Apart from the Indian Stamp Act, many states have their own stamp duty legislation. Most of the state`s stamp tax laws also do not explicitly include electronic registrations in their scope, but some government laws relating to stamp taxes refer to electronic registrations. Like what. B Section 2 (l) of the Maharashtra Stamp Act, 1958 [3], which defines the instrument, refers specifically to electronic recordings. It states that in India stamp duty is levied under the Indian Stamp Act, 1899 [1] (“Stamp Act”) and various laws passed by different states in India to collect stamp duty. Any instrument under which duties are created or transferred must be stamped under the specific stamp duty legislation. The Stamps Act does not contain any specific provisions specifically relating to electronic registrations and/or stamp duty payable when they are carried out. Stamp duty is a tax due on the performance of certain instruments or documents under the Indian Stamp Act of 1899 (“IS Act”) or the corresponding national stamp law. In the absence of state stamp laws, ISIS law applies. With regard to stamp duty, the general principle is that the tax must be determined by reference to an instrument and not to a transaction.

[See final note 3] Therefore, in order to understand the stamp duty requirement for a given transaction, it is important to understand the instruments involved in the transaction and the purpose of the instrument. [See final note 4] Section 25 of the BS Act imposes stamp duty, which must be paid on a deed of transport relating to personal property and/or buildings. However, the BS Act expressly provides that when an agreement to sell a property results in the transfer of ownership of that property before or after the execution, the same applies as a right of transport and stamp duty. The BS act also provides an exception in the event that the “sale agreement” is considered transport. When the BTA itself transfers the property and real estate that make up the business, which results in the document being duly stamped as transport in accordance with Section 25 of the BS Act, the stamp duty paid on that agreement is appropriate for the total stamp duty levied on the deed of transport. In the context of proceedings, no act of non-compliance with stamp duty may be invoked as evidence, unless it is properly stamped. For more information on unstamped documents and insufficient consideration, click here. The BS Act follows a system similar to that of the IS Act, with Article 5 of its list imposing stamp duty on an instrument that is an “agreement or its records or memorandum of agreement”.

It should be noted that Article 5, point h), point (a) (iv) explicitly contains an agreement which: a) creates any obligation, right or interest; b) has a monetary value; (c) are not under any other provision of the BS Act. The stamp duty charged can range up to two rupees for every thousand rupees of the monetary value indicated in the agreement. A BTA agreement falls directly under Section 5, point h) (h) (h) a) of the BS Act. Despite the general nature of the description in section 5, point h) h), the BS Act maintained a residual regime covered by section 5, point h) B), which imposes INR Hundred stamp duty (100) with respect to agreements not provided elsewhere. Since Article 5 H) H) specifies the instrument, a VZTa exported to the State of Maharashtra should be duly stamped in accordance with Article 5, point h) (h) (a) (a) and not Article 5, point h) b). The e-Stamping system generates stamp certificates to replace traditional stamps. Stamp certificates are issued online or within 2 business days of receiving the stamp duty offline upon receipt of the stamp duty. According to a July 2020 report, the Tamil Nadu government should reduce stamp and registration fees for all leases over 12 months.