stamp duty on assignment of trademark in mumbai

What Is the Stamp Duty for Trademark Assignment?

The application process of obtaining a trademark and assignment of a trademark as an individual entrepreneur can be seen as daunting due to the number of documents one needs to take care of, and it's often tricky to find information about the proper procedure. However, with this blog article, you'll know everything about the stamp duty for trademark assignment.

 Stamp Duty for Trademark Assignment:   Trademark assignment is the process of handing over trademark rights to someone else in order to use the same trademark. Sometimes, this switch can help your firm increase or improve its perspective and market share.

Types of Trademark Assignment:

Partial assignment:.

Partial trademark assignment is when the trademark owner assigns part of the trademark to another business. It allows the business to receive legal protection until it becomes a complete trademark and ownership transfer happens. The retailer may use both pieces of information in advertisements to promote their company and verify that they are not breaking any laws.

Complete Assignment:

In a complete assignment, the assignee owns every right to sell, and earn royalties on the trademarks assigned to them.

With goodwill trademark assignment, the power of a registered trademark is assigned to someone else. The party that receives the assignment is named as the assignee on the trademark registration. Once a trademark is assigned with goodwill, it may be transferred or used by anyone. 

Without Goodwill:

Under these trademark assignments, only the trademark is transferred and not the brand value. And the assignor must use the trademark for any of their other businesses.

Applying Trademark Application

To apply for a trademark online in India, you need to create an account with the Trademark Registrar. After creating your account, you will need to identify your goods and services and provide relevant information such as the name of your company and the type of mark you are filing for. The Trademark Registrar offers a variety of documents to support your application, such as a drawing of your proposed mark, an affidavit of use or intent to use the mark in commerce, and proof of ownership of the mark. You will also be required to pay a filing fee and submit a verified original signature. Once your application is filed, it will be sent to an examiner who will decide whether to allow your mark into circulation. If your application is approved, you will receive a registration certificate that includes the symbol ® and identifying information.

Fees and Payments

To apply for a registered trademark online, you’ll need to pay the applicable filing fee and send in your application. Here’s a breakdown of what you’ll need to pay: 

• If you are not a start-up, small enterprise, or individual you will have to pay ₹ 9,000 for lodging an application electronically and ₹10,000 if you file in person with the Trademark Registrar.
• Individuals, small enterprises, or startups must file with the TM application by paying a fee of ₹ 4,500 for e-filing or ₹5,000 for filing by hand
• Based on the type of TM applied as per the stamp duty act, one needs to pay 5% stamp duty per TM application or assignment submitted

Forms of Identification

When applying for a registered trademark, it is important to have the appropriate forms of identification ready. There are a few different options available, and each has its own set of requirements:

• The first option is to submit a filing affidavit with your application. This document must be signed by the owner or owner’s representative and verified by an independent expert. The affidavit must include information such as the trademark’s logo, description, and date of first use. In addition, you must list the names and addresses of all owners or holders of rights to the mark.
• Another option is to submit an application containing only documents that establish trademark ownership. This document must include a copy of the registration of trademark certificate or a declaration from the entity claiming ownership that it is the true owner of the mark. The application must also include a statement from the applicant confirming that he or she is authorized to use the mark. Finally, you must provide contact information for any authorized representatives.

If neither of these options meets your needs, you can submit an application containing only extracts from previously filed documents. This document must include a statement confirming that you are copying copyrighted material without permission.

Benefits of Trademark Registration:

The benefits of trademark ownership can vary greatly depending on individual needs. Registering your mark, however, will help protect your financial and intellectual property rights. For beginning business owners that are not already familiar with trademark law, the process may seem a bit complicated and confusing to begin with.

If you are looking to apply for a registered trademark online and understand the fees involved, this article explains it all in detail. The process is relatively easy. Just go to the Trademark Registrar, fill out an application form, and pay the applicable fees. You will then need to send in citations of where your mark is currently being used, as well as additional documents if requested by the Trademark Registrar. Once the application is complete, you will be given details on when to send in your trademark registration certificate. 

Also, Read:

• How Are Trademarks Selected and Ownership ?
• Document Required for Assignment of Trademark
• How Do I Assign a Registered Trademark ?

When and How to Amend a Registered Trademark?

Overview Trademark registration is a lengthy process that takes around a year. One has to make sure that everything submitted…

What Is Revocation of Trademark

Introduction In India, the trademark law acts as a crucial shield for businesses, offering protection through formal registration. While this…

How to Register a Brand Name in India?

How much coffee and paper scrawl did it take you to finally settle on your brand name? Twelve, correct? If…

What is a Colour Trademark?

A brand’s colour is distinct from a colour trademark. Even if a TM or ® symbol appears on a brand’s…

Understanding G-Secs and How to Invest in Them for Business?

G-secs refer to government securities or, in other words, loans or capital issued by the government. The biggest advantage associated…

Startups to Continue Receiving a Tax Holiday

Businesses of all sizes and types have been having a tough year courtesy of the coronavirus pandemic. The Indian government…

How the Rupee Depreciation is Enticing NRIs in Real Estate?

The Indian currency has depreciated as much as 5.2% against the US dollar in 2022 so far. The rupee’s depreciation…

Subscribe to our newsletter blogs

Private Limited Company Registration Private Limited Company with Indian and Foreign Shareholders One Person Company Registration Limited Liability Partnership (LLP) Registration Partnership Firm Registration Subisdary Company Registration Subsidiary of an Indian Company in India Public Limited Company Registration Section 8 (Not-for-Profit) Company Registration Trust Registration Society Registration USA Company Incorporation Register a NBFC Company in India NIDHI Company Registration Producer Company Registration Digital Signature Certificate (DSC) Tax Deduction Account Number (TAN) Trademark Registration - India Trademark Renewal International Trademark Application Trademark Ownership Transfer Respond to a Trademark Objection File a Trademark Opposition Judgments Vakil GPT Libra Winding Up of Company roDTEP Private Company into OPC Patent Search Apply for a Provisional Patent Apply for a Patent Changes in IEC Changes in GST LUT Application ITR for LLP Business Ideas Business Loans NGO Registration Change the Objectives of Your Company Sole Proprietorship Scope of Work and Deliverables Agreement Service Level Agreement Business Compliance PIL Web Ecommerce Development Hallmark Registration Caveat Petition OSP License GDPR APEDA Registration Money Recovery Vendor Termination RBI Compounding Application Patent Infringement Labour Law Non Compete Agreement Relinquishment Deed Spice Board Registration Convert Private to Public Limited Company Posh Compliance Trademark Assignment Restitution Of Conjugal Rights Company Name Search Corporate tax e-FIR Property Documents Verification Trademark Infringement Well Known Trademarks Copyright Infringement Intellectual Property Employment Agreement Income tax Notice Financial Agreement Trademark Search NRI Legal Services Professional Tax for Employees Professional Tax for Directors ESI Registration PF Registration ESI Filing PF Filing Cancellation of GST Professional Tax Registration DIPP Certification Basic Food License State Food License Central Food License Fundraising PF and ESI Filings PF and ESI Registration Professional Tax Filing Shops and Establishment Act Registration Importer Exporter Code Registration SSI / MSME Registration Trade License Registration Copyright Registration Change in trademark application Trademark Withdrawal Payroll Services Goods & Service Tax (GST) Registration Trademark Watch ISO Registration Hearing Labour Welfare Fund Registration USA Company Compliances NGO Compliance Non-Disclosure Agreement Memorandum of Understanding (MoU) Get Advice from a Lawyer Get a Detailed Legal Opinion from an Expert Commercial Rental / Lease Agreement Leave and License Agreement Prepare a Power of Attorney Agreement Review Shareholders' Agreement Term Sheet Review a Term Sheet given by an Investor Share Purchase Agreement Terms of Service and Privacy Policy Terms of Service Privacy Policy Get Basic Legal Advice Get Basic Legal Opinion Get an Advanced Legal Opinion Get Expert Legal Opinion Legal Agreement Legal Notice Disclaimer Draft a Consumer Complaint Founders Agreement Franchise Agreement Vendor Agreement Master Service Agreement Joint Venture Agreement Freelancer Agreement Consultancy Agreement Profit Sharing Agreement Cheque Bounce Notice Freelancer / Contractor's Agreement Loan Agreement Terms of Service and Privacy Policy Website Terms of Service and Privacy Policy App Terms of Service and Privacy Policy - Web & App Probate of Will Divorce Consultation Property Registration Property Consultancy - opinion Management of a Trust Management of a Society Dissolution of Partnership Firm Accounting and Book Keeping GST Filings TDS Filings File Annual Returns for your Private Limited Company Get help from a Company Secretary for your Private Limited Company Get help from a Company Secretary for your Limited Liability Partnership Change your Company Name Change the Objectives of Your Company Appointment of a Director Removal/Resignation of a Director Change the Official Address of Private Company Close your Private Limited Company Convert your Partnership into a Private Limited company Convert your Sole Proprietorship into a Private Limited Company Convert your Private Limited Company into an LLP Convert your Private Limited Company into a Public Limited Company Income tax returns - Propreitorship Firm Financial Projections for Bank Loan Investor Pitch Deck CA/CS certification Increase in Authorized Capital of your Company Change the Objectives of Your LLP Change your LLP Name Adding a Designated Partner Change the Official Address of Your LLP Increase in Contribution to your LLP Change LLP Agreement Close your Limited Liability Partnership Convert your Sole Proprietorship into an LLP Compliance - Section 8 Close down your Not-for-Profit (Section 8) Company Get Share Certificates for your Company Replacement of a Director Change in the Designation of Director Adding a Partner in LLP Replacement of Designated Partner Resignation of Designated Partner Resignation of Partner Change Name of your LLP Close your Partnership firm Close your Proprietorship firm Close your Public Limited Company Convert your LLP into a Private Limited Company Convert your Partnership into an LLP Convert your Sole Proprietorship into a Partnership Audit your Company Valuation of Business Convert your Private Limited Company into an One Person Company Transfer of Shares Change in Authorized Capital of your Company Employee Stock Options (ESOP) Issue of New Shares (To existing promoters) RBI & SECRETARIAL COMPLIANCES FOR FOREIGN INVESTMENT ISSUE OF NEW SHARES IN YOUR COMPANY (TO OTHER THAN EXISTING PROMOTERS) Employment Agreement with ESOP Due Diligence of Company Convert your One Person Company into a Private Limited Company DIR-3 KYC Filing Issue of Convertible Debentures (CCD) Permanent Account Number (PAN) Religion change Gender Change Apply for Name Change - Minor Name Change Application FSSAI Marriage Certificate Mutual Divorce Court Marriage Public Notice - Gazette Notification Make a Will Residential Rental Agreement Gift Deed File your Income Tax Returns - Salaried Individual Logo design Free GST Registration Internal Start a Branch Office in India Get a Section 80 G Tax Exemption Trademark Search ISI Registration Apply for Birth Certificate Employment Contract without ESOP Sale Deed CA Advisory Service Apply for Succession Certificate Legal notice for recovery of dues Apply for legal heir certificate Apply for Psara License RERA complaints Main Service Startup India Registration Integrated Accounting + GST Talk to a CA Talk to a Lawyer Talk to a CS FCRA Registration FCRA Renewal Change in Member or Nominee of OPC Change in Particulars of Director Creation or Modification of Charge Satisfaction of Charge Conversion of Dormant Company to Active Company Conversion of Loan into Equity Shares Change the Official Address of Your Business (from one state to another state ) Get Support on Opening Current Bank Account Design registration Legal Metrology NGO Deed Drafting File an Opposition for Brand Infringement Darpan Registration Cessation of Partner or Designated Partner SEBI IA Registration Surrender of DIN/DPIN Foreign Liabilities and Assets (FLA) Return Change the Official Address of Your LLP (From One State to Another State) Change the Official Address of Your Company (Outside the City) CSR-1 Registration Service

Bengaluru - Bangalore Chennai Cochin Coimbatore Delhi Gurugram - Gurgaon Hyderabad Kolkata Mumbai Noida Thiruvananthapuram Vijayawada Visakhapatnam Addanki Adilabad Agartala Agra Ahmedabad Aizawl Ajmer Akola Alappuzha Aligarh Allahabad Alwar Amaravati Ambala Amritsar Anand Anantapur Andaman Aurangabad Aurangabad-Bihar Azamgarh Badaun Badlapur Bagaha Bagalkot Bahadurgarh Baltora Baraut Bardhaman Bareilly Bathinda Begusarai Belgaum Bellary Berhampur Bhadrak Bhadreswar Bhagalpur Bharuch Bhavnagar Bhayandar Bhilai Bhilwara Bhiwandi Bhiwani Bhopal Bhubaneswar Bidar Bijapur Bikaner Bilaspur Bina Etawa Birati Birbhum Bishalgarh Botlagudur Budaun Budgam Buldhana Bundi Cachar Calicut Chandauli Chandigarh Chandigarh-Punjab Chhapur Chhatarpur Chhindwara chidambaram Chitradurga Chittoor Chittorgarh Churu Cooch Behar Cuddalore Cuttack Dahod Daman Darbhanga Dehradun Deoghar Dera Bassi Dewas Dhaka Dhanbad Darbhanga Dharmapuri Dharmanagar Dharwad Dhule Dimapur Dindigul Dispur Dombivli Dumarkunda Dungri Durgapur Dwarka Eluru Erode Faridabad Firozabad Firozpur Gandhidham Gandhinagar Gangtok Ganjam Gannavaram Ghaziabad Gonda Gorakhpur Greater Noida Gulbarga Guntur Gunupur Guwahati Gwalior Haldwani Hansi Hanumangarh Haridwar Hisar Hoshiarpur Hosur Howrah Hubli Idukki Imphal Indore Itanagar Jabalpur Jagdalpur Jaipur Jalandhar Jalgaon Jalgaon Jamod Jamalpur Jammu Jamnagar Jamshedpur Jamui Jaunpur Jhansi Jind Jodhpur Jorhat Kadapa Kakinada Kalahandi Kalimpong Kalyan Kangra Kankroli Kannur Kanpur Kanyakumari Kapurthala Karad Karaikal Karaikudi Karimnagar Karjat Karnal Karur kasganj Kashipur Katihar Katni Kavaratti Khamgaon Khammam Kharagpur Khordha Kochi Kohima Kolhapur Kollam Koppal Kota Kottayam Kozhikode Krishnagiri Kullu Kumbakonam Kurnool Kurukshetra Lalitpur Latur Loharu Lucknow Ludhiana Madhubani Madikeri Madurai Mainpuri Malappuram Malda Mandi Mandsaur Mangalore Mapusa Margao Marthandam Mathura Meerut Midnapore Mirzapur Mohali Mone Moradabad Morbi Morena Muktsar Mundra Muzaffarnagar Muzaffarpur Mysore Nabarangpur Nadiad Nagapattinam Nagaur Nagercoil Nagpur Nainital Nalanda Namakkal Nanded Nandigama Nashik Navi Mumbai Navsari Nellore Nilgiris Nizamabad Ongole Ooty Other Cities Palakkad Palampur Palgadh Pali Panaji Panchkula Panipat Paradip Pathanamthitta Pathankot Patiala Patna Pilani Port Blair Pratapgarh Puducherry Pune Raichur Raigarh Raipur Rajahmundry Rajapalayam Rajkot Ramanathapuram Ramgarh Ranchi Raniganj Ratlam Rewa Rohtak Roorkee Rourkela Rupnagar Saharanpur Salem Sangli Sangrur Satara Secunderabad Shillong Shimla Shimoga shirdi Sikar Siliguri Silvassa Singrauli Sirmaur Sirmur Sitamarhi Sitapur Sivaganga Sivakasi Siwan Solan Solapur Sonipat sonla Sri Ganganagar Srinagar Surat Talbehat Tezpur Thalassery Thane Thanjavur Theni Thoothukudi Thrissur Tiruchirappalli Tirunelveli Tirupati Tirupur Tiruvannamalai Tumkur Udaipur Udupi Ujjain Una Uppala Uttarpara Vadodara Vapi Varanasi Vasai Vellore Vidisha Vill Damla Viluppuram Vinukonda Virar Virudhunagar Warangal Washim Yamuna Nagar Yelahanka Zirakpur Select City*

Email Enter valid email addres

You'll be redirected to payment page to reserve a callback from our expert

• Submit Post
• Union Budget 2024

Stamp Duty Rates as Per Bombay Stamp Act, 1958

Important definitions & stamp duty rates on various instruments as per bombay stamp act, 1958.

The Bombay Stamp Act applies to the entire State of Maharashtra. All the instruments specified in the Schedule to the Act are covered under this Act.

1. IMPORTANT DEFINITIONS

1.1 “Conveyance” has been defined to include:

1. a conveyance on sale,

2. every instrument,

3. every decree or final order of any Civil Court,

4. every order made by the High Court u/s. 394 of the Companies Act, 1956 in respect of amalgamation of companies;

The Explanation to the definition provides that any instrument by which one co-owner transfers his property to another co-owner would be deemed to be a conveyance provided that it is not an instrument of partition.

1.2 “Instrument of gift” has been defined to include, in case of an oral gift any instrument recording its making or acceptance, whether by way of declaration or otherwise.

1.3 “Instrument of partition” means any instrument whereby co-owners of any property divide or agree to divide such property and includes :

1. a final order for effecting a partition passed by any revenue authority or any civil court,

2. an award by an arbitration directing a partition, and

3. when any partition is effected without executing any such instrument, any instrument or instruments signed by the co-owners and recording, whether by way of declaration of such partition or otherwise, the terms of such partition amongst the co-owners.

The expression ‘co-owners’ includes all kinds of co-ownership such as joint tenancy, tenancy in common, coparcenary, membership of HUF, etc. and the partnership.

1.4 “Immovable Property” includes land, benefits to arise out of land and things attached to the earth or permanently fastened to anything attached to the earth. The two leading decisions on this definition are those of the Supreme Court in the case of Sirpur Paper Mills (1998) 1 SCC 400 and the case of Duncan’s Industries (2000) 1 SCC 633.

2.1 It can be paid by way of adhesive or impressed stamps on the instruments.

2.2 The stamp papers must be in the name of one of the parties to the transaction. They cannot be in the name of the Chartered Accountant or Lawyer of the parties.

2.3 The date of issue of the stamp paper must not be more than 6 months older than the date of the execution of the instrument.

2.4 Liability to pay Stamp Duty will be on the person who has agreed to pay the same. The Act also provides that in the case of a Conveyance, duty is to be paid by a buyer and by the lessee in case of a lease. In cases of Bonds, Release, Settlement, it is to be paid by the person making or drawing the instrument. In case of exchange, it is to be paid by the parties in equal shares and in case of partition, by the parties in proportion to their respective shares. In all other cases, it is to be paid by the person executing the instrument.

2.5 Stamp duty is payable at rates specified in Schedule I. Depending upon the Instrument, it may be based upon nature of instrument which is either  ad valorem .

The stamp office determines the market value of the property by referring to an Annual Statement of Rates (commonly known as Stamp Duty Ready Reckoner) which gives the market values of various immovable properties in Mumbai. The Reckoner divides the immovable property into various categories such as developed land, undeveloped land, residential units, industrial units/office, shops, etc., and fixes their market value accordingly.

2.6 Any person can apply to the Collector of Stamps for adjudication of the stamp duty payable on the instrument.

3. UNDER VALUED DOCUMENT

3.1 Under section 34 of the Act, any instrument which is inadequately/not stamped, then it shall be inadmissible in evidence for any purpose, e.g., in a Civil Court. Such instruments can be admissible in evidence on payment of the requisite amount of duty and a penalty @ 2% per month on the deficient amount of duty calculated from the date of execution. However, the maximum penalty cannot exceed twice the amount of deficiency in duty.

3.2 Further, any public officer can impound such improperly stamped instruments if it comes to his notice. Such impounded instruments must be sent to the Collector who would then determine the amount of duty and penalty, if any, payable on the same. Any party to an instrument can also  suo motu submit an instrument for adjudication by the Collector u/s. 31 on payment of Rs. 100.

3.3 A person can be punished with rigorous imprisonment for up to 6 months (not less than 1 month) and with fine up to Rs. 5,000/-, if it is proved that the instrument was undervalued or short payment of duty was made with intention to evade duty.

SCHEDULE 1 RATES ON VARIOUS INSTRUMENTS AS PER BOMBAY STAMP ACT, 1958

MAHARASHTRA

• An agreement for sale providing for transfer of possession shall be deemed to be a ‘Conveyance’ and will be stamped accordingly. However, a set off of the duty paid will be given at the time of execution of the conveyance.
• Assignment of copyrights is exempt from stamp duty.
• In case of amalgamation/reconstruction of companies, the market value of the shares of transferee company is the value of shares on stock exchange on the “appointed day” mentioned in the scheme or else the date of the court’s order. If the shares are not listed or not quoted, the market value means the value of shares to the transferor company or the value as determined by the Collector.
• i.           Average annual rent + security deposit or money to be advanced < Rs.2,50,000 for single term of 12 months
• ii.           Average annual rent + security deposit or money to be advanced >Rs.2,50,000 but < Rs.5,00,000 for single term of 12 months
• iii.           Average annual rent + security deposit or money advanced > Rs. 5,00,000 but < Rs. 20,00,000 for single term of 12 months
• iv.           Average annual rent + security deposit or money advanced > Rs.20,00,000 for single term of 12 months
• ii.           Average annual rent + Security deposit or money to be advanced >Rs.2,50,000 but < Rs.5,00,000 for single term of 12 months
• iii.           Average annual rent + security deposit or money advanced > Rs.5,00,000 for single term of 12 months (2) If relating to non-residential premises
• i.           Average annual rent + security deposit or money to be advanced <Rs. 2,50,000 for single term of 12 months
• ii.           Average annual rent + security deposit or moneyto be advanced >Rs. 2,50,000 but < Rs 5,00,000 for single term of 12 months
• iii.           Average annual rent + security deposit or money to be advanced > Rs 5,00,000 for single term of 12 months
• immovable property
• Indian stamp act 1899
• « Previous Article
• Next Article »

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

• Join Our whatsApp Channel
• Join Our Telegram Group

One Comment

I have to pay Maharastra stamp duty on Affidavit and Indemnity I have executed in the USA. I understand I can pay the duty within 3 months of execution as I am outside India.

I am not getting where I can pay, get the documents franked for delivery of the documents to the Companies.

Please help.

Leave a Comment

Your email address will not be published. Required fields are marked *

Post Comment

Notice: It seems you have Javascript disabled in your Browser. In order to submit a comment to this post, please write this code along with your comment: bc4c75a0fe636eb7ad16bae4e7a32859

Subscribe to Our Daily Newsletter

Latest posts.

HC Sets Aside GST Order, Grants Petitioner Document Presentation Opportunity

Reversal of Decision by Superior Court Not Ground for Review of judgment: Jharkhand HC

UPVAT: ITC cannot be granted merely on the basis of invoices & payment details

Proper Officer Fails to Seek specific Further Details: HC directs re-adjudicattion

Madras HC Grants Opportunity to Contest GST Demand with 10% pre-deposit condition

Delhi HC Restores GST Registration: Failure to Mention Reason

Madras HC Grants Petitioner Another Chance to Contest GST Demand

Madras HC orders STO to provide reasons for denying Input Tax Credit

Madras HC set-aside GST Order for lacking Specific ITC Denial Reasons

For Tax Filing – Analyze the Old and New Tax Regime

Featured posts.

Auto-populate HSN-wise summary from e-Invoices into Table 12 of GSTR-1

CBDT mandates electronic filing of 8 income tax forms starting April 1, 2024

Advisory on Reset and Re-filing of GSTR-3B of some taxpayers

CBDT Clarifies on Misleading Reports on HRA Claims

Financial Year end GST Checkpoints

Representation on Incorrect/Delay In Submitting Application U/S 12A(1)(ac)

Statutory and Tax Compliance Calendar for April 2024

TDS Deduction under Old vs New Tax Regime & Budget 2023 Impact

Functionalities to file commonly used ITRs enabled by CBDT on 1st April, 2024

• Private Limited Company
• Limited Liability Partnership
• Partnership Firm
• Proprietorship Firm
• Incorporation by Foreign National or NRI
• Other Business Structures
• Licenses & Government Registrations
• Change in Business
• Legal Documents & Contracts
• Funding Documents
• Growth Lessons
• Startup & Success Stories
• Shares and Securities

Working hard to build a business? Customers recognize your business by your brand name, logo, slogan and product name. TM registration protects your unique identity, and allows you to legally challenge any unauthorised use.

• Thousands of Entrepreneurs Trust LegalWiz.in
• Get TM Application Filed in 48 Business Hours, Guaranteed!
• Dedicated Account Manager Support
• Free TM Search Report and Class Selection

Trademark Registration in Mumbai– Process, Cost, and Documents Required

Introduction.

Mumbai is India’s financial capital, and with an ever-expanding economy, has long been a place filled with different businesses. Trademark registration in Mumbai is extremely necessary; since it helps you protect your brand’s name, logo, symbol, or a combination of all these. If you do not have a trademark, consumers cannot distinguish between your products or services and your competitors.

No business wants its goodwill to be taken advantage of, if your trademark is not registered, you may have to change your symbol or slogan in the future if somebody else registers a similar trademark; this can lead to losing a lot of your consumers and their goodwill! In this article, we will explain everything that you need to know about trademark registration in Mumbai.

What is a trademark?

A trademark, also popularly known as a brand name or logo, is a visual marker that is used by brands to separate or differentiate their products and services from those of others. A trademark can be a symbol, a word, a mix of alphabets and numbers, or a tagline combination of colours (in some situations even unique smells and sounds!).

What can be a trademark?

It is vital to know what can be trademarked . There are 3 important criteria that need to be fulfilled for a visual marker to be eligible for trademark or brand registration in Mumbai:

• the mark should be one that can be represented on paper (except when smells or sounds are trademarked).
• the mark should be unique enough to be able to differentiate one brand from another.
• the mark should be used with goods and services during trade.

Reasons why you should go for Trademark Registration in Mumbai

While it is not mandatory, every business is advised to register their trademark, to effectively protect their brand. In a city like Mumbai where there is a lot of competition, protecting your brand is a necessity for any business. Here are the various benefits of Trademark registration in Mumbai:

• Primarily, once you register your trademark, you are the only one who can use it. This means that you can stop anyone else from using the same trademark. Moreover, you can also stop people from using a trademark similar to yours.
• Secondly, as the exclusive user of the trademark, you can get into assignment contracts. Via an assignment contract, you grant someone else permission to use your trademark in return for money or royalty. Hence, a Trademark becomes an additional asset for your company
• Finally, all registered trademarks get access to easy legal redressal mechanisms. Courts in India generally protect the interests of registered trademark holders.

Documents Required for Trademark Registration

The following documents required for Trademark Registration in Mumbai:

• Proof of Applicant: Documents such as PAN, Address Proof of applicant, and Certificate of Registration/Incorporation in case of applicants other than individuals.
• Brand Name/ Logo/ Slogan: You have to provide the details of the Trademark that you are trying to register.
• Proof of TM Use: Documentary proof such as invoices, registration certificates, etc. with the brand name/Logo.
• MSME/Start-up India Certificate: This works as proof of business. Additionally, partnership firms and body corporates (other than an individual) can avail 50% rebate on Government fees if they provide their MSME OR Start-up India registration certificate.
• Power of Attorney: You have to file TM-48. It is a legal document that allows a Trademark attorney to file the Trademark on your behalf with the Trademark registry.
• Board Resolution: Additionally, for private limited or public limited companies, it is mandatory to provide a board resolution from all the directors that allowed the company to apply for a Trademark. Private limited and public companies can only apply for a Trademark after receiving the approval.
• User Affidavit: Moreover, for claiming specific user data, you have to submit a user affidavit. The Trademark you are registering decides whether you need this. Your Trademark Attorney will ask for it before application submission.

Process of Trademark Registration in Mumbai

The Trademark registration process is quite detailed and requires the help of legal experts. Legalwiz.in can help you finish the Trademark submission process within 4 days. Any individual or organisation can apply for trademark registration in Mumbai. This includes foreign nationals as well as non-profit organisations. For logo registration in Mumbai, follow these steps:

Preliminary steps:

• First, you have to pick the apt Trademark class for registration of your goods or services.
• Secondly, you need to check if anyone else has already registered a similar Trademark . To check, you have to use the IP India Trademark website.
• Thirdly, you have to fill out and submit a Trademark application either at the Trademark Registry or online on the IP India website. You can start using the TM symbol next to your Trademark after successful submission.

After Submission:

• The fourth step is for the Registrar to examine your Trademark and evaluate if it’s appropriate for Trademark Registration. They will either raise objections or approve the Trademark. In case of objections, you need a Trademark Attorney to file replies. You can also choose to not submit any reply and abandon the application.
• Once approved, the Trademark is published in Trademark Journal . Any person who feels that this Trademark is similar to their Trademark is required to file an opposition within 3 months from publication. If you receive opposition, once again you need a Trademark Attorney to file replies to it. The Trademark registry will evaluate your replies with the other party’s statements and decide if you can register your Trademark. You can also abandon the application at this point by not filing any replies.

Final Step :

• Finally, you will receive your registration certificate if there is no opposition or if the Trademark registry finds your replies to the opposition to be satisfactory. After this, you can use the ® symbol next to your Trademark.

Every Trademark is valid for 10 years, after that you have to renew them. You can renew a trademark any number of times.

Note: There is a massive difference between TM and R symbols. You can only use the R (®) symbol for a registered Trademark. However, you can use the TM (™) symbol for any unregistered trademark. The R symbol has a lot more benefits attached to it.

How to check Trademark Class

The first step for applying for any trademark application is picking the correct trademark class. You can simultaneously apply for TM registration in Mumbai under multiple classes. There are 45 trademark classes under which you can register a trademark. You are only granted protection within the class you apply to. For example, if you register a trademark under the class for fashion apparel, no other business can use or register a similar Trademark for fashion apparel or related items. However, someone in a completely different class, such as for pharmaceutical products, will be able to register and use a trademark similar to yours. Hence registering under the right class or classes is very important.

Use Our Trademark Class Search Tool:

How to check tm application status.

Following are the steps to check your Trademark status : 

• Go to IP India online website .
• Select Trade Mark Application/Registered Mark from the left-hand side menu.
• Select National/IRDI Number.
• After that, enter your Trademark Application Number, enter the captcha, and click on View Button.
• Now you should be able to see your Trademark Application Status. There will also be an alert showing the next steps.

Fees & Cost for Trademark Registration in Mumbai

TM Registration in Mumbai carries two types of costs:

• Government Fees: The government fees depend on the type of business structure of the entity applying for Trademark Registration. Government fees are INR 4,500 if the applicant is an individual or sole proprietor. For non-individual applicants, generally, the fee is INR 9,000 (Exceptions exist for businesses with MSME or Startup India registration).  
• Professional Fees: This varies from service provider to service provider.

Here are LegalWiz.in’s Packages for Logo registration in Mumbai:

Business Package from INR. 6,499

• Online TM Application under 1 class
• Suggestion for selection of class for Application

Executive Package from INR. 8,199

• Trademark Search Report
• Authorisation Letter (GPA)
• Stamp Duty on Authorisation Letter
• Final Application Filing using Registered Attorney
• Filing of Application for Individual or Start-Ups or MSME
• MSME Certificate

Premium Package from INR.10,999

You may also be interested in this article: Trademark Registration in Pune– Process, Cost, and Documents Required

In the dynamic business environment of Mumbai, safeguarding your brand through trademark registration is not just advisable; it is imperative. This article comprehensively outlines the process, costs, and required documents for effective brand registration in Mumbai, the financial capital of India. In a city known for intense competition and a burgeoning economy, registering your trademark becomes a strategic necessity. It ensures exclusive usage rights, transforms your trademark into a valuable asset, and provides efficient legal remedies. Open to individuals and organizations, both local and international, the eligibility criteria include graphical representation and commercial use for goods or services.

Frequently Asked Questions

Yes, you can Trademark your own name if you use it for commercial purposes. Especially if it is a unique name. If your name is a generic name, even after trademarking it, you will generally not be able to stop others from also using the name for their business.

No. They are two different types of Intellectual rights. You can copyright artistic works like drawings scripts, stories, movies etc. You can Trademark symbols, logos, brand names etc that are used by brands as a part of their brand identity. Copyright protections lasts for maximum 65 years. Trademark protection can last forever.

Yes. Every Trademark is valid for a period of 10, after which they expire if you don’t file for trademark renewal within 6 months.

Trademark Related Services

• Trademark Registration in Mumbai
• Trademark Objection Reply in Mumbai
• Trademark Opposition in Mumbai
• Trademark Assignment in Mumbai
• Copyright Registration in Mumbai

Trademark Related Articles

• Difference between TM (™) and R (®) symbol in trademark
• When and Why should you Trademark a Name?
• Kinds of Trade Mark Status in India
• All the Documents Required For Trademark Registration In India
• Trademark Registration in Delhi NCR

Other IP Registrations

• Power of Attorney in Mumbai
• Patent Search in Mumbai
• Provisional Patent Application in Mumbai
• Permanent Patent Application in Mumbai

Share This Post:

Monjima Ghosh

Monjima is a lawyer and a professional content writer at LegalWiz.in. She has a keen interest in Legal technology & Legal design, and believes that content makes the world go round.

Lovely just what I was looking for.Thanks to the author for taking his clock time on this one.

Good post. I learn something totally new and challenging on sites I stumbleupon everyday. It’s always exciting to read through content from other authors and practice something from other web sites.

Leave A Comment Cancel reply

Save my name, email, and website in this browser for the next time I comment.

POPULAR SERVICES

Terms and policies.

© 2024 LegalWiz.in - LegalWiz.in is the leading provider of personalized online legal solutions & legal documents in India.

• Phone : to connect with us call at: +91-11-40123000
• Email : [email protected]
• Our facebook
• Our Twitter
• Our linkedin
• Our whatsapp
• Map Location
• Domain Names
• Geographical Indication
• Trademark Search India
• Trademark Application
• Trademark Filing
• Trademark objection reply India
• Online Trademark Filing
• Trademark Process
• Trademark Flowchart
• Trademark Opposition
• Trademark Opposition Flowchart
• IRDI Provisional Refusal of Trademark in India

Trademark Assignment Agreement India – Assignment of Trademark in India

• Trademark Brand Registration India – Apply Online Trademark Registration
• TRADEMARK WATCH AND MONITOR
• Trademark Renewal
• Trademark Classes and Classification
• Trademark infringement – Trademark Misuse in India
• Trademarks INN Search
• Trademark Restoration
• Trademark Removal
• Trademark Rectification
• Trademark Filing Cost, Fees & Forms
• Trademark Status
• Indian Trademarks Act
• Marks not Registerable
• Well Known Trademarks
• Trademark Protection
• MADRID PROTOCOL INDIA
• TRADEMARK LICENSING
• Trademark FAQ

Gift Deed Executed by Senior Citizens can be Declared Null and Void only if it Contains Stipulation on Maintenance by Transferee

April 10, 2024

Process of Assignment of Trademark

The process of assignment of the trademark in India are as follows:

• The proprietor of the trademark (assignor) assigns his/her rights in the trademark through a trademark assignment agreement to the assignee.
• The assignor or assignee, or both, can make a joint request to register the assignment by filing an application of a trademark assignment in Form TM-P to the register of trademarks.
• Form TM-P must be filed with the registrar of the trademark within six months from the date of the assignment. The application can be filed after six months of assignment, but the fee may vary accordingly.
• The assignment must be advertised in such a manner and within the period directed by the registrar of trademarks.
• The copy of the advertisement and the registrar’s direction should be submitted to the office of the registrar of trademarks.
• Upon the receipt of the trademark assignment application (form TM-P) and required documents, the registrar of trademarks will register the assignee as the proprietor of the trademark and record the specifications of the assignment in the register.

Documents Required for Assignment of Trademark

The following documents must be submitted to the registrar of trademark along with form TM-P:

• Trademark assignment agreement.
• Trademark certificate.
• NOC from the assignor.
• Identification documents of the assignor and assignee.

Restrictions on Assignment of Trademark

The Trademarks Act, 1999 provides the following restrictions on trademark assignment:

Parallel Use Restriction  

The assignor cannot assign a trademark when the assignment results in the creation of exclusive rights in different persons with relation to the same or similar products or services and will likely deceive or cause confusion. Thus, multiple exclusive rights relating to the same/similar products or services in different persons are not allowed. It prevents the parallel use of a trademark by more than one person in relation to the same/similar products or services.

Multiple Territorial Use Restriction  

The assignor cannot assign a trademark when the assignment results in the creation of an exclusive right in different persons in various parts of India relating to the same/similar products or services. The assignor cannot assign a trademark when the assignment results in the creation of an exclusive right in different persons in various parts of India relating to the same/similar products or services sold or delivered outside India. Thus, assigning rights in different parts of India relating to the same/similar products or services is not allowed.

Benefits of Trademark Assignment

• The trademark assignment enables the trademark proprietor to encash the value of his/her brand.
• The assignee obtains the rights of an already established brand due to trademark assignment.
• The trademark assignment supports the assignor and the assignee to expand their respective businesses.
• The trademark assignment agreement enables the assignor and the assignee to establish their legal rights in case of any dispute.

Disclaimer: The materials provided herein are solely for information purposes. No attorney-client relationship is created when you access or use the site or the materials. The information presented on this site does not constitute legal or professional advice and should not be relied upon for such purposes or used as a substitute for legal advice from an attorney licensed in your state.

About the Author

Mayashree Acharya

I am an advocate by profession and have a keen interest in writing. I write articles in various categories, from legal, business, personal finance, and investments to government schemes. I put words in a simplified manner and write easy-to-understand articles. Read more

Quick Summary

Was this summary helpful.

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Cleartax is a product by Defmacro Software Pvt. Ltd.

Company Policy Terms of use

Data Center

SSL Certified Site

128-bit encryption

Stamp duty on trademark license agreement in mumbai [With Tuto]

Table of Contents

What is the stamp duty for trademark assignment?

Is stamp duty increase in 2022 in maharashtra, how is stamp duty and registration calculated in mumbai, how is stamp duty and registration paid in mumbai, how do you determine the value of stamp paper for an agreement, what is the validity of stamp duty in mumbai, what is the difference between 100 and 500 stamp paper, what is trademark assignment agreement, can you transfer trademark ownership, what is the difference between assignment and licensing of rights, what trademark cannot be registered, is stamp duty payable on intellectual property, how do i transfer an unregistered trademark, what is stamp duty maharashtra, what is the stamp duty on share purchase agreement in maharashtra, is registration of assignment compulsory in trademark, can unregistered trademark be assigned, is intellectual property dutiable, do you pay stamp duty on a business, do you pay stamp duty when buying a company.

Last updated : Aug 20, 2022

Write a comment

Thanks for this great article

Thanks for your comment Chet Arevalo, have a nice day. - Austin Gildow, Staff Member

Thanks for this interesting article

Thanks Darron your participation is very much appreciated - Austin Gildow

About the author

Austin Gildow

I've studied quantum computing at Cleveland Institute of Art in Cleveland and I am an expert in historical sociology. I usually feel ditzy. My previous job was cabinet maker I held this position for 31 years, I love talking about longboarding and metal detecting. Huge fan of Ron Swanson I practice field hockey and collect coca-cola.

All you ever wanted to know

about "Stamp duty on trademark license agreement in mumbai" .

Try Not to laugh !

Joke resides here...

What is the stamp duty for trademark assignment Is stamp duty increase in 2022 in Maharashtra How is stamp duty and registration calculated in Mumbai How is stamp duty and registration paid in Mumbai How do you determine the value of stamp paper for an agreement What is the validity of stamp duty in Mumbai What is the difference between 100 and 500 stamp paper What is trademark assignment agreement Can you transfer trademark ownership What is the difference between assignment and licensing of rights What trademark Cannot be registered Is stamp duty payable on intellectual property How do I transfer an unregistered trademark What is stamp duty Maharashtra What is the stamp duty on share purchase agreement in Maharashtra Is registration of assignment compulsory in trademark Can unregistered trademark be assigned Is intellectual property dutiable Do you pay stamp duty on a business Do you pay stamp duty when buying a company

Follow Us on Social Media

Search bar.

• Legal Queries
• Files 
• Online Law Courses 
• Lawyers Search
• Legal Dictionary
• The Indian Penal Code
• Juvenile Justice
• Negotiable Instruments
• Commercial Courts Act
• The 3 New Criminal Laws
• Matrimonial Laws
• Data Privacy
• Court Fees Act
• Commercial Law
• Criminal Law
• Procedural Law
• The Constitutional Expert
• Matrimonial
• Writs and PILs
• CrPC Certification Course
• Criminal Manual
• Execution U/O 21
• Transfer of Property
• Domestic Violence
• Muslim Laws
• Indian Constitution
• Arbitration
• Matrimonial-Criminal Law
• Indian Evidence Act
• Live Classes
• Writs and PIL

• Share on Facebook
• Share on Twitter

Share on LinkedIn

Share on Email

Gayatri P Man (Not Applicable)     --> 24 August 2016

Stamp duty for assigning/licensing ipr

 7 Replies

adv.bharat @ PUNE (Lawyer)     --> 25 August 2016

What kind of assignement deed it is?

As per my knowledge ther is no such stamp duty for IPR.

For license agreemnt there is stamp duty & registration charges it is calculated as Total rent+ Deposit X 0.025.

If u like my solution then give THANKS on my profile.

Ms.Usha Kapoor (CEO)     --> 02 September 2016

Dear Client,

                    As  far as copy right is copncerned  stamp duty is  completely exempted according to Article 25 of Schedule 1 of Bombay stamp Act. Regarding Patents and Trade Marks the stamp duty payable depends on the amopunt of consideration exchnged bwetween th eseller and buyer of  the sale/purchase of Patent/Trade Mark.Regarding Licence Agreements of IPRs you contacxt the concerned District Collector  as to applicable rates of stamp duty for Licensing Agreements of IPR transactions.

                    As  far as copy right is copncered  stamp duty is  completely exempted according to Article 25 of Schedule 1 of Bombay stamp Act. Regarding Patents and Trade Marks seller and buyer/Assignor/ Assignee of  the sale/purchase of Patent/Trade Mark.Regarding Licence Agreements of IPRs you contacxt the concerned District Collector  as to applicable rates of stamp duty for Licensing of IPR transactions.

                    As  far as copy right is copncerned  stamp duty is  completely exempted according to Article 25 of Schedule 1 of Bombay stamp Act. Regarding Patents and Trade Marks the stamp duty payable depends on the amount of consideration exchnged bwetween the /Assignor/Assignee seller and buyer of  the sale/purchase of Patent/Trade Mark.Regarding Licence Agreements of IPRs you contact the concerned District Collector  as to applicable rates of stamp duty for Licensing Agreements of IPR transactions.

Ms.Usha Kapoor (CEO)     --> 24 September 2016

Assignment of copyright

Assignment of copyright has to be in writing and signed by the assignor or by his duly authorised agent. Copyright consists of a bundle of different rights in the same work, which can be assigned either as a whole to one party or separately to different parties.

· The deed of assignment must specify the `rights assigned’, the duration and territorial extent of assignment, and the royalty payable, if any. When duration of assignment is not specified, it is presumed to be for five years and when territorial extent is not specified, it is presumed to extend within India. (Section 19, Copyright Act, 1957)

· An assignment of a Copyright is exempted from Stamp Duty. (Article 25 of Schedule I of the Bombay Stamp Act, 1958).

The above provisions apply both to registered and unregistered copyright. Apart from the above requirements, in case of registered copyright, the following additional steps also have to be taken.

Registered Copyright

Assignee has to make an application for registration of changes in the particulars of copyright entered in the Register of Copyrights in Form V under Rule 16 of Copyright Rules, 1958 to be delivered by hand or registered post. Attested copies of the deeds of assignments should be enclosed with the application.

Assignee has to make an application for registration of changes in the particulars of copyright entered in the Register of Copyrights in Form V under Rule 16 of Copyright Rules, 1958 to be delivered by hand or registered post. Attested copies of the deeds of assignments should be enclosed with the application..If you appreciate this answer please click the Thank you button on this forum./

Gayatri P Man (Not Applicable)     --> 01 March 2017

@  adv.bharat @ PUNE and  @ Ms.Usha Kapoor Thanks for your reply.

I am looking for the stamp duty on  the licensing agreement for licensing patent-rights in Maharashtra.

Leave a reply

Your are not logged in . Please login to post replies Click here to Login / Register   

Recent Topics

Related threads.

Popular Discussion

• Joint owners of flat
• Limitation for appeal under 43 rule 1
• Property boundary issue
• Non receipt of surrender value of flat f
• Dishonoured check with wrong surname
• Original public documents are lost
• I have got police man inquiring about
• Eow / mpid case
• Bigamy case
• How to put an objection for property sal

view more »

Browse by Category

• Business Law
• Constitutional Law
• Labour & Service Law
• Legal Documents
• Intellectual Property Rights
• Property Law
• Forum Portal
• Today's Topic
• Popular Threads
• Post New Topic
• Unreplied Threads
• Top Members
• Share Files
• LCI Online Learning

Member Strength 9,45,043 and growing..

Download LCI APP

Our Network Sites

• We are Hiring
• Terms of Service
• Privacy Policy

© 2024 LAWyersclubindia.com. Let us grow stronger by mutual exchange of knowledge.

Lawyersclubindia Search

Whatsapp groups, login at lawyersclubindia.

Alternatively, you can log in using:

• OUR PROFESSIONALS
• DATA PRIVACY

Decoding Indian Stamp Duty Requirement for IP instruments

As per the Indian Law, stamp duty is payable on every instrument [1] . It is an indirect tax paid to the government. The Indian Stamp Act, 1899 (2 of 1899) was enacted to consolidate and amend the law relating to stamps. It extends to the whole of India.

The Indian Stamp Act, 1899 (2 of 1899) is a fiscal statute prescribing the rates of Stamp Duty as specified in Entry 91 of List-I (Union list) of the Seventh Schedule to the Constitution of India List (viz. Bills of Exchange, cheques, promissory notes, bills of lading, letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts)  The States are empowered under Entry 63 of List-II (State list) of the Seventh Schedule to the Constitution of India to prescribe the rate of stamp duty on instruments other than the instruments specified in Entry 91 of Union list.

The Indian Stamp Act, 1899 is a Central enactment and the state have the powers to adopt the Indian Stamp Act, 1899 with amendment to same, to suit the transaction peculiar to each state. Accordingly certain states have introduced Schedule 1 to the Indian Stamp Act, 1899 being the stamp duty payable in each state. State such as Maharashtra (The Bombay Stamp Act, 1958), Gujarat (The Gujarat Stamp Act, 1958), Karnataka (The Karnataka Stamp Act, 1957), Kerela (The Kerela Stamp Act, 1959) and Rajasthan (The Rajasthan Stamp Act, 1998) have their separate Stamp Act, while many State follows the Indian Stamp Act, 1899 [2] .

There are mainly two types of stamp paper.

• Judicial stamp papers: As the name suggest, it is used for Court proceedings.  It is called Court fees.
• Non-Judicial stamp papers: This is used for contractual kind of activities between the parties e.g., contracts, agreements, registration of documents, entering leases /sale purchase transactions etc.

Stamp duty serves as a legal requirement for certain types of transactions to be considered valid and enforceable. For example, a sale agreement for a property must be executed on a stamp paper of appropriate value and stamped according to the relevant state’s stamp duty laws. Failure to pay the appropriate stamp duty on a transaction can result in penalties or fines and may render the document invalid in a court of law.

Stamp Duty payable on instruments specified by the statute is fixed or on ad valorem basis i.e., on basis of value of property. The stamp duty charges are mainly based upon the values which are mentioned in the documents.  e.g., Articles of Association, Mortgage deed etc. However, for few documents e.g., Affidavits, Power of Authorization, indemnity bond, the stamp duty payable is always fixed regardless of the value which is mentioned in the document or the instrument. For certain other instrument, stamp duty is based on the consideration value mentioned in the document or the market value, whichever is higher. e.g.  Conveyance, Sale Agreement, Partnership Deed etc

The payment of Stamp Duty is mostly done before the execution of the document.   Failing to make the necessary payment will result in penalty charges.  Documents which are inadequately stamped are not admitted as evidence in the court.  The stamp papers are to be purchased in the name of one of the parties to the transaction. The validity of a stamp paper is six months from the date of purchase.

Patents, trademarks, and other forms of intellectual property are included within the meaning of movable property under the stamp laws. As such, state specific stamp laws are applicable for the IP rights.  Stamp Duty pertaining to IP rights is levied at various stages of registration, licensing and transferring.

In general, stamp duty is applicable on various types of instruments, including;

• POWER OF ATTORNEY (POA): – If an application for trademark/patent/design or any other Intellectual property rights, is filed in India by a person other than the Applicant, it is mandatory to submit a duly stamped Power of Attorney.  The POA can be signed by the Authorized Signatory of the Applicant. The Stamp duty payable being state specific may approximately be up to 10 USD. There is no requirement for notarization and/or legalization.
• AFFIDAVITS:  In various proceedings, be it at Court or Registry level it is required to file an Affidavit. Basically, an affidavit is a sworn statement put in writing. With respect to trademark, if the Applicant claims prior use of the mark, in such case it is a mandatory requirement to submit the Affidavit of use. The Applicant shall file an affidavit testifying to such use along with supporting documents. [3] .  The Stamp duty payable being state specific, may be up to 5 USD for Affidavit. The Affidavit of use must be duly notarized.
• ASSIGNMENT AGREEMENT : Assignment refers to actual transfers of ownership of intellectual property from the assignor to the assignee.  In this, the rights of the assignor is permanently transferred. It is an absolute transfer.  Such transfer of Intellectual Property rights is carried out by way of an assignment deed. It is pertinent to note that payment of stamp duty is not required for the assignment of Copyrights. Stamp duty is payable on the monetary consideration stated in the assignment deed.  Stamp duty payable varies in each State. The Assignor and Assignee can check for the stamp duty rates in its particular state and thereby execute a assignment deed in which the lower stamp duty is applicable.  The applicable stamp duty rates in India varies from 3% to 7% of the consideration amount, depending on the state wherein it is executed.
• LICENSING AGREEMENT (REGISTERED USER AGREEMENT ): – In a Licensing agreement, the IP holder (€œlicensor€) licenses its IP rights to any third party and allows a third-party to use the said rights for a limited time period.  A licensing agreement is subject to stamp duty. Stamp duty is paid by the licensee to the licensor. 
• BUSINESS AGREEMENTS (e.g., Non-disclosure Agreement, Endorsement Agreement, memorandum of Understanding, Master Service Agreements, Franchise Agreement etc.) Stamp Papers are not mandatory for all the agreements but are necessary only for a few kinds of or instruments or agreements as specified by the State government.  Generally, no stamp duty is payable on MOUs or NDA€™s.  However, as a general practice, people are putting it on stamp paper to make it enforceable in the Court of Law.  A document which is stamped acts as valid evidence in a court of law.

Please feel free to consult us at [email protected]   for drafting and advising and representing any commercial transaction.

[1] €œInstrument€ includes every document by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or record;”

[2] https://www.e-stampdutyreadyreckoner.com/faq-stamps-duty.php

[3] Rule 25 of Trade Marks Rule, 2017- Statement of user in applications€” (1) An application to register a trademark shall, unless the trademark is proposed to be used, contain a statement of the period during which, and the person by whom it has been used in respect of all the goods or services mentioned in the application.

In case, the use of the trademark is claimed prior to the date of application, the applicant shall file an affidavit testifying to such use along with supporting documents.

About the Author

Social share.

Firm’s Information

• Our Professionals
• Data Privacy

StratJuris Partners

Office 301, Westport

Pan Card Club Road

Baner, Pune, Maharashtra

India, 411045

E : [email protected]

H :Monday - Friday: 9:30 AM to 6:30 PM

息 Stratjuris Partners 2018. Powered By: Ziuby A Brand Of Aquaspade

India: The Dos And Don'ts Of Licensing Intellectual Property In India

• What is licensing of intellectual property ("IP")?  

An owner of IP can grant another person the right or permission to make, use or sell property or items embodying or covered by this IP by means of a contractual license. A license may apply to any type of IP – trademark, patent, copyright, design and/or know-how. Under the license, the licensor maintains title in the IP and the licensee is authorized to make use of the IP only in accordance with the terms and conditions of the license.

• What is a licensing agreement?

A license agreement is a document, executed between two or more parties, evidencing the terms and conditions of such contractual license.

• Does a license agreement have to be in writing?

Once an entity/individual has taken the decision to licence its IP, it is imperative that the terms of the licence be captured in writing and explicitly agreed between the parties. Provisions of several acts governing different types of IP such as trademarks, copyrights, patents and design state that the license agreement should be in writing. Know-How as an IP has no specific legislation and though not required to be in writing by statute, it is recommended that license of any know-how be in writing as well to avoid ambiguity.

• A license agreement should be in writing with the relevant terms clearly defined. But if the parties execute a term sheet, would that suffice as a valid license agreement?

For a valid license, not only must the license terms be set out in writing but should also be in the form of a binding definitive document. A non-binding term sheet would not constitute a license agreement as held by the Delhi High Court in 2009.

• What terms are essential to a license agreement and should form an integral part of any license agreement?  
• Definition of Licensed Property
• Exclusivity
• Right to grant sub-licenses
• Revocability
• What is an exclusive license and a non-exclusive license?

An exclusive license excludes the use of the licensed rights for anyone but the licensee. It must be clear whether that is meant to exclude the licensor itself from making use of the intellectual property. A non-exclusive license can be granted as often by the licensor to as many licensees as desired. Most commercial software licensed today is licensed on a non-exclusive basis.

• Difference between exclusive license of IP and assignment of IP?  

There are numerous instances where the licensor has granted an exclusive license and the licensee has claimed that the same is an assignment of the IP. An exclusive license is not an assignment, when you license IP, you are granting the licensee permission to use your IP in a particular way while still retaining an interest in the IP being licensed. When assigning IP to another, there is a transfer ownership from the assignor to the assignee. This is a permanent arrangement, and you cease to hold an interest in the IP once it is assigned. The terms of the license must explicitly state it is a license (whether exclusive or non-exclusive) and define the mutual obligations. Most importantly, the clause on royalty payment should be drafted in a manner that does not give rise to implications that any downright payment is towards assignment of the IP.

• What is royalty?

One of the goals of licencing is to enable the proprietor of IP to receive quantifiable sums of money based on a licensee's use of such licensed IP. The royalty is the consideration amount to be provided to the owner/licensor of the IP for the grant of the license. The consideration may be a lump sum payment or a continuous periodic fee payment, also known as royalties or a combination of lump sum fee and periodic payments.

• How is royalty determined?

The parties to a license are free to select the basis of royalty calculation that meets their commercial requirements. The most common method is the expression of the royalty as percentage revenue, other methods include:

• A single up-front payment;
• A pre- determined amount that is paid periodically;
• A charge based on units of manufacture or sales;
• On early stage technology, royalties can be based on development costs.
• Who owns any improvements, enhancements and modifications to the licensed IP?  

A person may create and design an improvement of an existing technology or a feature that enhances the use or functionality of the technology. The new invention may come about as a result of an idea that relates to the use of the licensed IP, or it may actually be the result of modification of that IP in order to produce any enhancement. An "improvement" in the context of IP licenses, usually means a development within the field of the licensed technology that enhances the usability, functionality, efficiency, performance or other characteristic of the original IP. A license agreement must spell out what constitutes an improvement and who owns such improvement and all IP that vests in the same. The license agreement also needs to provide for ownership of IP if there is any joint development.

• Is stamp duty payable on license agreements?  

Stamp duty refers to a tax on a transaction which is paid to the government and the tax is levied on the instrument recording the transaction. Stamp duty is payable on license agreements and the rate of stamp duty payable varies in each State. Prior to the execution of a license agreement, it is important to understand if the benefit of executing the license agreement in a particular state and availing lower stamp duty rates can be obtained.

• What are the consequences of not paying stamp duty?

Under the Indian Stamp Act, 1899 if adequate stamp duty has not been paid on a document, such document cannot be admitted in evidence for any purpose nor can it be acted upon, registered or authenticated.  

• Is registration of a licensing agreement mandatory?  

The acts governing different types of IP include provisions regarding the requirement of registration of a license agreement. Where the statute mandates registration of the license agreement, both the licensor and licensee must ensure that the same is registered within the prescribed time period.

• Patents – The Patents Act, 1970 states that a license agreement must be registered and that a licensee should apply in writing to the Controller of Patents for registration of his title.
• Trademark – The Trade Marks Act, 1999 does not make registration of a license agreement mandatory, however it does provide for the concept of 'registered user'. Provisions have been set forth to register any person other than the registered proprietor as the registered user for the use of the mark in commerce. The act provides that registered user can file infringement proceedings in his own name.
• Copyright – The Copyright Act, 1957 does not make registration of the license agreement mandatory.
• Design – The Designs Act, 2000 requires that an application for registration of title under a license agreement is filed with the Controller within six months from the execution of the license agreement. A license agreement in respect of which no entry has been made in the register cannot not be admitted in evidence in any court in proof of the title to copyright in a design or to any interest therein, unless otherwise directed by the court.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

  © Mondaq® Ltd 1994 - 2024. All Rights Reserved .

Login to Mondaq.com

Password Passwords are Case Sensitive

Forgot your password?

Why Register with Mondaq

Free, unlimited access to more than half a million articles (one-article limit removed) from the diverse perspectives of 5,000 leading law, accountancy and advisory firms

Articles tailored to your interests and optional alerts about important changes

Receive priority invitations to relevant webinars and events

You’ll only need to do it once, and readership information is just for authors and is never sold to third parties.

Your Organisation

We need this to enable us to match you with other users from the same organisation. It is also part of the information that we share to our content providers ("Contributors") who contribute Content for free for your use.

06 February 2017

Stamp Duty issues in slump sale transactions

by Rohit Subramanian

Slump sale is a commonly used method of business acquisition wherein an undertaking as a “going concern” is transferred from one entity to another. The term ‘ slump sale ’ incorporated under the Income Tax Act, 1961 [See End Note 1] (“IT Act”) has been defined to constitute the following elements: (a) sale of an undertaking/business activity [See End Note 2] taken as a whole – lock, stock and barrel ; (b) sale shall be for a lump sum consideration; and (c) no separate values shall be assigned to individual assets and liabilities.

However, specific values can be assigned to individual assets or liabilities for the sole purpose of payment of stamp duty, registration fees or other similar taxes or fees. This is because the assets constituting the business in a slump sale transaction may include movable property (tangible and intangible, including intellectual property), immovable property (land, buildings, plant & machinery that are permanently fixed or embedded to the earth), unsecured loans, advances/deposits, human resources and contracts, and stamp duty chargeability and registration requirement for each type of asset/liabilities shall vary. In order to give effect to the transaction, the parties typically enter into a Business Transfer Agreement (“BTA” or “Agreement”), which inter alia records the following terms and conditions: 

• The assets of the business undertaking to be transferred to the Purchaser are listed in the schedule to the Agreement;
• The lump sum consideration for sale is specified ( sale price is generally based on a business valuation report );
• The BTA shall specify the date (“Closing Date”), prior to which all necessary approvals, permissions, documents to consummate the transaction are obtained;
• Typically, the seller shall make requisite representations and warranties with respect to the legal status and financial health of the business undertaking as on the Closing Date;  
• Upon obtaining all requisite documents and approvals, the transfer of business takes place on the Closing Date.

Stamp Duty chargeable on BTA

Stamp duty is a duty payable upon the execution of certain instruments or documents specified in the Indian Stamp Act, 1899 (“IS Act”) or the relevant state Stamp Act as the case maybe. In absence of any State stamp legislation, the IS Act applies. The general principle with regard to stamp duty is that duty has to be determined with reference to an instrument, not in reference to a transaction.[See End Note 3] Therefore, to understand the stamp duty liability for a specific transaction, it is important to understand the instruments involved in the transaction and the subject-matter of the instrument.[See End Note 4]

It is common practice for a BTA to be structured as an “ agreement to sale ”. In such cases, the Agreement provides a general framework pursuant to which the business undertaking is transferred on the Closing Date. BTA in itself may not contemplate any transfer and can mandate the execution of a deed of “ conveyance ”[See End Note 5] on or before the Closing Date to effectuate the transfer. However, there are instances where the Agreement contains recitals with respect to the payment of consideration, handing over of the possession of property along with title deeds of such property. In such cases, the BTA assumes the color of a “conveyance” and stamp duty is levied accordingly.

Since the transfer envisaged under the Agreement is the sale of a business undertaking as a whole, it cannot be specifically equated with the sale of movable or immovable property. The IS Act as well as State Stamp Acts do not contain specific provisions levying duty on an agreement relating to the transfer of “business” as such. Therefore, it is imperative that each asset proposed to be transferred to the purchaser vide a BTA is individually identified for the purpose of stamp duty as movable or immovable. The levy of stamp duty depends on the State in which the Agreement is executed. For better clarity, let us examine the stamp duty implications on a BTA under Central and certain State legislations.

Positon under the Indian Stamp Act, 1899

On perusal of the definition of “conveyance” under the IS Act, it is understood that no distinction is made between moveable and immovable property.[See End Note 6] Tangible moveable property can be sold by delivery to the purchaser on receipt of the price without an actual conveyance, but if a conveyance in writing comes into existence, it is chargeable to duty as such. Intangible movable property such as actionable debt or goodwill has to necessarily be transferred under a written instrument and chargeable as conveyance. Whereas land/buildings are immovable property, machinery installed in a factory premises (fixed to the ground) can be considered as an immovable property, depending on the degree and permanency of the attachment, and the purpose of installing and attaching the machinery. For instance, the sale of a fertilizer plant as part of a slump sale along with land and building, would be considered as immovable property if it was always intended that the plant remains permanently affixed to the land and building being transferred.[See End Note 7]

Article 5 to the Schedule of the IS Act prescribes the stamp duty chargeable on an “ Agreement or Memorandum of an Agreement ”. Article 5 further sub-classifies several categories on the basis of the subject-matter of an agreement prescribing specific duty applicable to a particular instrument. A residuary provision is provided under Article 5(c) wherein all such agreements not specifically provided for are classified and duty payable is separately prescribed.

If a contract does not intend to operate as an immediate transfer of the sale of property, such instrument is required to be stamped as an agreement rather than a conveyance. An agreement to sell a business undertaking with its assets including goodwill, would not amount to conveyance but would be merely a contract to sell, although the parties intended that when the transaction was completed, it should take effect from the date of the agreement and although in order to effect the contemplated sale, no actual deed of conveyance was prepared subsequently with regard to goodwill and movables (a sale deed being executed only in respect of immovable property).[See End Note 8]

Therefore, under the IS Act, a BTA not evidencing a transfer of property shall be duly stamped as an agreement under Article 5(c), thereby requiring deed of conveyance to be executed on or before the Closing Date. Whereas the execution of a conveyance deed for the purpose of immovable property is absolutely necessary to establish title and ownership, transfer of ownership of movable property can be made by delivery of such property. In the event the BTA records the transfer of both movable and immovable property without the requirement of executing a conveyance deed, the BTA shall be construed as a conveyance and stamp duty as prescribed under Article 23 would be leviable on the said instrument.   

Position under the Bombay Stamp Act, 1957 (“BS Act”)

The BS Act follows a scheme similar to the IS Act, wherein Article 5 of its Schedule prescribes stamp duty to be levied on an instrument which is an “ Agreement or its records or Memorandum an Agreement ”. It is to be noted that Article 5(h)(A)(iv) specifically identifies an agreement that: (a) creates any obligation, right or interest; (b) has monetary value; and (c) is not covered under any other provision of the BS Act.

The stamp duty chargeable may extend up to two rupees for every thousand rupees of the monetary value stated in the Agreement. An agreement in the nature of a BTA squarely falls under Article 5(h)(A) of the BS Act. Despite the generic nature of the description in Article 5(h)(A), the BS Act has retained a residuary provision under Article 5(h)(B) which prescribes stamp duty of only INR Hundred (100) with respect to agreements not otherwise provided for. Given that Article 5(h)(A) describes the instrument more specifically, a BTA executed in the State of Maharashtra should be duly stamped under Article 5(h)(A) rather than Article 5(h)(B).

Article 25 of the BS Act prescribes the stamp duty payable on an instrument of conveyance with respect to movable and/or immovable property, as the case may be. However, the BS Act specifically states that if an agreement to sell an immovable property effectuates the transfer of possession of such property before or after execution, the same shall be deemed to be a conveyance and stamp duty shall be levied accordingly. The BS Act also provides an exemption in case the ‘ agreement to sale ’ is deemed as a conveyance. That is, in case the BTA itself effectuates the transfer of movable and immovable property constituting the business, resulting in such instrument being duly stamped as conveyance under Article 25 of the BS Act, the stamp duty paid on such agreement shall be adjusted towards the total stamp duty leviable on the conveyance deed.

Position under the Karnataka Stamp Act, 1957 (“KS Act”)

The KS Act deviates from the BS Act as well as the IS Act, in light of specific provisions dealing with the transfer of movable and immovable property under Article 5 of KS Act. Article 5(e) of the KS Act prescribes the stamp duty chargeable on an agreement relating to sale of immovable property with part-performance of the contract being made. In the event possession of the property is delivered or agreed to be delivered prior to execution of conveyance, the stamp duty prescribed is the same as the duty prescribed with respect to a conveyance deed as specified in Article 20. Similar to the BS Act, the KS Act also provides for set-off of the stamp duty against the duty paid on the conveyance deed. In the event possession of the property is not delivered, the stamp duty liability on such agreements shall be restricted to INR twenty thousand.

Similarly, Article 5(g) of the KS Act prescribes the stamp duty payable with respect to an agreement relating to the sale of movable property. In the event possession of movable property is delivered or agreed to be delivered without executing a conveyance deed, the stamp duty prescribed on such agreement is three percent (3%) of the consideration or the market value of the property, whichever is higher. In the event the possession of the property is not delivered, the stamp duty liability is restricted to INR twenty thousand. Apart from these provisions, a residuary clause under Article 5(j) of the KS Act provides that any agreement not specifically provided for in Article 5 shall be duly stamped for INR two hundred. Therefore, the stamp duty payable on a BTA executed in the State of Karnataka shall depend upon the structure of the BTA, whether conveyance deed is proposed to be executed by the parties with respect to the movable properties forming part of the business undertaking and whether a business undertaking purported to be transferred under a BTA can be equated to a movable property or an immovable property.

Word of caution

BTA typically comprises of numerous items of transfer, which may include all kinds of tangible, intangible, contracts, movable property and immovable property. While a slump sale transaction is the preferred mode of business acquisition from an income-tax perspective, given the complexities involved in the determination of stamp duty on the instrument of transfer, it is recommended that the parties should approach the relevant stamp authority for adjudication of stamp duty [See End Note 9] and seek the opinion of the District Officer with respect to the determination of the duty chargeable on the instrument, if there is any ambiguity in the concerned Stamp Act. It is always necessary and beneficial for the parties to treat stamp duty aspects very carefully to avoid any penalties, which can be as high as ten times the actual stamp duty payable. 

[ The authors are Associate and Joint Partner, respectively in Corporate Practice, Lakshmikumaran & Sridharan, Bengaluru ]

• Section 2(42C) of the Income Tax Act, 1961
• Explanation 1 to Section19AA defines “ undertaking ” to include any part of an undertaking, or a unit or division of an undertaking or a business activity taken as a whole , but does not include individual assets or liabilities or any combination thereof not constituting a business activity.
• Swadeshi Cotton mills Co, in Re AIR 1932 All 29.
• Section 2(14) of the IS Act defines “ Instrument ” to include every document by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded.
• In terms of the IS Act, the term “conveyance” has been defined in an exhaustive manner to include any instrument or conveyance on sale, by virtue of which any property (moveable or immovable) is transferred inter vivos and which is not specifically provided in the schedule to the IS Act.
• "Immovable property" includes land, benefits to arise out of land, and things attached to the earth, or permanently fastened to anything attached to the earth and “movable property” includes any property except immovable property.
• Duncans Industries Ltd v. State of UP, AIR 2000 SC 355.
• In Re, Swadeshi Cotton Mills Co 1932, ALJ 394: AIR 1932 ALL 291 (SB) and others.
• Section 31 of the IS Act, BS Act and the KS Act.

Browse articles

The rules of the Bar Council of India prohibit law firms from advertising and soliciting work through communication in the public domain. This website is meant solely for the purpose of information and not for the purpose of advertising. Lakshmikumaran & Sridharan does not intend to solicit clients through this website. We do not take responsibility for decisions taken by the reader based solely on the information provided in the website. By clicking on ‘ENTER’, the visitor acknowledges that the information provided in the website (a) does not amount to advertising or solicitation and (b) is meant only for his/her understanding about our activities and who we are. By continuing to use this site you consent to the use of cookies on your device as described in our Cookie Policy

404 Not found

Sign In to Digit

• Car Insurance
• Two Wheeler/Bike Insurance
• Commercial Vehicle Insurance
• Taxi/Cab Insurance
• Auto Rickshaw Insurance
• Truck Insurance
• Health Insurance
• Super Top-up Health Insurance
• Arogya Sanjeevani Policy
• Corporate Health Insurance
• Health Insurance Portability
• International Travel Insurance
• Shop Insurance
• Home Insurance
• Digit Life Insurance (clicking here will take you to Digit Life Website)

File a Claim

File health claim, file motor claim for garages, check health claim status, digit cashless garages, digit cashless hospitals, anywhere cashless hospitals, become digit posp, check pending challans, free credit score check, download digit policy, download digit app, marine open certificate issuance, grievance redressal procedure, irdai's call centre feedback survey.

• Car Insurance 25% OFF
• Two Wheeler/Bike Insurance 25% OFF
• Commercial Vehicle Insurance 25% OFF
• Taxi/Cab Insurance 25% OFF
• Auto Rickshaw Insurance 25% OFF
• Truck Insurance 25% OFF
• Health Insurance 25% OFF
• Super Top-up Health Insurance 25% OFF
• Arogya Sanjeevani Policy 25% OFF
• Corporate Health Insurance 25% OFF
• Health Insurance Portability 25% OFF
• International Travel Insurance 25% OFF
• Shop Insurance 25% OFF
• Home Insurance 25% OFF
• Digit Life Insurance (clicking here will take you to Digit Life Website) 25% OFF
• हिंदी English

Our WhatsApp number cannot be used for calls. This is a chat only number.

More Products

Documentation

Quick Claim

Terms and conditions apply*

Terms and conditions

Stamp Duty and Property/Flat Registration Charges in Mumbai

Buyers need to pay stamp duty and registration charges to the state government while purchasing any movable or immovable assets. The purpose behind paying these charges is to register the property against a buyer’s name in the municipal record.

According to Section 3 of the Indian Stamp Act, 1899, it is a mandatory payment for legal possession of a property.

If you plan to buy a property in Mumbai, go through this article to find out applicable registration charges and stamp duty in Mumbai along with other important details.

What Are the Stamp Duty Rates in Mumbai?

The Maharashtra Government has revised stamp duty in the state. Earlier, it reduced the stamp duty by 3% from 1st September to 31st December 2020. The applicable reduced rate was 2% from 1st January to 31st March 2021.

The latest stamp duty rates in Mumbai vary based on the semi urban and rural areas. For instance, the stamp duty rate for areas within gram panchayat limits, municipal limits of urban areas, and within municipal councils or panchayats or cantonments are 3%, 5% and 4% respectively. Also, the stamp duty varies depending on the owner of the property. Have a look below to know more.

Read more about Property Insurance in India

What Are the Present Stamp Duty and Registration Charges in Mumbai?

Take a look at the current stamp duty in Mumbai in this table illustrated below.

Stamp Duty in Mumbai as Per Area Type

Here are the stamp duty rates in Mumbai applicable on the sales deed in areas other than urban localities. Here are the details:

Stamp Duty on Different Property Deeds in Mumbai

Here are the applicable stamp duty rates in Mumbai along with the rest of Maharashtra on different property deeds -

The registration for each city is like that of Mumbai.

How to Calculate Registration Charges and Stamp Duty in Mumbai?

The calculation of stamp duty is based on the ready reckoner rates and property value. A ready reckoner rate is the minimum value below which you cannot purchase a property. Stamp duty is mainly charged on a higher ready reckoner rate or the property value.

This means if a property value is worth ₹60,00,000 and the ready reckoner rate is ₹50,00,000, stamp duty will be applicable on the higher value, that is, ₹60,00,000.

Now, let’s compute the stamp duty on property in Mumbai for a flat in Worli -

Here is an illustration for a property worth more than ₹30,00,000 -

Conversely, following is an example for a property worth less than ₹30,00,000 -

What Are the Steps to Use a Stamp Duty Calculator?

You can skip manual calculation and use an online stamp duty calculator to save time and effort.  To use this stamp duty calculator, follow the simple steps below:

• Step 1 : Visit the stamp duty online calculator page . Select the option based on your requirement, such as “Sales Deed” and “Agreement to sale”.
• Step 2 : Select an area, that is, Municipal Corporation or Gram Panchayat. Choose a municipal corporation area to which you belong, for example, Municipal Corporation Mumbai.
• Step 3 : Enter the consideration property value and market value to get the applicable stamp duty in that area.

How to Pay Stamp Duty and Registration Fees in Mumbai?

You can pay registration fees and stamp duty in Mumbai online and offline. Here are the simple steps to follow -

Online Procedure

• Step 1: Visit theGovernment Receipt Accounting System website . Select “Inspector General Of Inspection” and click on “Pay Without Registration”.
• Step 2:  Now select “Citizen and choose “Make Payment to Register Your Document” from the drop-down list. Select “Pay Stamp Duty and Registration Fee Together”.
• Step 3:  Fill in the online form with relevant information such as district, registrar office and other details.
• Step 4:  Select the payment mode, bank and enter the captcha to proceed.
• Step 5:  If you select payment across the bank, you must pay stamp duty in cash or cheque to the listed banks. After the end of the transaction, you will receive a challan. Collect the Government Reference Number for future reference. You will also get details such as the Branch code, CIN and PRN number of the bank.

Offline Procedure

You can opt from the following mode to pay property stamp duty and registration charges offline -

• Stamp Paper

What Are the Points to Consider Before Paying Stamp Duty in Mumbai?

Here are a few essential points you need to consider before paying stamp duty in Mumbai -

• All assets applicable for stamp duty must be stamped before registration or the next working day from the execution date. If a property deed is executed outside the territory, it can be stamped within 3 months. Here, execution means signatures of both the parties involved in the transaction on the agreement.
• The date of the issued stamp paper must not be more than 6 months from the transaction date.
• A stamp paper must be in the name of individuals involved in a transaction.

You can pay stamp duty in Mumbai via adhesive stamps. This adhesive stamp is removed at the execution time so that it is not available for reuse.

What Are the Factors That Affect Stamp Duty in Mumbai?

  Several factors affect the stamp duty in Mumbai. Here they are as follows:

Are Tax Benefits Available on Stamp Duty and Registration Charges?

Yes. According to Section 80C of the Income Tax Act 1961, expenses related to stamp duties and registration charges directly related to the transfer are eligible for a tax deduction. The maximum deduction limit is ₹1,50,000.

Individuals and HUFs are eligible to claim deduction under the following circumstances -

• You can claim tax deduction during the year the actual payment of these expenses is made.
• The property construction is complete, and you are the legal owner of the respective property.
• Commercial property, residential plot and resale property are not eligible for a tax deduction. Only new residential property qualifies for exemption.
• Co-owners in joint ownership can claim a tax deduction on their tax returns. The deduction is based on their share in a property. The maximum deduction limit remains at ₹1,50,000. However, if a taxpayer possesses complete or partial property ownership, he/she cannot claim this tax exemption.
• If there is a property transfer within 5 years of purchase, you are liable to pay the tax in the assessment year when you transferred this property.

A total of 3244 properties were registered in Mumbai recently , generating ₹249.42 crores in stamp duty and registration fees. This is as per the Maharashtra Department of Registration and stamps. At present there is a 6% stamp duty fee and 1% registration, besides other taxes such as the metro cess and local body tax. However, women homebuyers have been given a 1% waiver in stamp duty.

So, whether you are a real estate developer or a homebuyer, it is a viable opportunity. Before moving ahead, make sure to check stamp duty rates in Mumbai and calculation procedures to avoid any last-minute inconvenience.

FAQs About Stamp Duty and Property Registration Charges in Mumbai

Can i get a refund of the stamp duty in mumbai.

Yes. You can get a refund of the stamp duty in Mumbai only against specific situations. A few of them are: The stamp paper has errors in information The stamp paper is duly signed, but the transaction is illegal as per Section 31 of Specific Relief Act.

Yes. You can get a refund of the stamp duty in Mumbai only against specific situations. A few of them are:

• The stamp paper has errors in information
• The stamp paper is duly signed, but the transaction is illegal as per Section 31 of Specific Relief Act.

What happens if you do not pay the stamp duty in Mumbai?

You need to pay the outstanding stamp duty along with a monthly 4% penalty on this due amount. Penalty charges change as per the requirement.

Is stamp duty inclusive of GST?

No. GST and stamp duty are two different taxes. Both have no impact on each other.

Please try one more time!

Stamp Duty in Different States & Cities in India

Other articles about property tax.

Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.

• Digit Insurance
• Property Tax Online
• Stamp Duty and Registration Charges in Mumbai

Last updated: 2024-03-14

Get our app

• Motor Insurance
• Bus Insurance
• Tractor Insurance
• Commercial Van Insurance
• Passenger Carrying Vehicle Insurance
• Heavy Vehicle Insurance
• Goods Carrying Vehicle Insurance
• Commercial Vehicle Third Party Insurance
• E-Rickshaw Insurance
• Electric Car Insurance
• Pay As You Drive
• Electric Bike Insurance
• Types of Motor Insurance
• Comprehensive vs Zero Depreciation
• Comprehensive Health Insurance
• Wellness Benefits
• Diabetes Health Insurance
• Family Floater VS Individual Health Insurance
• Health Insurance for Parents
• Health Insurance Plans for Family
• How to Lower Your Health Insurance Premium
• Indemnity Health Insurance
• Individual Health Insurance
• Health Insurance Premium Calculator
• Health Insurance Tax Benefits
• Health Insurance for Senior Citizen
• Health Insurance in Bangalore
• Corona Health Insurance
• Health Insurance covering Critical Illness
• Family Floater Health Insurance
• Third Party Bike Insurance
• Comprehensive Bike Insurance
• Zero Depreciation Bike Insurance
• NCB in Two Wheeler Insurance
• IDV Value Calculator for Bike
• Cashless Bike Insurance
• Add-on Cover in Bike Insurance
• Bike Insurance Calculator
• Own Damage Bike Insurance
• Comprehensive vs Third Party Bike Insurance
• Compare Bike Insurance
• Royal Enfield Classic Insurance
• Best Scooty in India
• How to Transport a Bike by Train
• Difference between Torque & BHP in Bikes
• Car Insurance Calculator
• Third Party Car Insurance
• Comprehensive Car Insurance
• Zero Depreciation Car Insurance
• NCB in Car Insurance
• IDV Calculator for Car
• Bumper to Bumper Car Insurance
• Own Damage Car Insurance
• Comprehensive vs Third Party Insurance
• Compare Car Insurance
• Find Vehicle Registration Details Online
• CNG Car Insurance
• Own Damage Insurance
• Popular Car Insurance
• Car Segment Guide
• What is RPM in Cars
• Property Insurance
• Fire Insurance
• Burglary Insurance
• Building Insurance
• Office Insurance
• Bharat Griha Raksha Policy
• Bharat Laghu Udyam Suraksha Policy
• Bharat Sookshma Udyam Suraksha Policy
• Home Insurance for Home Loan
• Pet Insurance
• Mobile Insurance
• Home Insurance Premium Calculator
• Top Low-Investment Franchise Businesses in India
• Assessing Officer of Income Tax Department
• Identity Theft & Frauds
• What is Financial Planning
• Management Liability Insurance
• General Liability Insurance
• Fidelity Insurance
• Professional Liability Insurance
• Workmen Compensation Insurance
• Money Insurance Policy
• Sign Board Insurance
• Plate Glass Insurance
• Erection All Risk Insurance
• Contractors' All Risks Insurance
• Directors' and Officers' Liability Insurance
• Marine Cargo Insurance
• Contractors' Plant and Machinery Insurance
• What is Micro-enterprise
• Difference Between Trademark and Patent
• Different Types of Industries
• Machinery Breakdown Insurance
• Non-Creamy Layer Certificate
• Income Tax Calculator
• Sukanya Samriddhi Yojana Calculator
• HRA Exemption Calculator
• BMI Calculator
• Bike Loan EMI Calculator
• EPF Calculator
• Atal Pension Yojana Calculator
• Personal Loan EMI Calculator
• ULIP Calculator
• Vehicle Road Tax Calculator
• Online GST Calculator
• SIP Calculator
• 80D Deduction Calculator
• Human Life Value Calculator
• Ovulation Calculator
• Invoice Generator
• PDF to JPEG Converter
• Rent Receipt Generator
• What is Credit Score
• What is Public Provident Fund
• What is Sukanya Samriddhi Yojana
• Property Tax Guides
• Road Tax Guides
• How to Apply for Reissue of Passport
• Income Tax Slabs in India
• What is Atal Pension Yojana Scheme
• Everything about EPF
• Financial Planning for Women
• Financial Planning for Salaried Employees
• Everything about NPS
• ULIP vs Mutual Funds
• What is Basic Salary
• What is Professional Tax
• Everything about Annuity
• What is UPI Reference Number
• QR Code Guides
• Investment Guides
• Aadhaar Card Guides
• Is KYC Mandatory for Buying Insurance
• Everything about GST
• GST Registration in India
• Types of Insurance
• Types of General Insurance
• Government Holidays in India
• Indian Passport Rank
• Visa Free Countries for Indians
• Visa on Arrival for Indians
• PAN Card Guides
• Business Insurance Guides
• Best Business Ideas
• What is Custom Duty
• What is Debenture
• What is Nominal Account
• How to Drive a Car
• PUC Certificate
• Vehicle Registration Certificate
• New Traffic Fines
• Fine for Driving without Helmet
• Types of Driving Licence in India
• Driving Licence in Delhi
• Driving Licence in Bangalore
• Driving Licence in Jaipur
• Bangalore Traffic Fines
• Pune RTO Fine
• RTO Ahmedabad
• RTO Bangalore
• RTO Lucknow
• RTO Chennai
• Reasons for Visa Rejection
• Check UK Visa Application Status
• Schengen Travel Insurance
• Thailand Travel Insurance
• USA Travel Insurance
• Dubai Travel Insurance
• What Is Bangkok Famous For?
• Best Countries to Visit in August
• Best Beaches in the Maldives
• How to Get PR in Australia
• Countries with Easy Work Visa Process
• Foriegn Embassies in India
• Indian Embassies in Foriegn Countries
• Travel Insurance covering Adventure Activities
• Lost Your Passport When Travelling
• Apply for Schengen Visa from India
• Minimise the Cost of Travel Insurance
• How to Get International Driving License
• India Travel Guides
• Student Travel Insurance
• Family Travel Insurance
• Digit Insurance Reviews
• Car Insurance Reviews
• Bike Insurance Reviews
• Commercial Vehicle Insurance Reviews
• Travel Insurance Reviews
• Health Insurance Reviews
• Mobile Insurance Reviews
• General Insurance Agent
• Health Insurance Agent
• Motor Insurance Agent
• Everything about DigiLocker
• Bank Branch Locator
• IFSC Code Finder
• Excise Duty on Fuel in India
• Which Fuel is Used in Aeroplane
• Deductions & Exemptions Under the New Tax Regime
• Cooling System in Automobiles
• Importance of Motorcycle Helmets

CIN: U66010PN2016PLC167410, IRDAI Reg. No. 158.

Go Digit General Insurance Limited (formerly known as Oben General Insurance Ltd.) - Registered Office Address - 1 to 6 floors, Ananta One (AR One), Pride Hotel Lane, Narveer Tanaji Wadi, City Survey No.1579, Shivaji Nagar, Pune-411005, Maharashtra | Corporate Office Address - Atlantis, 95, 4th B Cross Road, Koramangala Industrial Layout, 5th Block, Bengaluru-560095, Karnataka | Trade logo of Go Digit General Insurance Ltd. displayed above belongs to Go Digit lnfoworks Services Private Limited and is provided and used by Go Digit General Insurance Ltd. under license.

• 1 Favorites
• Customer Login

• Andhra Pradesh
• Arunachal Pradesh
• Himachal Pradesh
• Jammu & Kashmir
• Madhya Pradesh
• Maharashtra
• Uttar Pradesh
• Uttarakhand
• West Bengal
• Daman & Diu
• Dadra & Nagar
• Andaman & Nicobar
• Chattisgarh
• Bhubaneswar
• Gandhi Nagar
• New projects
• Ready to move
• Budget Friendly
• Builder Floors
• For Bachelor
• NRI Projects
• About TimesProperty.com
• Events/Webinar
• Property Guide
• Community Forum
• Customer Form
• Builder Form
• Brand Partner
• Area Calculator

Need any help?

Search here.

Register for features like favorites, compare, comprehensive advice.

Already a member?

Login to retrieve your previously saved properties and more

By continuing, you agree to Timesproperty’ T&C & Privacy Policy

Enter Your Mail ID

Simplify your home buying journey with Times Property. Connect with an expert today!

I agree to Timesproperty.com T&C & Privacy Policy

Stamp Duty Charges Maharashtra: An All-Inclusive Guide

Share this Story

Stamp Duty and Registration Charges: A Surprise 

Maharashtra stamp duty and registration fees in 2022 , what is the maharashtra stamp act .

All you need to know about stamp duty and registration charges in Maharashtra, the process of stamp duty Maharashtra online, and more. The reduction in stamp duty in Maharashtra from September 1, 2020, to December 31, 2020, and from January 1, 2021, to March 31, 2021, was a welcome move, particularly in Mumbai and Pune, where property costs a...

Maharashtra Stamp Duty And Registration Charges 

So, what exactly is stamp duty , how much was recently reduced in maharashtra's stamp duty , how will this price cut affect buyers , factors affecting stamp duty., percentage of stamp duty is determined by two critical factors: , how are stamp duty charges determined , calculate stamp duty. , stamp duty on conveyance deed in maharashtra. , stamp duty in mumbai., stamp duty on past property documents in maharashtra , maharashtra stamp duty and registration fees in 2022: payment online , maharashtra stamp duty refund , online forms must be completed in order to receive a stamp duty refund. , stamp duty adjudication in maharashtra , maharashtra 2021 notice of intimation charges. , how has maharashtra's stamp duty affected property registration , latest maharashtra stamp duty and registration fees updates., news view all -->.

Project Monitoring Unit For PMAY In Maharashtra

With the introduction of the Project Monitoring Unit, citizens can expect a faster completion rate The Pradhan Mantri Awas Yojana (PMAY) scheme launched in 2015, continues to kindle hope of being a

All Your Queries About Stamp Duty Answered

One of the major costs that a homebuyer has to bear when buying a house is the stamp duty. Read on as we answer some key questions about it Stamp duty is perhaps one of the most important lega

Stamp Duty SOP For Resale Of Properties Extended To 3 Year

The state assembly on Wednesday passed a bill extending the set-off (adjustment) period for stamp duty payment from one year to three years for every new property resale  Accordingly, the stam

SRA To Launch Amnesty Plan To Revive 380 ‘Dead’ Projects

In a bid to revive the 380 dead slum redevelopment projects, the Slum Rehabilitation Authority (SRA) will soon roll out an amnesty scheme. Under it, financial institutions (FIs) like non-banking finan

Stamp Duty Cut: A Move To Boost Property Sales

With the Maharashtra government announcing one per cent cut on stamp duty charges for women home-buyers, and the Karnataka government reducing stamp duty charges to three per cent for homes valued bet

All about Indian Insolvency Laws

The stamp duty payable during assignation of debt by Asset Reconstruction Companies – By Adv. Haaris Moosa

The stamp duty payable during assignation of debt by Asset Reconstruction Companies

Adv. Haaris Moosa

Stamping has been used by litigators as a deus ex machina for long. Insufficient stamping determines the fate of a case quite independent of its facts or merits. The interplay of the stamping legislations with the Insolvency and Bankruptcy Code, 2016 (IB Code, 2016), has not been adequately analysed by either courts or tribunals.  Stamping in India is regulated by both Union and State legislations since it is covered by Entry 91 of the Union List and Entry 63 of the State List. The Union legislation is the Indian Stamp Act, 1899 (ISA, 1899) 1 and almost all the States have their own stamping statutes. The stamping legislations of old vintage have stood their ground even with the coming of avant garde legislations meant to streamline commercial transactions like the Arbitration and Conciliation Act, 1996, SARFAESI Act, 2002, Companies Act, 2013 and now the IB Code,2016.

In Phoenix ARC Private Limited, Mumbai Vs. M/S. Cherupushpam Films Pvt Limited, Ernakulam (2023) ibclaw.in 48 NCLT  (hereafter Phoenix ARC ) the question raised before the NCLT, Kochi Bench was whether stamp duty has to be paid on a deed assigning debt to an Asset Reconstruction Company (ARC).  The NCLT Kochi Bench has held that the ARC is bound to pay the appropriate stamp duty as per the relevant state legislation, in this case the Kerala Stamp Act, 1959 (KSA, 1959) 2 .  The Hon’ble NCLT held that the applicability of KSA 1959 2 is not ruled out by the prescription under Section 8F of the Indian Stamp Act, 1899 (ISA, 1899) which exempts ARCs from paying any stamp duty on “ any agreement or other document for transfer or assignment of rights or interest in financial assets of banks or financial institution s” covered under section 5 of the SARFAESI Act, 2002.

KSA, 1959 in section 25, declares the assignment of a debt to be a conveyance, and the duty payable has been pegged at 8%. In the instant case, the Tribunal found that the assignment deed was to be stamped at 8% as per Section 25 of KSA, 1959 since the agreement was made in Kerala. Interestingly in the instant case, the stamp duty as per KSA, 1959 comes to Rs. 6,33,99,500/- while the assignment deed was found to be made on a non-judicial stamp paper of Rs. 500/-. Consequently, the Tribunal found the assignment deed to be unenforceable for insufficient stamping. Phoenix ARC breaks new ground in holding that the assignment of a debt to an Asset Reconstruction Company is liable to be stamped as per the concerned state stamping legislation.

In Essar Steel India Ltd. Committee of Creditors v. Satish Kumar Gupta [2019] ibclaw.in 07 SC  (hereafter Essar Steel ) the supreme court confirmed the decision of the NCLAT, [2019] ibclaw.in 109 NCLAT in affirming the decision of the NCLT in rejecting an application that suffered from insufficient stamping. And held that “Further, the submission of the Appellants that they have now paid the requisite stamp duty, after the impugned NCLAT judgment, would not assist the case of the Appellants at this belated stage. These appeals are therefore dismissed.” 3 Quite to the contrary, in Praful Nanji Satra v. Vistra ITCL (India) Ltd. (2022) ibclaw.in 550 NCLAT , the NCLAT went on to reject an argument for dismissal of an application for insufficient stamping, holding that the only issue that the NCLT in IBC proceedings can look at is whether there has been a default, and nothing further. It was also held that insufficient stamping is a curable defect. The effect of insufficient stamping has attracted contradictory judgments from the NCLAT and the Supreme Court. However, Phoenix ARC follows the correct law laid down by the Supreme Court in Essar Steel .

It is to be noted that proceedings under Code are non-adversarial. Any applicant seeking to initiate corporate insolvency proceedings is required to produce documents that satisfy the Adjudicating Authority (the NCLT) proving the default committed by the corporate debtor. Such an applicant is also required to ensure that the financial contracts on which they rely are legally sound and are not truncated. While structuring true sale transactions for assignment of debt (standard assets or NPA), compliance under the applicable stamping legislations must be ensured to avoid legal complications.

Disclaimer:  The Opinions expressed in this article are that of the author(s). The facts and opinions expressed here do not reflect the views of IBC Laws ( http://www.ibclaw.in ). The entire contents of this document have been prepared on the basis of the information existing at the time of the preparation. The author(s) and IBC Laws ( http://www.ibclaw.in ) do not take responsibility of the same. Postings on this blog are for informational purposes only. Nothing herein shall be deemed or construed to constitute legal or investment advice. Discussions on, or arising out of this, blog between contributors and other persons shall not create any attorney-client relationship.

Follow for daily updates:

• < https://legislative.gov.in/sites/default/files/A1899-2.pdf > [ ↩ ]
• < https://keralaregistration.gov.in/fileUploads/The%20Kerala%20Stamp%20Act.pdf > [ ↩ ][ ↩ ]
• [2019] ibclaw.in 07 SC , para 99 [ ↩ ]