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.
My query is based for a company based in Gurgaon and Haryana stamp act provides for stamp duty of eight annas for agreement or memorandum of agreement.
Those agreements and documents for which stamp duty is necessary as stated in the Stamp Act are bound to be executed in stamp paper. Rest of agreements or contracts or standard terms and conditions of business can be dealt even in white paper. Take for instance the standard forms of contract issued by insurance comapnies and few private companies. These standard form of contract are made only in white paper and signed by the parties, still the same is enforceable in courts in case of dispute.
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.