Is Stamp paper required
S. Fernandes
(Querist) 11 May 2014
This query is : Resolved
I run a small manufacturing unit. I was made an offer in 2006 by the proprietor of a propritorship providing man power services that he can provide me 3 persons who are his employees to work on my premises, produce for me on my machines for a fixed monthly fee as quoted. The term is for 11 months. The offer was on plain paper. I verbally accepted and he sent his workmen. He has since made consective offers every eleven months, and that arrangement continues. He has increased his fee on every term, he is below the service tax slab hence not a registeted dealer. All payments are by cheques. Question now is: 1) Does such an 11 months arrangement require payment of duty, an therefore had to be executed on stamp paper before a notary? If yes what is the remidy, when so much time has lapsed? 2) What are the repercussions on me in respect of labour law? Kindly advise. Thankyou
Devajyoti Barman
(Expert) 11 May 2014
commercial query..please take help of a tax consultant.
Rajendra K Goyal
(Expert) 12 May 2014
The agreement should be on stamp paper. Better for future, get it drafted by your lawyer for you, quoting clear terms and conditions about various aspects.
You have to abide by the labor law provisions applicable on your part as per agreement.
T. Kalaiselvan, Advocate
(Expert) 13 May 2014
You may proceed as advised by expert Mr. Rajendra K Goyal and kindly consult a local tax consultant to take his guidance on further issues.
Dr J C Vashista
(Expert) 13 May 2014
Commercial query, contact local lawyer/tax consultant.
