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Preeti Wadhawan (CS & Legal Manager)     11 August 2009

Requirement for agreement to be on stamp paper

Dear Friends,

In business parlance, normally business agreements (security service agreement, housekeeping service) are executed on a Rs. 100 stamp paper. Is there is a legal requirement for executing agreements on 100 Rs. stamp paper. Is it somewhat specifically covered under Indian Stamp Act? I want to understand the correct legal requirement and also admissibiltiy of these documents in court of law.

Thanks in advance for your reply.

Regards,

Preeti



Learning

 5 Replies

sanjeev murthy desai (Advocate)     11 August 2009

Dear Preethi

Yes off course every agreement should be stamped under stamp act.  If you execute the said agreements in proper stamp paper that is considered as you paid the proper stamp duty on said agreement  under stamp act and you can also execute any agreement in white paper also but that agreements subsequently should be stamped from competent authority.  Every state have different stamp duty so please specify said agreements are where you executed?

If you paid the proper stamp duty under prescribed state stamp act that documents are admissiable in court of Law otherwise those documents are should be impounded.

sanjeev desai

1 Like

Adv. Prashant Mali [MSc(CS),LL (CyberLaw IPR Consumer software piracy hacking data theft EOW financial crimes trade mark copyright IPR)     11 August 2009

Instruments include every document by which any right or liability is or purports to be created, transferred, limited, extended, extinguished or recorded but does not include a bill of exchange, cheque, promissory note, bill of lading, letter of credit, policy of insurance, transfer of shares, debentures proxy and receipt (which is charged under Indian Stamp Act, 1899). Except transfer by will (or by original nomination in a co-operative society) all transfer documents including agreements to sell, conveyance deed, gift deed, mortgage deed, exchange deed, deed of partition, power of attorneys, leave and licence agreement, agreement of tenancy, lease deeds, power of attorney to sell for consideration etc. have to be properly stamped.  i.e either a stamp duty has to be paid via purchasing papers or Franking in banks

To hold these agreements true in a court of law this is extremly important 

1 Like

narendra (Bank Law officer)     17 August 2009

Stamp duty for agreement is different in different states. The agreement relating to "contract of service" of any orginisation where it is not a service conditions as per standing order may be drafted on stamp paper as an "agreement" It need not be registered with the registrar of assurances. However, in case the employee beng workman under the Industrial Disputes Act, then it requires to be examined whether any clauses are against public policy. 

1 Like

medappa (legal)     27 October 2009

What agreements need not go on stamp paper? i have come accross alot of Agreements not on stamp paper?

sugandh (student)     09 February 2010

can ne one let me knw...stamp duty for a leave and license agreement in d state of karnataka....??


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