a) The stamp duty rate will be 5% of the agreement value or market value (computed as per the ready reckoner rate of the area), whichever is higher
b) Registration fees will be 1% on the market value or the agreement C72value but restricted to Rs. 30,000.
Registration fees and stamp duty are inevitable costs that need to be met by every individual purchasing a flat. A deed of sale of immoveable property for the value of over a prescribed amount must compulsorily be presented either for adjudication or for registration. On failure to present the documents, such a document is made to lose legal efficacy and is not enforceable in any court. The main object of registration at the registration office is to give authenticity to the registered document regarding its execution, the identity of parties, justness to title and right, due execution, and consideration where a document is impounded for want of correct stamp duty, or where the defect is pointed out.
The system of registration of documents was first introduced in the Indian subcontinent by the British. They used 'paper' including the rule of law, administration of justice, sanctity of contract, and engagement for delivery and peaceful enjoyment of property. The registration fee was also intended to be a source of revenue.
The Indian Registration Act, 1908, is modeled upon English law, but there were very stringent and rigid formalities and compliance with the Indian Registration Act, 1871, which was unsatisfactory. The Indian Registration Act, 1908, has added many innovative features relating to registration, removal of defilement, prevention of fraud and forgery, and the validity of and checking the prima facie proof of execution and title.
The Indian Registration Act, 1908, authorizes the State Government to fix registration fees that shall be levied on the registration of documents. The object and purpose of the registration fee or the stamp duty under the Indian Registration Act, 1908, are both identification facilities as well as taxing property since registration is prima facie proof of title.
The consent, approval, or payment of fees is recorded in the index maintained in the registration office. The stamps impounded for non-acceptance due to the lack of payment of regular fees or fraud do not prevent the latter for want of correct and regular payment of proper registration fees or vice versa.(more)
