If the agreement is made on the head of the company letter, is it necessary to get stamp duty on it frank? If so, what is the amount? Entry into the delivery of goods with a person and the granting of rights to sell those goods without written agreement is like an invitation problem in the future between the parties. Even on the white paper, if an agreement is executed, is valid. To admit it in court, the court will collect stamp duty and punishment, as it is not written on valid stamp paper. That is my advice, whatever terms you write on stamp paper, to avoid future quarrels. The issue of stamp duty requirements was not addressed in the interim measures. As far as the duty of the state is concerned, it generally varies from state to state. Nevertheless, there is a general pattern that is followed. Let`s take a look, for example, at the stamp duty imposed by the Karnataka government. In addition to the above documents, the Karnataka government imposes stamp duty: during the agreement on the distribution agreement, it is very important that both parties are aware of the rights and obligations arising from the agreement. In a recent supreme court decision[1], the Tribunal decided, in reviewing the arbitration clauses contained in the main transaction documents, that an application under Section 11 (for the appointment of a dispute resolution arbitrator) could only be made for the payment of stamp duty for the main transaction document.

, in accordance with the relevant provisions of the Indian Stamp Act. , 1988. The Indian Stamp Act levies stamp duty on instruments that record transactions. These are the documents on which the Union or the central government collects a stamp duty. In addition, national governments may also impose taxes on certain documents. Considering that arbitration agreements are of the utmost importance for a distribution, franchise or licensing relationship in India and, indeed, for most contractual relationships in India, the proper execution of contractual documents is essential. Notwithstanding the applicability of the above decision on requests for interim measures, it is important that any company entering into a sale or franchise or licence agreement with an Indian entity ensures that the contract dealing with the transaction is properly executed and that stamp duty is paid in accordance with Indian law and procedure in order to avoid any disputes related to a compromise clause that is included in an agreement with an unmarked clause. Under the Indian Stamp Act of 1899, stamp duty must be paid as a measure to cover and track all transactions. Therefore, stamp duty works almost as evidence of the conclusion of the agreement and that it took place.

It is a valid legal person in court as evidence in the event of a dispute. The last change to the Indian Stamp Act came in 2016 in the form of debt recovery from the 2016 Act. If you are buying a new property or selling an investment, then stamp duty is definitely something you need to know. If you don`t know all the legitimacy regarding the stamp tax and its application, don`t worry, because we`ve covered you. Here`s a look at everything you need to know about stamp duty and in which you have to pay it.