Special Story the Maharashtra Co-op.

Housing Society

CA Manilal Simaria

Stamp Duty & Registration

Provisions pertaining to Sale & Purchase of Flats
STAMP DUTY ON SOCIETY AND ITS MEMBERS
UNDER MAHARASHTRA STAMP ACT, 1958
Type of tax : Stamp Duty
Stamp Duty is one type of tax which has to be
paid to the State Government. It is payable on
instruments and not on transactions. The deinition
of the term instrument is very wide. There are 62
types of instruments which attract stamp duty
under the Maharashtra Stamp Act, 1958 (The Act).
In addition to it there are 9 types of instruments
that attract Stamp Duty under Indian Stamp
Act, 1899. The payment of proper Stamp Duty
on instruments bestows legality on them. Such
instruments get evidentiary value and are admitted
as evidence in Courts. The instruments which are
not properly stamped are not admitted in evidence
by the Court.

Valuation of Stamp Duty for flat and

Conveyance in Society
1.
The Government Authorities on every
31st December publish the Stamp Duty Ready
Reckoner for every next calendar year which
determines the market value of the property.
The valuation factors as contained in reckoner
has very wide impact on market value of property.
2.
The digitized copy of various zones are
also published in the Ready Reckoner so that the
general public are able to easily ind out the market
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value of the property. The market value of the

property is linked to CTS, City Survey Number and
the Village zone, and sub-zones where the property
is situated.
3.
The total area of Mumbai is divided in to 124
Zones and also further in to sub-zones. Basically
the Ready Reckoner consists of 7 columns. The irst
column mentions the zones and sub-zones. The second
column mentions description of property along with
CTS Number. The third column mentions the rate of
open land. The fourth column mentions the rate of
residential premises. The ifth column mentions the
rate of ofice premises. The sixth column mentions the
rate of shops and commercial premises. The seventh
column mentions the rate of industrial premises. There
are additions (premium) and reductions (concession)
as per valuation factor, for example in case
multi-storey building or tower addition is to be made
for lift.
4.
Now let us analyse how an individual
would know the market value of his property.
To begin with the person has to go through the
property card of that property. The property
card would mention the village as well as the
CTS number where the property is situated
from zone, sub-zone CTS no. and area, one can
know the stamp duty rate per sq. mtr. of that area.

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Stamp duty & Registration - Provisions pertaining to Sale & Purchase of Flat

Depreciation The rate of depreciation

for old structures

(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)

Valuation is to be done as per market

value less deducting above percentage as
depreciation according to the age of building
and types of building as per above chart.

(2)

Stamp Duty is payable on agreement

value or market value whichever is higher.
For old flat/building/property, market
value is arrived at after giving the effect of
depreciation and other valuation factors as
per particular year ready reckoner. Further
if value arrived at as above, even after
deducting depreciation value so arrived is
less than the developed land value, then the
valuation should be done as per land plus
construction cost method. Depreciation is
allowed on such construction cost.

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(4)

Occupation Certificate or Completion

Certificate are required while calculating
depreciation. However, if above two
documents are not available, then other
documents like Municipal Tax Bill, certiicate
issued by the Municipal Corporation, Light
Bill, Telephone Bill, Society letter, other
evidences for year of construction may help
to determine the value after depreciation.
Stamp duty should be always calculated
on built-up area. To convert carpet area
into built-up area multiply it by 1.2, i.e.,
Built-up area = Carpet Area X 1.2. concept
of super built-up area is done away
with. To convert Sq. Feet into Sq. Meter,
divide the sq. feet by 0.0929 and from
sq. meter to sq. feet, multiply sq. meter by
10.76.

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.

Rates, payment, penalty for stamp duty

on immovable property
a)
Rates of Stamp Duty
The rates of Stamp Duty are shown in 62 Articles
of Schedule-1, appended to the Mumbai Stamp
Act. Yes, the rates of Stamp Duty varies from
instrument to instrument. Similarly, the Stamp
Duty rates in respect of instruments covered under
the Indian Stamp Act are indicated in the Schedule
appended to the Indian Stamp Act, 1899. The

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Special Story the Maharashtra Co-op. Housing Society

stamp duty rate as conveyance of property, sale
deed of immovable property is @ 5% on higher
of market value or agreement value in Mumbai.
However, One should not forget to give impact

of various valuation factors as appear in reckoner

which contains Government Valuation factor for
that particular year.

InFoRMaTIon FoR STaMp DUTY anD REGISTRaTIon FEES paYaBlE on pRopERTY

DoCUMEnTS FoR MUMBaI anD oThER plaCES In MahaRaShTRa
Sr.
No.
I.

Types of documents

Stamp duty
payable

CONVEYANCE (not being a transfer-charged or

exempted under Article 59 w.e.f. 1-5-2012
On the true market value of the property
which the subject matter of the Conveyance is

Registration fees
payable
Registration fees is
1% of Market value
of ` 1,000/- or part
thereof ` 30,000/whichever is less.

(a) if relating to movable property, for every Fifteen rupees.

rupees 500 or part thereof;
(b) if relating to immovable property situated,
(1) within the limits of any Municipal 5 per cent of the
Corporation or any Cantonment area annexed market value of the
to it or any urban area not mentioned in sub- property.
clause (ii).
(2) within the limits of any Municipal Councils 4 per cent of the
or Nagar Panchayat or Cantonment area annexed market value of the
to it, or any rural area within the limits of the property.
Mumbai Metropolitan Region Development
Authority, or the Influence Areas as per the
annual statement of rates published under the
Bombay Stamp (Determination of True Market
Value of Property) Rules 1995.
(3) within the limits of any Grampanchayat area 3 per cent of the
or any such area not mentioned in sub-clause (ii). market value of the
property.
There is concession in stamp duty in exchange of lat in the society. In such case stamp duty is payable
on agreement or market value of such lat having Greater/Higher Value. Other agreement can be on
` 100 stamp paper. It is advisable to get both the agreements registered.
B)
payment of Stamp Duty
Stamp duty can be paid by purchasing the required stamp papers in the name of any one of executors to
the instrument. If stamp papers are not purchased in the name of any one executors, such instruments are
not admitted in evidence for any purpose. These instruments are also treated as not properly stamped.
These instruments are liable to be impounded and sent to the Collector of Stamps for recovery of proper
stamp duty. Stamp duty can also be paid by purchasing the stamp, affixing the adhesive stamps/
franking/e-payment on the documents. It can also be paid by way of challans in the Govt. treasury. With
effect from 1-5-1994, the stamp paper has to be purchased in the name of any one or either party to the

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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.

Market value of property

Market value in relation to any property which
is subject matter of instrument means the price
at which such property would have fetched if
sold in open market on the date of execution of
such instrument or the consideration stated in the
instrument whichever is higher. The Stamp Duty
is payable on the agreement value of the property
or the fair market value as per stamp duty ready
reckoner, whichever is higher.

Determination of Market Value

The Stamp Authorities have fixed values of
properties for calendar year 2013 with effect from
1st January, 2013 for different localities based on
the information accumulated by them. Stamp
Duty Ready Reckoner published every year on
1st January, prescribes the area wise rates and

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method of its valuation through Government

valuation factors for current year market rate of
property area wise for which please refer stamp
duty ready reckoner and valuation factor.

Appeal against the Market Value

The market value determined by the Sub-Registrar
or Superintendent of Stamps can be challenged by
the parties The parties can ask the Sub-Registrar
to refer their case to the Collector of the District
for determination of true market value and it is
binding on the Sub-Registrar to do so when asked
by the parties. Party has to pay deficient stamp
duty with penalty @ 2% pm. The Collector issues
notices to the parties, allows them to produce
evidence, grants them hearing, sometimes even
he visit the sites and then inally decides the true
market value of the property which is accordingly
informed to the parties. If the parties do not agree
with the true market value of the property as
determined by Collector of the District they can
go for appeal to the Deputy Inspector General
of Registration and Deputy Controller of Stamps
of the concerned region under Section 32B, of
Maharashtra Stamp Act.

Appeal against market value in the court

Any person aggrieved by any order determining
the market value under the sub-section (3) of
Section 31 or under Section 32-A or any other
authority imposing any penalty under Section
32-A may within sixty days from the date of
receipt of such order by making an application in
writing (accompanied by such fee not exceeding
rupees one hundred, as may be prescribed by
rules made by the State Government) require the
Oficer passing such order to draw up a statement
of the case wherein such order is passed and to
refer for decision the question of market value
of the property in respect of such order has been
passed the proper stamp duty leviable thereon and
imposing the penalty to following courts.
[a]
To the Bombay City Civil Court if such
property is situated in Greater Bombay and
[b]
To the Court of Civil Judge (Senior Division)
having ordinary jurisdiction, if it is situated
elsewhere.

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Special Story the Maharashtra Co-op. Housing Society

Stamp Duty compulsory on agreement

for sale and its adjustment at the time
or conveyance of society

Stamp Duty and Registration of

agreement for transfer of membership
in a Co-operative Housing Societies

Under various laws Registration of property is

compulsory. Registration done only when proper stamp
duty on such document is paid by such purchaser.
However, when subsequently, conveyance in favour
of society is executed in pursuance of such agreement
of sale, the stamp duty, if any, already paid on such
agreements by individual member on his agreement
will be set off in respect of area on which Stamp
Duty is paid towards the total stamp duty leviable on
conveyance deed executed subsequently in favour of
such society. Payment of proper stamp duty on such
agreements which are deemed as conveyances will
give the lat and such immovable property purchasers
advantage of paying the stamp duty on market value
at the time of entering in to an agreement of sale,
compared to the amount of stamp duty payable on
market value at the time of executing conveyance,
which normally takes place after the lapse of time, by
which time the market value would have considerably
appreciated leading to increase in the amount of stamp
duty payable. There may be cases when all members
of society has paid proper stamp duty on their old
agreement, on entire area and no FSI is left on plot
then on conveyance deed of the society stamp duty
will be only ` 100/-.

The transfer of flat under an agreement which is

not duly stamped and registered cannot be treated
as invalid in view of the judgments given by the
Maharashtra Co-op. Appellate Court in the case
of Pravinchand and Meghji Gala vs. Shankar Darshan
Co-op. Housing Society Ltd. wherein it was held
that, the society cannot have a concern regarding
stamp duty payable for transfer and that cannot
be a ground for giving consent to the transfer
by the society. It is to be noted that the society
is not concerned with a penalty or imposition of
additional stamp duty, if any, under the said law
as it would be borne by the transfer if so agreed
between the parties. Further in the case of Mrs.
Chandrika Mehta vs. Indus Co-operative Hsg. Soc.
Ltd., before the Deputy Registrar of Co-operative
Societies A Ward, Bombay the Registrar has
given ruling that non-payment of stamp duty
cannot be used as ground for refusing or refraining
the admission. The willingness to execute an
Indemnity Bond for the stamp duty as assured
by the appellant appears to be a positive gesture
and it is expected to meet a co-operative gesture
in reciprocation. Further the agreement cannot be
treated as invalid if not registered. On account of
the judgment pronounced by Justice Mrs. Sujata
Manohar in the case of Usha Arvind Dongre vs.
Suresh R. Kotwal 1990 report in M.L.J. Page 306
wherein it was held that, the title of the flats in
a Housing Society remains with the society and
the only right to occupancy of the property lows
from ownership to share and such share does not
become an immovable property and thus transfer
does not require registration. Thus in view of
the aforesaid judgment non-payment of stamp
duty and registration charges does not invalidate
the agreement. However on 18th February 1994,
the Office of the Commissioner of Co-operation
has issued a circular stating that the Managing
Committee of the Society should satisfy themselves
that the parties have paid the stamp duty. The
circular further goes on to add that the parties
should also compulsorily register the lat. Another
circular dated 8th July 1996 has also been issued by
the Commissioner of co-operation reconirming/

Disclosure of relevant facts and

circumstances
Section 28 of the Maharashtra Stamp Act casts the
duty on the executants to disclose and truly set forth
relevant facts and circumstances in the instruments.
This helps in inding out the types of transactions
involved in the instruments which in turn helps in
the determination of proper stamp duty payable on
such instruments. Duty is not payable on the title or
the heading given on the top of the instrument but
on the recitals as stated in the instruments.
The parties are penalised for not stating true facts
and circumstances in the instruments, since nondisclosure of relevant facts and circumstances lead
to evasion of stamp duty.

Impounding of instruments can be made

by collector of stamp's if not properly
stamped
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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.

Stamp Duty on legal heirs due to death

of member

Stamp Duty on transfer of residential

lats to tenants

There are humangous types of immovable property

documents on which stamp duty is properly
payable. These documents includes conveyance
deed, gift deed, Leave & Licence agreement, lease
deed, tenancy creation, release deed, surrender of
lease or tenancy, exchange of property, power of
attorney, development agreement, housing loan
agreement, TDR (as movable property etc.), more
particularly referred in article 1 to 62 schedule of
Bombay Stamp Act, 1958.

In the case of properties which are transferred subject

to tenancy the objections should be made to the
stamp authorities for allowing concessional stamp
duty so that the same may be considered. It is a
general view that properties, where there are genuine
tenancy under litigation normally fetch less than the
market value. The Stamp Authorities will value the
property at 112 months rent plus construction cost
or the agreement value whichever is higher. The
authorities also insist for electricity bill, rent receipts,
telephone bill, election card, ration card, passport
and 1995 voter list etc., to prove the bona ide tenancy.
Stamp Duty Department is constituted for collecting
the revenue to the treasury of Government. It is
a sort of taxing authority. Whereas, registration is
quite different. Registration charges are collected for
keeping the records of the documents. Hence both
are totally different. Stamp Act varies from State
to State. Indian Registration Act, 1908 is a Central
Act which is common for all the States of India.
Law of Limitation applicable to levy stamp duty
for the purchase of flat property in a Co-operative
Society. There is no Law of Limitation applicable
for Stamp Duty payment on purchase of flats in a
Co-operative Housing Society unless such sale deed
is registered with the Sub-Registrar of Assurances. If
the sale deed is registered with the Sub-Registrar of
Assurances then the Law of Limitation is ten years
from the date of registration of the sale deed.

112

In case of death of a member of a Co-operative

Housing Society and the lat is being transmitted
to the legal heir of the deceased member, Stamp
Duty has not to be paid when there is transmission
of shares. Therefore when the lat is transmitted in
the name of the legal heir the question of payment
of stamp duty does not arise. It is always better to
have will for property in addition to nomination
as the nominee is like caretaker or trustee of such
property. Stamp duty on Will or transfer of such
property by Will is not leviable.

Document of immovable property

covered for registration

Validity of stamp paper

Provision of section 52B, stamp paper remains valid
for a period of 6 months from the date of issue /
purchase.

Concessional rate of Stamp Duty on lat

gifted to family member
If the property is gifted to family member being
husband, wife, brother or sister of the donor, or
any lineal as ascendant or lineal descendant of the
donor, then stamp duty is @ 2% of market value of
such property.

Stamp Duty on slum rehabilitation

approval (SRA) scheme
In view of Government notification u/s. 9 of the
Act, the stamp duty payable such SRA document
is just token of ` 100 only.

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Special Story the Maharashtra Co-op. Housing Society

REGISTRATION OF DOCUMENT UNDER

INDIAN REGISTRATION ACT, 1908
I.

Registration is notice to public

Registration of various documents under Indian

Registration Act, 1908 (the Act) is notation of
facts and contents of documents in the records of
registration ofice.
The term registration is not deined under the Act.
Registration is the process by which the records of
such document is preserved and through observing
certain procedure which can be made available
to the general public by Registrar. Therefore
the registration is notice to the general public.
Registered document becomes public document,
such document can be inspected and certiied true
copy of the same can be obtained by anybody on
payment of necessary fees and by observing the
prescribed procedure. Certain registered document
prevails over unregistered document. For example,
registered non-testamentary document relating
to movable or immovable property shall prevail
over any oral agreement or declaration. However,
pursuant to any oral agreement or declaration, if
under such law delivery and possession of property
given is considered as valid transfer, then such
oral agreement or declaration will prevail over
subsequent registered document. For example
mortgage deposit of title deed will prevail over
subsequently registered mortgage deed.
Registration is function/process of recording the
contents of such document in Government record,
its preservation and also notice of such fact to the
general public.

II.

Some important documents

requiring compulsory registration
under section 17

For example, following documents are required

compulsory registration.
Gift, Sale, Exchange, Leases, Leave & Licence
tenancy Sale/Purchase conveyance of immovable
property, adoption of son, mutual fund as trust
including property in society must be registered.
There are other numerous documents required

SS-VI-97

registration. However, there are certain exception &

exemption provided in the above matter speciied in
section 17 for which one has to refer sections 17(1A)
and 17(2) of Indian Registration Act, 1908.

III. Documents of which registration is

optional as mentioned in section 18
of Bombay Stamp Act, 1958
IV.

(a) plaCE FoR REGISTERInG ThE

DoCUMEnTS
DEpEnDS
Upon
SITUaTIon oF SUCh SUBjECT
MaTTER oF pRopERTY (SECTIon 28)
The documents requiring compulsory registration
or optional registration shall be presented for
registration in the ofice of a Sub-Registrar within
whose Sub-district the whole or some portion of
the property to which such document related is
situated. It is advisable to put detail schedule of
property in agreement to determine the correct
value of property.
(B)

ThERE aRE CERTaIn SpECIFIED

pERSonS Who Can pRESEnT
DoCUMEnTS FoR REGISTRaTIon
For example. Beneiciary, Representative, Power of
Attorney holder, Assignee, (Section 32). Person with
bodily informality, in jail, etc. speciically exempted
person not required to attend register office for
registration however, on proper persuasion,
registrar can visit to such person place of availability
and registrar the same documents.

V.

Procedure on admission & denial of

execution (Sections 35 & 36)

a.

aDMISSIon oF EXECUTIon &

REGISTRaTIon
All the persons/parties executing the document
should appear personally to sign, put thumb
impression before the Registering Officer, or if
appearing by a representative, assignee or agent
legal heirs then such person should admit execution
by remaining present.

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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.

appEal To REGISTRaR aGaInST

ThE oRDER oF SUB-REGISTRaR
REFERRInG REGISTRaTIon on
GRoUnD oThER Than DEnIal oF
EXECUTIon U/S. 72
U/s. 72, an appeal within 30 days of such order can
be made against an order of Sub-Registrar refusing
to admit a document to registration (whether

114

the registration of such document is compulsory

or optional) to the Registrar to whom such SubRegistrar is subordinate.
F.

SUIT In CaSE oF oRDER oF REFUSal

BY REGISTRaR (U/S. 77)
Where the Registrar refuses to order the document
to be registered, any person claiming such
document as his representative, assignee or agent
may, within thirty days after the making of the
order of refusal, institute case in the Civil Court
within the local limits of whose original jurisdiction
is situate for the office in which the document
is sought to be registered. Registrar can refuge
registration if any one or more requirements for
registration not complied with.
G.

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.

VI. Necessity for Registration & effects

of non-registration
1.
Certain registered documents relating to land
and immovable property to take effect, and property
against unregistered documents. (u/s. 50).
2.
Non-registered document will put the title of
the owners over such property in jeopardy & lead
to litigations. Registered document has evidential
value in court of law. Registration preserves title
and interest of purchase in such property.
3.
Failure to register the document which is
required to register under other legislations or
law then in such case all consequences under that
law would apply. These are the consequences
to be faced by such person under that relevant
law. For example, trustees of Mutual Fund Trust

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Special Story the Maharashtra Co-op. Housing Society

should apply for registration, failure to which SEBI
Regulation will apply.
4.
The Registered document is the notice to
the public at large as regard to such and in respect
of particular property, which is subject matter of
registration. Registration is a process by which
contents of agreement and such fact is recorded
in the Government records maintained by the
Registrar.
5.
The payment of stamp duty and registration
of documents in respect of flat, gala, shop, office
etc. immovable property in co-operative society
is advisable. The two circulars issued by the
Commissioner of Co-operation and Registrar of Cooperative Society, gives direction for registration of
such property and transfer of shares.
1.

Circular dt. February 18, 1994.

2.

Circular dt. July 8, 1996.

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

(AIR) u/s 285 BA of Income-tax Act, 1961. The AIR

provides tool for checking of such transaction of
immovable property of ` 30 lakhd and above.
10.
As per the amendment dtd. 24-9-2001 in
Indian Registration Act, 1908 which speciied that
section 53A of Transfer of Property Act, document
executed even in part performance of the contract
requires compulsory registration.
11.
W.e.f. 1-6-2013, Union Budget proposes to
deduct 1% TDS on purchase of any immovable
property having agreement value above ` 50 lakhs.

VII. Procedure to register documents

when a person who has executed
the document who is due to illness
or hospitalisation is unable to visit
registrar ofice
In such circumstance on perusing the matter to
Registering authority, by collecting visit fees the
Sub-Registrar has to visit such place or hospital and
complete the registration formalities.
One has to comply with the procedure and
requirement for registration of immovable property
including lat, shops, commercial premises, etc. as
discussed hereinafter.

VIII. Procedure of registration in State of

Maharashtra
The process of registration highlighted below
mainly involves the following steps and
submissions of required documents/papers and
payment of registration fees to the Registrar Ofice:1.
The party has to irst pay the proper stamp
duty as per the stamp duty reckoner on blank
agreement or on next day of execution of agreement
or on same day of execution. The agreement should
be typed/printed on one side in black ink on 60
GSM paper. It is better to pay the proper stamp
duty on or before its execution.
2.
SMS has to be sent to the respective ofice by
stamp duty collector for payment of S.D.
To execute the agreement, Sub-Registrar require
to put photographs, signature and left hand
thumb impressions of all concerned parties to
execution.

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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

in documents are to be paid at ` 20/- per page for

scanning fees in cash at the time of registration of
document. Sometime Registrar calls information
from collection of the proper stamp duty is paid on
such adjudicated document.
9.
To complete illing up of input Registration
form in Marathi as prescribed by the stamp duty
department or Registrar or Sub-Registrar. The
input registration form and necessary documents
are required to be submitted at token window
in advance i.e., at least before half an hour of
registration. Generally, Registrar Ofice does check
such submissions. Adjudicated document will help
in faster registration.
10.
In respect of old building to avail the beneit
of depreciation on market value then the attachment
of following proofs will help to avail depreciation on
age of building.
(1) Municipal tax assessment bill (2) Completion
Certiicate (3) Occupation Certiicate (4) Telephone
bill (5) Electricity bill (6) Society letter (7) IOD/CC
etc.
11.
For proof of authorise structures, the
following documents are required:
1.

If the building is completed before March 25,

1991 the property assessment municipality
bill is required to be attached.

2.

If the building is constructed / completed on

or after March 25, 1991 in addition to above
proof out of following is to be attached :
i.

IOD/CC (Commencement Certiicate)

of building OR

ii.

Building Completion Certiicate OR

iii.

Building Occupation Certiicate (OC)

It is advisable that one has to pre-check such

requirements and entire procedure with respective
Sub-Registrar office, so there cannot be any
inconvenience at the time of registration.
12.
Any proof of determination of market value
will help to facilitate the calculation of true market
value. The detailed letter from society showing the

The Chamber's Journal April 2013

SS-VI-100

Special Story the Maharashtra Co-op. Housing Society

age of building, year of construction, built-up area
of flat, flat no. and floor on which flat is located,
details of lift facility available if any, number of
loors of building, types of construction C.T.S. No.
survey No, CS no. & Village/Division, etc. may help
to justify the calculation of proper market value of
such property. For proper valuation, please refer
government valuation factors of respective year.
13.
With effect from 1-5-2001, the deicit stamp
duty is payable with penalty @ 2% per month
or part of the month, but maximum penalty not
exceeding two times of such deficit amount is
required to be paid before registration and proof of
such payment of stamp duty and penalty is to be
attached at the time of registration of document.
14.
Computerised photographs of parties
executing the document and witness are also
generally taken digitally by the Registrars
office. The left thumb impression of all the
parties including witness to the document is also
taken digitally. Through computer generated
programming, the thumb impression and
photographs are automatically generated and
printed on separate paper which has photos of
both the parties and witness to be further signed
by all the executors before Joint Registrar/ SubRegistrar or Joint Sub-Registrar. Such witness
has to produce his identity proof. From 1-1-2002,
afixing photographs and thumb impression by web
camera inger prints scanner are made compulsory
for registration of document as regard to property.
Registrations of documents are computerised with
effect from 1-2-2002. Before inal registration, typed
papers/sheets describing name of the seller, buyer
and address of property, etc. is generally given to
party for inal checking just before registration, for
checking as regard to correctness of data comprised
thereon. In view of above, it is advisable to check
such data sheet by party as regard to correctness
of typed contents thereon. At last the Sub-Registrar
will sign & put page No., total page & number
block on each page of such agreement.
15.
Sometime, the documents are executed allow
to be registered by power of attorney holder for
and on behalf of buyer or seller or builder. In such

SS-VI-101

case copy of duly executed power of attorney is to

be attached with the agreement which is also to
be registered with photo, thumb impression and
sign. Generally all the parties are supposed to go
together for registration; however they can go at
different point of time but maximum time limit
within four months of execution of such document.
Registrar also asks to submit declaration (Ghosana
Patra) in prescribed format that power of attorney
its sum, substance and contents are in force, valid
and subsist on the day of registration. In case of
corporate assessee, trust, firm proper resolution
of Board/Managing Committee/Office bearer as
the case may be & such person photos, should be
authorised by proper resolution, seal and sign.
Pre-check the registration procedure at joint SubRegister ofice which now remain open from 7 am
to 9 pm in shifts.
16.
The complete documents along with all
above-mentioned details are then scanned by
Registrar office and preserved as a permanent
record at Registrars ofice. Receipt for Registration
fees & scanning charges is issued by Registrar which
should be preserved with agreement. The party has
to submit the copy of pay order / demand draft/
R.B.I. Challan for registration fees. The Registrar
generally by way of pay slip collects registration
fees, computer and other charges at ` 20 per page
of document are paid by cash towards scanning
for which he acknowledges by issuing receipt. The
pay order for should be in the name of respective
areas Joint Sub-Registrar or the Sub-Registrar
authorised by the department. Registrar also calls
original stamp duty paid receipts, challan, stamped
document, franking receipt stamp vendors bills
e-payment receipt.
17.
The original agreement after due registration
are returned to party by Registrar against sign
on delivery of document by register to party and
also on production of the original registration fees
paid receipt on which Registrar ofice put stamp as
delivered. Registration formalities are completed,
after which the documents are returned to party
within approximately one hour of completion
of registration formalities. If loan is taken then
authority letter to collect original documents is taken

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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.

IX. The time limit for registration of

the document
The document is required to be registered within
4 months time from the date of its execution. If the
same is not registered within 4 months time from
the date of execution, it can still be registered within
further period of 4 months from the expiry of irst 4
months, on payment of penalty for late presenting
the document for registration which can be imposed
by the Registrar up to 10 times of registration fees.
Now for delay registration of lat beyond 8 months,
IGR Pune has issued circular that such person
hereto pay stamp duty at prevailing current market
rate of stamp duty as per reckoner which is very
harsh. If the vendor dies after signing the document
but before registration of such document, in such
case it is difficult to complete the formality of
registration within 4 months of statutory time limit
or during the additional time limit of 4 months. In
cases of death of vendor the legal heirs of deceased
has to comply with the registration formalities.

118

X.

The date from which the

registration for leave and licence
and tenancy agreement made
compulsory

W.e.f. 31-3-2000, Registration of leave and

licence is made compulsory. Even the tenancy
agreement of the Maharashtra Rent Control
Act, has got to be compulsorily registered.
Such agreement also must be in writing. Delay
in registration may compel to pay stamp duty
at current market rate. Now registration fees is
payable at 1% of higher of market or agreement
value of property subject to maximum fees of
` 30,000/-

XI. If one of the signatories is not

willing to attend the office of the
Sub-Registrar for completing the
registration formalities
If one or more of the signatories is not willing
to complete the registration formalities then an
application has to be made to the Sub-Registrar
of Assurances under section 36 of the Indian
Registration Act, 1908. Thereafter the Sub-Registrar
of Assurances will issue summons and after giving
an opportunity to the person who has not remained
present can proceed with the registration formalities.
He shall make a noting in the document stating
registration refused with regards to the party who
has not remained present and can also deliver
the document to the party who has applied for
registration.

XII. Telephone No. of Stamp Duty and

registration help line in Mumbai
With effect from 1-4-2003 Mumbai has honour to
start Indias irst stamp duty and Registration help
line for Mumbai. The helpline telephone No. is:
2263 4567

XIII. Through e-search in IGR Maharashtra

website, one can avail the facility of e-search of
registered documents which are registered from
January 2002 onwards.

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