (1), for the portion beginning with the brackets, letters and words “ (da) if relating to the order of High Court ” and ending with the words and figures "Banking Regulation Act, 1949’’, the following portion shall be substituted, namely :— “ (da) if relating to the order of the High Court under section 394 of the Companies Act, 1956 or the order of the National Company Law Tribunal under sections 230 to 234 of the Companies Act, 2013 or confirmation issued by the Central Government under sub-section (3) of section 233 of the Companies Act, 2013 in respect of the amalgamation, merger, demerger, arrangement or reconstruction of companies (including subsidiaries of parent company) or order of the Reserve Bank of India under section 44A of the Banking Regulation Act, 1949 in respect of amalgamation or reconstruction of Banking Companies.”. In section 39 of the principal Act, in sub- section (1), in clause (b),— (i) before the first proviso, the following shall be inserted, namely :– “Provided that, duty for which reduction or remission is granted by the Government under clause (a) of section 9 under any prevailing policy shall not be treated as deficient portion of duty for the purposes of calculation of penalty, if the beneficiary of such reduction or remission in duty surrenders or forgoes or has surrendered or forgone such benefit with prior approval or with no objection from the Government :”; (ii) in the first proviso, for the words “Provided that” the words “Provided further that” shall be substituted ; (iii) in the second proviso, for the words “Provided further that” the words “Provided also that” shall be substituted. In section 39 of the principal Act, in sub- section (1), in clause (b),— (i) before the first proviso, the following shall be inserted, namely :– “Provided that, duty for which reduction or remission is granted by the Government under clause (a) of section 9 under any prevailing policy shall not be treated as deficient portion of duty for the purposes of calculation of penalty, if the beneficiary of such reduction or remission in duty surrenders or forgoes or has surrendered or forgone such benefit with prior approval or with no objection from the Government :”; (ii) in the first proviso, for the words “Provided that” the words “Provided further that” shall be substituted ; (iii) in the second proviso, for the words “Provided further that” the words “Provided also that” shall be substituted.

In section 10 of the principal Act, after sub-section (3), the following sub-section shall be inserted, namely :— “(3A) The procedure to regulate the use of e-payment, through Government Receipt Accounting System (G.R.A.S.) (Virtual Treasury) for payment of duty shall be such as the Chief Controlling Revenue Authority may by an order determine.”. (1) Notwithstanding anything contained in any judgement, decree or order of any court to the contrary or in the principal Act, stamp duty assessed, levied and collected, including any action taken in pursuance of such assessment, levy and collection by the authorities under the said Act, acting or purporting to act under the provisions of article 25 in the Schedule I to the principal Act shall be deemed to have been validly levied and collected in accordance with law as if the provisions of the said article 25, as amended by the Maharashtra Stamp (Amendment and Validation) Act, 2017 (hereinafter in this section referred to as “the Amendment Act ”) had been continuously in force at all material time and accordingly,— (a) all actions, proceedings or things done or taken by the authorities under the principal Act in connection with the levy and collection of the stamp duty shall for all purposes, be deemed to have been done or taken in accordance with the provisions of the said Act ; (b) no suit or other proceedings shall be maintainable or continued in any court, against the said authorities for the refund of the stamp duty so levied and collected ; (c) no court or any other authority shall enforce any decree or order directing the refund of the stamp duty so levied or collected. (2) For the removal of doubt, it is hereby declared that nothing in sub-section (1) shall be construed as preventing a person,— (a) from questioning in accordance with the provisions of the principal Act as amended by the Amendment Act, any assessment, reassessment, levy or collection of stamp duty referred to in sub-section (1), or (b) from claiming refund of any stamp duty paid by him under the principal Act, in excess of the amount due from him by way of stamp duty under the principal Act, as amended by the Amendment Act. (1) Notwithstanding anything contained in any judgment, decree or order of any court to the contrary or in the principal Act, reduction or remission in the duties or penalty or both, granted under clause (a) of section 9 of the principal Act including any action taken in pursuance of such reduction or remission by the authorities under the said Act, acting or purporting to act under the provisions of the principal Act, shall be deemed to have been validly granted in accordance with law as if the provisions of clause (a) of section 9 of the principal Act as amended by the Maharashtra Stamp (Amendment and Validation) (Continuance) Act, 2019 (hereinafter in this section referred to as “the Amendment Act”) had been continuously in force at all material times and accordingly,– (a) all actions, proceedings or things done or taken by the authorities under the principal Act in connection with the reduction or remission of the duty or penalty or both shall for all purposes, be deemed to have been done or taken in accordance with the provisions of the principal Act ; (b) no suit or other proceedings shall be maintainable or continue in any court, against the said authorities for the remission or reduction granted in respect of the duties or penalty or both. (2) For the removal of doubt, it is hereby declared that nothing in sub- section (1) shall be construed as preventing a person,– (a) from questioning in accordance with the provisions of the principal Act, as amended by the Amendment Act, any assessment, re-assessment, levy or collection of stamp duty or penalty or both, referred to in sub-section (1) of this section ; or (b) from claiming refund to any stamp duty paid by him under the principal Act, in excess of the amount due from him by way of duties or penalty or both under the principal Act, as amended by the Amendment Act.

After section 10C of the principal Act, the following section shall be inserted, namely :— “10D. (1) Notwithstanding anything contained in this Act, the State Government may, by notification in the Official Gazette, direct that any State Government Department, institution of local self-Government, semi Government organization, banking or non-banking financial institution or the body owned, controlled or substantially financed by the State Government or any class of them, shall ensure that the proper duty is paid to the State Government through Government Receipt Accounting System (G.R.A.S.) in respect of such instruments, as may be specified in the notification passing through their system or related to their functioning of which registration is not compulsory. (2) The Chief Controlling Revenue Authority shall authorise a person nominated by such Department or body, etc. as mentioned in sub-section (1) as a proper officer for defacing the challan and making the endorsement on such instruments. (3) It shall be the duty of the proper officer so authorised under sub-section (2) to make an endorsement on the instruments after defacing the challan, as follows :— “Stamp duty of Rs. _______ paid in *cash/by demand draft/by pay order/e-Challan, vide Receipt/Challan No._______________/GRN No._______________ CIN_____________ dated the ___________. Seal of the office. Signature of the Officer. *Strike out whatever is not applicable.”. (1) The Maharashtra Stamp (Amendment and Validation) Ordinance, 2017, is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken (including any notification or order issued) under the corresponding provisions of the principal Act, as amended by the said Ordinance, shall be deemed to have been done, taken or, as the case may be, issued under the corresponding provisions of the principal Act, as amended by this Act. (1) The Maharashtra Stamp (Amendment and Validation) (Continuance) Ordinance, 2019, is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken (including any notification or order issued) under the corresponding provisions of the principal Act, as amended by the said Ordinance shall be deemed to have been done, taken or, as the case may be, issued under the corresponding provisions of the principal Act, as amended by this Act.

In section 30 of the principal Act,— (a) in clause (f), the word “and” shall be deleted ; (b) after clause (f), the following clause shall be inserted, namely :— “(f-a) in case of instruments of works contract as provided in Article 63 of SCHEDULE I, by the person receiving the contract;”. (b) in entry (B),- (i) in sub-entry (1), in column 2, for the words “Fifty rupees” the words and figures “Fifty rupees or an amount equal to 5 per cent. of the amount of consideration, whichever is higher” shall be substituted; (ii) in sub-entry (2), in column 2, for the words and figures “The same duty as is payable under Article 60” the words and figures “The same duty as is payable under Article 36 (iv)” shall be substituted; (B) in clause (h), in sub-clause (A),- (i) in entry (i),- (I) in sub-entry (a), in column 2, for the words and figures “Two rupees and fifty paise for every rupees 1,000 or part thereof on” the figures and words “0.25 per cent. of” shall be substituted; (II) in sub-entry (b), in column 2, for the words and figures “Five rupees for every rupees 1,000 or part thereof on” the figures and words “0.5 per cent. of” shall be substituted; (ii) in entry (ii),- (I) in sub-entry (a), in column 2, for the words and figures “Two rupees and fifty paise for every rupees 1,000 or part thereof on ” the figures and words “0.25 per cent. of” shall be substituted; (II) in sub-entry (b), in column 2, for the words and figures “Five rupees for every rupees 1,000 or part thereof on” the figures and words “0.5 per cent. of” shall be substituted; (iii) in entry (iii),- (I) in sub-entry (a), in column 2, for the words and figures “Two rupees and fifty paise for every rupees 1,000 or part thereof on” the figures and words “0.25 per cent. of” shall be substituted; (II) in sub-entry (b), in column 2, for the words and figures “Five rupees for every rupees 1,000 or part thereof on” the figures and words “0.5 per cent. of” shall be substituted; (iv) in entry (iv),- (i) in sub-entry (a), in column 2, for the words and figures “One rupee for every rupees 1,000 or part thereof on” the figures and words “0.1 per cent. of” shall be substituted; (ii) in sub-entry (b), in column 2, for the words and figures “Two rupees for every rupees 1,000 or part thereof on” the figures and words “0.2 per cent. of” shall be substituted; (v) in entry (v),- (I) in sub-entry (a), in column 2, for the words and figures “Two rupees and fifty paise for every rupees 1,000 or part thereof on” the figures and words “0.25 per cent. of” shall be substituted; (II) in sub-entry (b), in column 2, for the words and figures “Five rupees for every rupees 1,000 or part thereof on ” the figures and words “0.5 per cent. of” shall be substituted; (vi) in entry (vi),- (i) in sub-entry (a), in column 2, for the words and figures “One rupee for every rupees 1,000 or part thereof on” the figures and words “0.1 per cent. of” shall be substituted; (II) in sub-entry (b), in column 2, for the words and figures “Two rupees for every rupees 1,000 or part thereof on” the words and figures “0.2 per cent. of” shall be substituted; (5) in Article 6,- (A) in clause (1),- (i) in sub-clause (a), in column 2, for the words “One rupee for every one thousand or part thereof for” the figures and words “0.1 per cent. of” shall be substituted; (ii) in sub-clause (b), in column 2, for the words and figures “Two rupees for every 1000 or part thereof, for” the words and figures “0.2 per cent. of” shall be substituted; (B) in clause (2),- (i) in sub-clause (a), in column 2, for the words “One rupee for every one thousand or part thereof for” the figures and words “0.1 per cent. of” shall be substituted; (ii) in sub-clause (b), in column 2, for the words and figures “Two rupees for every 1000 or part thereof, for” the words and figures “0.2 per cent. of” shall be substituted; (iii) after Explanation I, the following Explanation shall be inserted, namely:- “Explanation II.- For the purposes of this Article, any new instrument executed for additional loan or extension of previous loan shall be treated as a fresh instrument and chargeable with the duty to the extent of additional amount being secured or disbursed or sanctioned.”; (6) in Article 7, - (i) in clause (a), in column 2, for the words “One hundred rupees” the words “One thousand rupees” shall be substituted; (ii) in clause (b), in column 2, for the words “Two hundred and fifty rupees” the words “One thousand rupees” shall be substituted; (7) in Article 8, in column 2, for the words, brackets and figures “Same duty as per Bond (Article 13) subject to maximum of one hundred rupees” the words “One hundred rupees” shall be substituted; (8) in Article 10, in column 2, for the words and figures “One thousand rupees for every rupees 5,00,000 or part thereof,” the figures and words “0.2 per cent. on share capital or increased share capital, as the case may be” shall be substituted; (9) for Article 12, the following Article shall be substituted, namely:- “12. AWARD, that is to say, any decision in writing Five hundred by an arbitrator or umpire, on a reference made rupees.”; otherwise than by an order of the Court in the course of a suit, being an award made as a result of a written agreement to submit present or future differences to Arbitration but not being an award directing partition. (10) in Article 13,— (a) in column 1, the words “for every rupees five hundred or part thereof” shall be deleted; (b) in column 2, for the words “Five rupees, subject to a minimum of rupees one hundred” the words “One per cent. of amount of Bond, subject to a minimum of rupees five hundred” shall be substituted; (11) in Article 14, in column 2, for the words and figures “Same duty as a Bond (Article 13) for the same amount” the figures and words “One per cent. of the amount of Bond, subject to a minimum of rupees five hundred” shall be substituted; (12) in Article 15, in column 2, for the words “One hundred rupees” the words “Five hundred rupees” shall be substituted; (13) in Article 17, in column 2, for the words “One rupee for every one thousand rupees or a part thereof,” the figures and words “0.1 per cent.” shall be substituted; (14) in Article 18, in column 2, for the words “One hundred rupees” the word “Five hundred rupees” shall be substituted; (15) in Article 24, in column 2, for the words “Two hundred rupees” the words “Five hundred rupees” shall be substituted; (16) in Article 25, for clause (a), the following clause shall be substituted, namely:- “(a) if relating to movable property 3 per cent. of the market value of the property.”; (17) for Article 28, the following Article shall be substituted, namely:- “28. CUSTOMS BOND OR EXCISE BOND, Five hundred that is to say, any bond given pursuant to the rupees.”; provisions of any law for the time being in force or to the directions of any officer of Custom or Excise for, or in respect of, any of the duties of Customs or Excise or for preventing frauds or evasions thereof or for any other matter or thing relating thereto. (18) in Article 34, in column 2, after the existing proviso, the following proviso shall be added, namely:- “Provided further that, if the residential and agricultural property is gifted to husband, wife, son, daughter, grandson, grand-daughter, wife of decesed son, the amount of duty chargeable shall be rupees two hundred.”; (19) in Article 35, in column 2, for the words “Two hundred rupees” the words “Five hundred rupees” shall be substituted; (20) in Article 39, - (i) in clause (a), in column 2, for the words “Two hundred rupees” the words “One thousand rupees” shall be substituted; (ii) in clause (b), in column 2, for the portion beginning with the words “The same duty” and ending with the words “share capital of the company” the figures and words “0.2 per cent. according to the share capital of the company, subject to minimum of rupees one thousand and maximum of rupees 50,00,000” shall be substituted; (21) in Article 40, - (i) in clause (b), in column 2, for the words “Five rupees for every one thousand or part thereof for” the figures and words “0.5 per cent. of” shall be substituted; (ii) in clause (c), in column 2, for the words and figures “The same duty as a Bond (Article 13) for the amount secured, subject to a maximum of rupees two hundred” the words “Five hundred rupees” shall be substituted; (22) in Article 45,- (i) in clause (a),- (A) in column 1, the words, letters and figures “for every Rs.1,000 or part thereof” shall be deleted; (B) in column 2, for the words “Ten rupees” the words “One per cent. of amount of payment under order” shall be substituted; (ii) for clause (b), the following clause shall be substituted, namely :— “(b) where payable at more than one year Two per cent. of amount after date or sight. of payment under order.”; (23) in article 46, in column 2, for the words “Rupees Ten for every rupees five hundred or part thereof” the words “Two per cent.” shall be substituted; (24) for Article 47, the following Article shall be substituted, namely:- “47. PARTNERSHIP— (1) Instrument of any partnership inclusive of, Limited Liability Partnership and Joint Venture to run a business, earn profits and to share profits, whether in cash or in kind- (a) where there is no share of contribution Five hundred rupees. in partnership, or where such share contribution brought in by way of cash does not exceeds 50,000. (b) where such share contribution brought One per cent. of the in by way of cash is in excess of rupees amount of share contri- 50,000. bution subject to maximum of rupees fifteen thousand. (c) where such share contribution is brought The same duty as is in by way of property, excluding cash. leviable on a Conveyance under clause (a), (b) or (c), as the case may be, of Article 25, on the market value of such property. (2) Dissolution of partnership or retirement of partner inclusive of, Limited Liability Partnership and Joint Venture to run a business, earn profits and to share profits, whether in cash or in kind- (a) where on dissolution of the partnership The same duty as is or on retirement of a partner any property leviable on a is taken as his share by a partner other than Conveyance under a partner who brought in that property as clause his share of contribution in the partnership. (a), (b) or (c), as the case may be, of Article 25, on the market value of such property, subject to a minimum of rupees one hundred. (b) in any other case Five hundred rupees.”;

In section 31 of the principal Act, in sub-section (4), in the proviso, for the word “double” the words “four times” shall be substituted.

In section 32A of the principal Act,— (i) in sub-section (1), after the words “by way of assignment” the following portion shall be inserted, namely :— “and also any other instruments mentioned in SCHEDULE I chargeable with duty on the basis of market value of the property”; (ii) in sub-section (2), in the third proviso, for the word “double” the words “four times” shall be substituted; (iii) in sub-section (4),— (a) the first and second provisos shall be deleted; (b) in the third proviso, for the word “double” the words “four times” shall be substituted.

In section 32B of the principal Act,— (i) in sub-section (1), after the words “file an appeal against such order, to the” the words “Additional Controller of Stamps, Mumbai in respect of the property, which is the subject matter of the instrument, is situated in Mumbai City and Mumbai Suburban Districts and in respect of the properties situated in the other parts to the” shall be inserted; (ii) in sub-section (2), after the words “against the order of the” the words “Additional Controller of Stamps, Mumbai or the” shall be inserted.

In section 34 of the principal Act, in the proviso, in clause (a), in sub-clause (ii), in the proviso, for the word “double” the words “four times” shall be substituted.

10C. Notwithstanding anything contained in section 10, in case of the notary appointed under the Notaries Act, 1952, for the whole or any part of the State of Maharashtra, the duty payable for performing the functions entrusted to him under any law for the time being in force, may be paid by him by way of cash, or by demand draft or by pay order, in any Government Treasury or Sub-Treasury or General Stamp Office, Mumbai and the notary shall make an endorsement on the instrument as follows, namely :, Stamp Duty of Rs. ........... paid* in cash/by demand draft/by pay order, vide * Receipt/Challan No. ........................, dated the ................, in * Government Treasury/Sub-Treasury Office at ......................../the General Stamp Office, Mumbai.

Seal of the notary. Signature of the notary with date.

*Strike out whatever is not applicable. ”.

(1) Notwithstanding anything contained in this Act, the State Government may, by notification in the Official Gazette, direct that any State Government Department, institution of local self-Government, semi Government organization, banking or non-banking financial institution or the body owned, controlled or substantially financed by the State Government or any class of them, shall ensure that the proper duty is paid to the State Government through Government Receipt Accounting System (G.R.A.S.) or by any other system of payment as may be notified by the State Government in this behalf, in respect of such instruments, as may be specified in the notification in which such Department or body, etc., is a party or which create a right in favour of such Department or body, etc., and of which registration is not compulsory: Provided that, in case of instruments requiring stamp duty of less than Rs. 500, the stamp duty may be paid to the State Government through any other mode of payment permissible under this Act and the provisions of sub-sections (2) and (3) shall not be applicable in case of such payment. (2) In computing the period of seven days, the day on which the amount of stamp duty is paid by the person and the day on which the challan is defaced electronically in the Government Receipt Accounting System (G.R.A.S.) or any other system of payment notified by the State Government in this behalf shall be excluded. (3) The registering officer shall, before registering the instrument, verify the genuineness of the challan as provided in sub-section (2). Provided that, whenever the Stamp Duty has been paid through Government Receipt Accounting System (G.R.A.S.) by receipt of e-payment i.e. electronically Secured Bank and Treasury Receipt (e-SBTR), the provisions of sub-sections (2) and (3) shall not be applicable.

Section 38 of the principal Act shall be deleted.

In section 39 of the principal Act, in sub-section (1), in sub-clause (b), in the first proviso, for the word “double” the words “four times” shall be substituted.

In section 40 of the principal Act, after the words “hereinafter prescribed” the words “with the prior approval of the Additional Controller of Stamps, Mumbai for the areas in Mumbai City and Mumbai Suburban Districts and for the other areas the Deputy Inspector General of Registration and Deputy Controller of Stamps” shall be added.

In section 48 of the principal Act, in sub-section (1), for the proviso, the following proviso shall be substituted, namely :— “ Provided that, where an agreement to sale of immovable property on which stamp duty is paid under Article 25 of the SCHEDULE I, is registered under the provisions of the Registration Act, 1908 and thereafter such agreement is cancelled by a registered cancellation deed for whatsoever reasons before taking the possession of the property which is the subject matter of such agreement, within a period of five years from the date of execution of the agreement to sale, then the application for relief may be made within a period of six months from the date of registration of cancellation deed.”.

Where due to material alterations made in an instrument by a party, with or without the consent of other parties, the character of the instrument is materially or substantially altered, then such instrument shall require a fresh stamp paper according to its altered character.