stamp duty on trademark license agreement in mumbai

the Stamp Duty payable under Article 25(b) of Schedule 1 of the Bombay Stamp Act, 1958. It is a tax paid to the government, similar to the income tax. STAMPS TO BE USED- Non - Judicial Stamp Paper Rule 6 or Special Adhesive Stamp Paper under Rule 10(ii), MORTGAGE DEED, not being an agreement relating to Deposit of Title Deeds, Pawn or Pledge or Hypothecation (Article 6), Bottomry Bond (Article 14), Mortgage of a Crop (Article 41), Respondentia Bond (Article 53), or Security Bond or Mortgage Deed (Article 54)-. Our current leave and license agreement period is coming to an end in April start and inorder to sign a new agreement we all 3 need to be here but my sister is flying to another country for a few months in march so we decided on making a new agreement and signing and registering it with stamp duty in march . Stamp Duty to be paid to the state where registered office of the company is situated. While Buying a Non-Judicial Stamp Paper you need to provide the following details: Names of parties to the agreement (First party, second party, etc. In Mumbai, three per cent of prevailing ready reckoner rates has to be paid as stamp duty on gift deeds. 20 lakhs. 30,000 and for property worth less than that, 1% of the property value is levied as stamp duty. MSFPhover = Forsection 68of the principal Act, the following section shall be substituted, namely : 68. The upper limit is twenty thousand rupees (rule 20,000/-) and the lowest is rupee five hundred (rule 500/-). Stamp duty is levied on transactions involving residential property, commercial property and freehold or leasehold properties. Stamp Duty Consultant & Registration of all types of Documents; Registration of Firm, Property, Brand, Logo, Trademark; Leave & License Agreement (Online Registration) Notice of Intimation . Such impounded instruments must be sent to the Collector who would then determine the amount of duty and penalty, if any, payable on the same. Only authorised vendors can sell the stamps. 4.6 The date of issue of the stamp paper must not be more than 6 months older than the date of the transaction. Finance Department (FD), Government of Maharashtra, has decided to receive payments electronically. ], A. ), Addresses of the parties, Document name that is the LLP agreement and; Stamp Paper Value. 50/- shall be rounded of to the next Rs. The acceptance of on-line payment of Maharashtra State's Taxes through the internet portals of various banks have been developed, without having any implication on the existing procedure of the executive and accounting agencies of the Department. LETTER OF GUARANTEE,SeeAgreement (Article 5). (2) For the purposes of this Order, the first instrument of transaction means, the first document executed between the project Proponent/s and the Purchaser (hereinafter referred to as the original purchaser) in respect of residential unit located in the areas as approved under the Pradhan Mantri Awas Yojana- Housing For All (Urban) Project area (hereinafter referred to as the said area). See also Certificate or other Document (Article 17). on the market value shall be substituted; (ii) the words whichever is less shall be deleted. Vipra Chadha Vipra is a full-time content writer and a part-time Netflix addict. Stamp Duty is a statutory payment like Goods and Services Tax which needs to be paid on all instruments chargeable to duty. Stamp duty is payable as per the provisions of Section 3 of the Indian Stamp Act, 1899. 0.2%. 100/- any fraction of Rs. 68. This amount is paid, by purchasing the stamp paper of value you owe to the government. Conditions (1) Maharashtra Housing and Area Development Authority (MHADA) must certify that the Project is an approved project under the Pradhan Mantri Awas Yojana- Housing for All (Urban). Yes, when you buy a house in Mumbai that will take two years to get ready for possession, you will have to pay 2% as stamp duty and 1% as the registration charge on the purchase. In section 70 of the principal Act, sub-section (2) shall be deleted. (i) If the amount secured by such deed does not exceed Rs.5,00,000, 0.1% of the amount secured by such deed , subject to minimum of Rs.100, 0.3% of the amount secured by such deed , subject to maximum of twenty lakh rupees. according to the share capital of the company ,subject to minimum of Rs.1,000 and maximum of Rs.50,00,000. Explanation.-- For the purposes of this clause, the term 'debenture' includes debenture stock; (b) of any interest secured by bond, mortgage deed or policy of insurance; (c) of any property under section 22 of the Administrators' General Act, 1963; (d) of any trust property without consideration from one trustee to another trustee, or from a trustee to a beneficiary. Stamp duty is payable on license agreements and the rate of stamp duty payable varies in each State. Insection 40of 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. A Leave and License Agreement is an agreement wherein the licensor temporarily allows the licensee to use and occupy licensor's immovable property, either full or a portion of it, for the purpose of carrying out business activity or for residential use. Certain departments, organisations, institutions etc., to ensure payment of stamp duty-, (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.) (3) It shall be the duty of the proper officer so authorized under sub-section (2) to make an endorsement on the instruments after defacing the challan, as follows : Stamp duty of Rs. According to the Maharashtra Stamp Act, each document require stamp with proper stamp duty and with the proper mode. One such factor is the location or area of the property. 9.8 Simplication of procedure for filing Appeal before Addl. (ii) conferring exclusive rights of telecasting, broadcasting or exhibition of an event or a film, -, (iii) specific performance by any person or a group of persons where the value of contract exceeds rupees 1,00,000,-, (iv) creation of any obligation, right or interest and having monetary value, but not covered under any other article, -. Stamp Duty to be paid on the market value of the shares and debentures. (c) exceeds rupees 5,000 but does not exceed rupees 10,000; (d)exceeds rupees 10,000 but is less than rupees 10,00,000; and. if(MSFPhover) { MSFPnav1n=MSFPpreload("../_derived/back_cmp_Profile110_back.gif"); MSFPnav1h=MSFPpreload("../_derived/back_cmp_Profile110_back_a.gif"); } (v) assignment of copyright under Copyright Act, 1957, -, (vi) project under Built, Operate and Transfer (BOT) system, whether with or without toll or free collection rights,-. Explanation II-- Where in the case of an agreement to mortgage the amount or part thereof sought to be secured by such an agreement is advanced or disbursed to the mortgagor or without execution of a mortgage deed, then such an agreement to mortgage shall, notwithstanding anything contained in clause (d) of section 2, become chargeable under this Article as mortgage-deed on the date of making of such advance or disbursement either in part or in whole. Application for renewal with surcharge/ restoration and renewal of a Trademarks under section 25 (3), 25 (4) for each class. 9.11 Deficient portion of stamp duty : amount of maximum penalty increased. They cannot be in the name of the Chartered Accountant or Lawyer of the parties. For the purpose of this article, the market value, for the instruments falling under section 2 (n) (iii) (Toll Agreements) and article 5 (g-e) (Hire Purchase agreement), shall be the total contract value and they shall be chargeable to duty same as under clause (a) of article 25. 9.7 Deficient portion of stamp duty : amount of maximum penalty increased. --Where under clause (f), duty has been paid on the power of attorney, and a conveyance relating to that property is executed in pursuance of power of attorney between the executant of the power of attorney and the person in whose favour it is executed, the duty on conveyance shall be the duty calculated on the market value of the property reduced by duty paid on the power of attorney. ADOPTION DEED, that is to say, any instrument(other than a Will) recording an adoption or conferring or purporting to confer an authority to adopt. (b) when possession is not given or agreed to be given as aforesaid. Instrument of partition means any instrument whereby co-owners of any property divide or agree to divide such property in severally and includes: a final order for effecting a partition passed by any revenue authority or any civil court, an award by an arbitration directing a partition, and, when any partition is effected without executing any such instrument, any instrument or instruments signed by the co-owners and recording, whether by way of declaration of such partition or otherwise, the terms of such partition amongst the co-owners. Stamp duty refers to a tax on a transaction which is paid to the government and the tax is levied on the instrument recording the transaction. 5; (b) where the instrument relates to the partition of agricultural land, the rate of duty applicable shall be Rs. Stamp duty is a levy payable on instruments specified by statute on a fixed or on ad valorem basis. Provided further that, when proper stamp duty is paid under clause (g- a) of article 5 on an agreement, or records thereof or memorandum of an agreement executed between the same parties and in respect of the same property, the duty chargeable under this clause shall be Rs. Insection 48of 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.. Stamp duty on mortgage under article 40(b) of schedule I of the Act, when possession is not given or agreed to be given and if the amount secured is less than Rs.5 lakhs then the Stamp Duty shall be 0.1% of the amount secured subject to a minimum of Rs.100. Explanation I. Any consideration in the form of premium or money advanced or to be advanced or security deposit by whatever name called shall, for the purpose of market value be treated as consideration passed on, Explanation II. Instruments which are not covered under the above Act are either chargeable under Indian Stamp Act, 1899 (e.g. Trademark Agreement, 2. The instruments specified in the Schedule-I to the Act are covered by this Act. 9.16 Designated Revenue Officers empowered to call for all Registers and relevant Books of Transactions in respect of payment of stamp duty: Including diskette, magnetic cartridge tape, CD-ROM etc. 7% rent increase after 12 months. COMPOSTION DEED, that is to say, any instrument executed by a debtor whereby he conveys his property for the benefit of his creditors or whereby payment of a composition or dividend on their debts is secured to the creditors, or whereby provision is made for the continuance of the debtor's business under the supervision of inspectors or under letters of license for the benefit of his creditors. Depending upon the Instrument, it may be based upon the Market Value, Area, or other various criteria. Earlier, if the resale of such Immovable Property took place within one year of purchase, the stamp duty payable would only be on the difference of the property rates calculated in the purchase price and the resale price, and not on the entire consideration amount when the property is resold. Select the option based on your requirement, such as "Sales Deed" and "Agreement to sale". The Ready Reckoner is also available online on the IGR website. A Leave and Licence Agreement is also known as a Rent Agreement. As per Article 53 of Indian Stamp Act, 1899, RECEIPT for any money or other property the amount or value of which exceeds Rs. Registration fees, on the other hand, stand at a standard one per cent across states. 50. Transfer of Shares, Debentures, Bills of Exchange, Receipt, etc) or not chargeable at all (i.e., if they are not specified under the Act as well as under the Indian Stamp Act). Stamp duty in Mumbai depends on a lot of factors. Nothing is legal that adopts a method in effecting a transaction so as to reduce or lessen the liability of stamp duty. 50,00,000. The Explanation to the definition provides that any instrument by which one co-owner transfers his property to another co-owner would be deemed to be a conveyance provided that it is not an instrument of partition. The same duty as is 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. (a) for or relating to the purchase of sale of goods or merchandise exclusively, not being an agreement or memorandum of agreement chargeable under entry (d), entry (e), entry (f) or entry (g) of this Article or a note or memorandum chargeable under Article 43; AGREEMENT TO LEASE: See Lease (Article 36). Duties to be paid in cash, or by demand draft or by pay order by notary 16 10D. (ii) within the limits of any Municipal Council or Nagar Panchayat or Cantonment area annexed to it, or any rural area within the limits of the 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. If the amount secured is more than Rs.5 lakhs then the Stamp duty shall be 0.3% of the amount secured subject to a maximum of Rs.20 Lakhs. Exemptions Affidavit or declaration in writing when made --. The Reckoner divides the immovable property into various categories such as land, residential units, industrial units/office, shops, etc., and fixes their market value accordingly. Similarly, Stamp Duty under above Article in rest of Maharashtra State was reduced by Two percent (2%) for the period starting from 1st September, 2020 and ending on 31st December, 2020 and by One Half percent (1.5%) for the period starting from 1st January, 2021 and ending on 31st March, 2021. Section 35 of List 1 of the Bombay Stamp Act states that the stamp duty on the compensation loan was 500/- (five hundred rupees). Stamp Duty and Property Stamp Duty and shares, stocks and marketable securities Stamp Duty and leases Gifts and inheritances 1 Revenue stamp. Who bears and pays the stamp duty is a matter of agreement between the parties. In simple terms, we can call Stamp Duty as Price of Stamp paper. After obtaining the Incorporation Certificate, the LLP agreement, duly signed by the partners of the LLP, must be filed within 30 days. Under the license, the licensor retains ownership of the IP and the licensee has the right to use the IP only in accordance with the terms of the license. STAMPS TO BE USED -- Special Adhesive Stamp with word Notarial (section 11) Rule 19(d). 10 % of the aggregate of the market value of the shares issued or allotted in exchange or otherwise and the amount of consideration paid for such amalgamation: Provided that, the amount of duty, chargeable under this clause shall not exceed, -, (i) an amount equal to 5 % of the true market value of the immovable property located within the State of Maharashtra of the transferor company; or. (3) The Occupancy Certificate must be granted by the concerned Planning Authority. ; by which property, whether movable or immovable, or any estate or interest in any property is transferred to, or vested in, any other person. bodies or local authorities e.g. Stamp duty is payable on license agreements and the rate of stamp duty payable varies in each State. STAMPS TO BE USED -- Non - Judicial Stamp Paper Rule 6 or Impressed Label/Special Adhesive Stamp Paper under Rule 11. So, if someone is transferring his property to their children, spouse or siblings though a deed of gift, they have to pay three per cent of the deal value as stamp duty. In case an instrument is so drafted that it is covered within the ambit of more than one Article under Schedule I, then it shall be taxed by that Article which levies the highest amount of stamp duty. It may be noted that now adjudication is compulsory in all cases where an instrument is required to be adjudicated as per Ready Reckoner before registration as the Registrar of Sub-Assurances insists upon the same. 10.1 Deletion of requirement to round off duty amount. 0.1 % of the amount agreed in the contract subject to minimum of Rs.100. To avail of this facility the taxpayer is required to have a net-banking account with any of the banks listed by the government on the website. as they are worded or drafted. Some states offer reduced stamp duty charges for female homebuyers. (c) where such share contribution is brought in by way of property, excluding cash. If you register your vacation and license agreement with a lawyer in Mumbai, it could cost between INR 3,000 and INR 7,000, including legal fees. Control Act, 1999. 10,000 Plus renewal fee applicable under entry 3. 10,00,000; 0.25 % of the amount agreed in the contract subject to minimum of Rs.100. 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 every confirmation issued by the Central Government under section 233 (3) of the Companies Act, 2013, in respect of amalgamation, merger, demerger, arrangement or reconstruction of the companies ( including subsidiaries of parent company ); and every order made by the Reserve Bank of India under section 44A of the Banking Regulation Act, 1949 in respect of amalgamation or reconstruction of Banking Companies and every order made by the Board for Industrial and Financial Reconstruction under section 18 or 19 of the Sick Industrial Companies (Special Provisions) Act, 1985, in respect of sanction of Scheme specified therein or every order made by the National Company Law Tribunal under section 31 of the Insolvency and Bankruptcy Code, 2016, in respect of approval of resolution plan. 25-3-2013: As per amended Section 17 of Registration Act, 1908 registration of: Irrevocable Power of Attorney relating to transfer of immovable property in any way, executed on or after 1-4-2013. Check all needed legal documents, Payments, Charges, Property Registration, Rates & its Calculation procedure. ARTICLES OF ASSOCIATION OF A COMPANY Where the Company has no share capital or nominal share capital or increased share capital. A.Hi, Stamp duty and Registration Charges differ from one state to another. [Title] So we have rented a flat in Mumbai, the owners include me, my mom and my sister. You can pay stamp duty online via an electronic secured bank treasury receipt (eSBTR)-an online payment service. You can register as user on the portal and can avail services such as the registration for importer, goods, agent, transporter etc. Design transfer agreement and 3. Both the Parties of the agreement are also situated in Maharashtra. 5. Provided also that where proper stamp duty is paid on a registered agreement to sell an immovable property, treating it as a deemed conveyance and subsequently a conveyance deed is executed without any modification then such a conveyance shall be treated as other instrument under section 4 and the duty of Rs. A highly motivated and ambitious practising Advocate and Solicitor with an experience in commercial litigation and dispute resolution. ADMINISTRATION BOND including a bond given under section 6 of the government Savings Banks Act, 1873 or the Indian Succession Act, 1925. Enter the details and pay the duty through your Internet banking account. In Case Duty Exceeding Re. 9.1 Additional Controller of Stamps, Mumbai : New Statutory Authority, Insection 2of the Maharashtra Stamp Act (hereinafter referred to as the principal Act), before the existing clause (a), the following clause shall be inserted, namely :. 5 if(MSFPhover) { MSFPnav3n=MSFPpreload("../_derived/up_cmp_Profile110_up.gif"); MSFPnav3h=MSFPpreload("../_derived/up_cmp_Profile110_up_a.gif"); } Stamp Duty Maximun Stamp Duty Registration Fee ( % or fix duty) Minimum Registration Fee Maximun Registratio n Fee 48 Conveyance in compliance tothe Agreement sale (without possession) Compulsory 5 % 3%1 % 10 % of Principal Stamp Duty 1000 Rs - 49 Conveyance incorporating names of daughter in law Compulsory 1 % -10 % of Principal Stamp Duty 0.8 . Vide Notification No. For Land, Flat, Shop, Office and Industrial Unit etc. In absence of any State stamp legislation, the IS Act applies. Proof of Title: Circular w.e.f. The Stamp Duty is calculated as per Schedule-I of The Maharashtra Stamp Act. STAMPS TO BE USED -- Non-Judicial Stamp Paper Rule 6 or Special Adhesive Stamp Paper Rule 10 (ii). What is Stamp Duty? (i) where the trust is made for a religious or charitable purpose. Seal of the office. 100. There are a host of legal formalities involved. GIFT, Instrument of --not being a Settlement (Article 55) or Will or Transfer (Article 59). Any person can apply to the Collector of Stamps for adjudication of the stamp duty payable on the instrument. Registration Charges: Registration Charges in Tamil Nadu are 4 per cent of the guidance value, so will be Rs.2,00,000. They cannot be in the name of the Chartered Accountant or Lawyer of the parties. } 5,00,000; Explanation No duty shall be chargeable on agreements or its record covered under sub-clauses (b) and (c ) of this article, if proper duty is paid under Article 51 A, Agreement or its records or Memorandum of Agreement--. // -->