How much stamp duty is to be paid for service agreements?

799 votes

Dear Querist,
The normal stamp duty to be paid is as per clause 5(c) of schedule 1-A of the Indian Stamp Act applicable to Delhi i.e. Rs. 50.
But since most service agreements have an indemnity clause, the same is to be read with entry 34 of the same act, i.e. Rs 100.
100+50=150
And just to be sure that something is not left out. Kindly get stamp papers for Rs 50 extra. So it comes of to a total of Rs 150+50=200

Advocate Shantanu Awasthi LawRato

98 votes

The amount of stamp duty to be paid for a service agreement can vary depending on the state in India where the agreement is executed. Stamp duty rates are set by individual state governments, and they differ from state to state. Here are some key points to consider:

1. State-Specific Rates: Each state in India has its own schedule of stamp duty rates for various types of agreements, including service agreements.
2. Stamp Duty Act: Stamp duty is governed by the Indian Stamp Act, 1899, and relevant state-specific amendments. It's essential to refer to the specific stamp duty regulations of the state where the service agreement is being executed.
3. Value of Agreement: Stamp duty is typically calculated based on the value of the service agreement. The value may be the consideration mentioned in the agreement or the actual value of the services being provided.
4. Stamp Paper: Service agreements are usually executed on non-judicial stamp paper, the value of which should meet the stamp duty requirements as per the state's regulations.
5. Stamp Duty Payment: Stamp duty can be paid by purchasing the required stamp paper from authorized vendors. The stamp paper should then be affixed to the service agreement and signed or sealed as per the state's requirements.
6. Registration: In some cases, service agreements may need to be registered with the relevant authorities. Registration requirements also vary by state.
7. Legal Assistance: It's advisable to consult with a legal expert or a local stamp duty consultant who is knowledgeable about the specific stamp duty rates and requirements in your state.
8. Penalties: Non-payment or underpayment of stamp duty can lead to penalties and legal consequences. It's essential to ensure compliance with stamp duty regulations.

To determine the exact amount of stamp duty for a service agreement, you should refer to the specific stamp duty rates in the state where the agreement is executed. Consulting with a legal professional familiar with local regulations is crucial to ensure compliance with stamp duty requirements.

Advocate Chikirsha Mohanty LawRato