Need of Stamp Papers for an agreement
Manish Kumar Gupta
(Querist) 04 April 2009
This query is : Resolved
Dear All,
I want to know that what are the benifits of doing an agreement on stamp papers, rather than plain paper or Letter heads of the Company.
If agreement made on plain paper or letter Heads are admissible in evidence, and have the same value as agreement made on stamp papers.
Manish..
Kalpesh
(Expert) 04 April 2009
when you do agreemnet on stamp paper it meand you have paid duty onthe same and it could be regsitered. Agreementon plaine paper would not be enforcebel
sanjeev murthy desai
(Expert) 04 April 2009
There is no bar to doing an agreement in white papers (prescribed gaged papers). But some minimum stamp duty shall be paid through the stamp papers. The main reason is Govt authorities has more work to do so these small work load will reducing their work presure. If you executed in only paper you have to pay minimum stamp duty under the stamp act.( (Franking Should be done). Letter heads are acceptable but the both the parties have to agrred otherwise not possible and it should reflects the proper stamp duty was paid by the parties.
sanjeev desai
Omkar
(Expert) 04 April 2009
Stamp is better
Abhishek Sharma
(Expert) 04 April 2009
See Schedule I of Stamp Act, 1899. A stamp duty is payable on every document that is by itself an agreement. If such stamp duty is not paid, any Court or authority before which it is produced, shall be obliged to impound the said agreement and require the producing party to pay deficit stamp duty. Elaborate provisions on this subject are in Sec.25 & 34 of the Stamp Act. It has no further bearing on enforceability of the Agreement. However a document executed on proper stamp paper or letter head inspires confidence and lends credibility to the document. However this still requires to be proved in accordance with Sec 69 & 70 of Evidence Act.
A. A. JOSE
(Expert) 04 April 2009
I agree with Mr.Sharma.
V.Satya venkatarao
(Expert) 04 April 2009
Not all agreements are required to be stamped.Stamp duty is liable to be paid on such documents as specified under the respective stamp Acts of the states.For eg employement agreements are not to be stamped.
In case the requisite stamp duty is not paid, the same is laible to be impounded and penalties imposed.
MANISH
(Expert) 04 April 2009
If the two parties are sitting at the border, and there is war going on between two nations, then the agreement may be made between both the parties on a plain paper, and such an agreement is legally enforceable, although it is not done on stamp paper. If a person knows that he is dying within one hour, and he is residing at a place which is far from the place from where stamp paper could be have, at least 2 hours' time is required to reach that place, then the agreement made at plain paper is equally enforceable as that of stamp paper, as per the provisions of Evidence Act, and shall be equally weighed in a Court of law.
adv. rajeev ( rajoo )
(Expert) 04 April 2009
If the agreements are made on the stamp papers u will have to pay the requisite stamp papers. If agreements are made on white paper there is no bar but once dispute arises then it will have sent for Dist., REgistrar to pay the stamp duty and penalty. After completeing all the formalities then it can be admitted as evidence.
Y V Vishweshwar Rao
(Expert) 04 April 2009
I agree with my lrd friends and further add that;-
Every agreemtn is required to pay some stamp duty -unless specifically expeted by the local state Govt .
Admissibility of Agrement executed on plain paper depends on the nature of the Document and complience of the concerned State stamp duty
The benifits are ;-
1 That there will be no occation at later stage to pay stamps duty and penalties
2 The Date of agreemtn will be after purchae of the Stamp for Agreement
3 It will be compleince of the Stamp Act
Hiralal Das
(Expert) 04 April 2009
I agree with my Ld. Friends.
n.k.sarin
(Expert) 04 April 2009
I agree with Mr Rao.
Guest
(Expert) 05 April 2009
I agree with the Learned friends. But it is advisable to execute the agreements as per Stamp Act, and proper stamp duty is paid to avoid further complication in the court. Certain exceptions are there for government to waiver of stamp duty.
Sushil Kumar Bhatia
(Expert) 05 April 2009
an agreement on stamp is must as per rules of states if any agreement made on a plain paper is not admissible in evidence and if there is any deficiency in stamp duty for the instrument the same would be impoundable
rajaraman anusha
(Expert) 06 April 2009
I agree with Mr. sharma. If any rental agreement it should be paid Rs.20/- non judicial stamp papers and for 11 months.
The agreement made with plain paper,if any problem arises and file before court of law,the registry put some penalty for the plain paper agreement.
Shashikant V. Patil
(Expert) 06 April 2009
Unregistered agreement do not have any weigtage in the eyes of law.
V.V.RAMDAS
(Expert) 09 April 2009
All the agreements must be stamped as per Stamp act and after 2002 amendment all the agreements must be registered. Agreement can be written on staped paper or required amount of adhesive staps can be affixed on the agreement written on a plain paper. In Banking agreements the Adhessive stamps are generaly affixed.
Y V Vishweshwar Rao
(Expert) 17 April 2009
I agree with all the learned friends and payment of Stamp duty is must and to avoid any subsequent problems.
