When is stamp duty as a conveyance to be paid on agreement of sale

 Undoubtedly, Explanation (1) to Article 25 of the Schedule I of the said Act provides that when an agreement to sale an immovable property is accompanied with the delivery of possession of the immovable property, which is the subject-matter of the agreement, would be deemed to be a conveyance of the property and, therefore, would require the payment of the stamp duty accordingly. In other words, even if an instrument is drawn with the nomenclature as agreement for sale but once it discloses delivery of possession of immovable property to the purchaser thereunder, the transaction would partake the nature of conveyance and would be deemed to be a deed of sale and, therefore, would warrant stamp duty payable on a deed of sale in relation to such property.

Bombay High Court

Sanman Trade Impex Pvt. Ltd. vs State Of Maharashtra And Ors. on 23 August, 2004

Equivalent citations: AIR 2005 Bom 94, 2005 (1) BomCR 181, 2005 (1) MhLj 1037

Author: Khandeparkar R.M.S., J.