PENALTY ON DOCUMENT

A new amendment of Maharashtra Stamp Act, in related to stamp duty penalties has been introduced from 24th April, 2015.

An Instrument / Document (signed) in Maharashtra State become responsible for Stamp Duty (Tax Charges) from the date of execution (signing)

Where stamp duty is due on any share or immovable property transaction, such as Land, Residential, (Commercial) Office, Shop, and Industrial.

Deadlines for paying stamp duty

It is necessary for the involved parties to pay revenue enhancement (stamp duty) on associate instrument / document being executed in Maharashtra State before creating First Signature, or on the immediate next operating day.

An Instrument/document that isn't stamped or insufficiently stamped isn't void or unenforceable for that reason alone, and such document can also be rejected as proof if it's needed to be created before the Court, in this event, the party desires to provide the unstamped or insufficiently stamped document can have to be compelled to pay the revenue enhancement owed and penalty before such document will be received as proof. If the documents and payment are late, penalties and interest may be due.

If stamp tax isn't paid on time, it attracts penalty at the rate of four percent (4%) per month on the deficit quantity of the stamp tax, but most penalty is solely 400 percent (400%) of the deficit quantity of the stamp tax.

Example :
1. If deficit stamp duty is 100000 and was delayed for 1 month then penalty is 4000/-
2. If deficit stamp duty is 100000 and was delayed for 100 month or higher months then penalty is 400000/-


* There is a right of appeal against a stamp duty penalty.
The party might attractiveness to the Collector of Stamps for reduction of penalty and also the Collector of revenue enhancement might think about the purchaser’s attractiveness if he thinks match.