Agreement Stamp Duty in Gujarat: Everything You Need to Know
If you`re planning to buy or sell property in Gujarat, you`ll need to familiarize yourself with the agreement stamp duty. Stamp duty is a tax levied on legal documents, such as property sale agreements, and is a crucial aspect of the property buying or selling process. It`s essential to understand the rules and regulations surrounding stamp duty in Gujarat to avoid any legal issues down the line.
What is Agreement Stamp Duty?
Agreement stamp duty is a legal tax imposed on legal or commercial agreements. In the context of property, it`s the tax levied on the agreement between the buyer and the seller. When a property sale agreement is created, it needs to be registered with the government, and the agreement stamp duty needs to be paid.
The amount of agreement stamp duty varies depending on the state and the price of the property. In Gujarat, the agreement stamp duty is calculated as a percentage of the property`s value, and the rate varies between 3% to 4% of the property`s value.
Who Pays the Agreement Stamp Duty?
The agreement stamp duty is typically paid by the buyer. However, in some cases, the seller may also contribute to the payment of the agreement stamp duty. It is important to check the agreement details to determine who should pay the agreement stamp duty.
How is Agreement Stamp Duty Paid?
Agreement stamp duty can be paid in two ways:
1. Online Payment: In Gujarat, the agreement stamp duty can be paid online through the e-stamp portal. To make an online payment, you need to generate a challan online and pay the required fee through net banking, debit/credit card, or UPI.
2. Through Stamp Vendor: You can also pay the agreement stamp duty by purchasing physical stamps from authorized stamp vendors. After purchasing the stamps, you need to affix them on the agreement document.
Documents Required for Payment of Agreement Stamp Duty
To pay the agreement stamp duty, you`ll need the following documents:
1. Property Sale Agreement: A copy of the property sale agreement, duly signed by the buyer and the seller.
2. Identity Proof: Identity proof of the buyer and the seller, such as PAN card, Aadhaar card, or passport.
3. Property Documents: Original property documents, such as the sale deed, previous sale deeds, and property tax receipts.
4. Power of Attorney: If the buyer or the seller is not physically present during the payment of the agreement stamp duty, a power of attorney should be submitted.
Conclusion
Agreement stamp duty is a crucial aspect of property buying or selling in Gujarat. It`s essential to follow the rules and regulations surrounding agreement stamp duty to avoid any legal issues. The process of paying the agreement stamp duty has been made easier by the government through the online portal, but it`s important to have all the required documents ready to ensure a smooth transaction.