Hi i am a NRI, foreign passport and OCI holder. I will be initiating a POA to my brother-in-law (strictly between me and bow in law) for purchase of flat in Mumbai. I will be getting the POA notarized by local notary in US (per Indian Embassy local rules) and attested by Indian Embassy in US. I understand that POA further needs to be registered with sub registrar in Mumbai. But what I want to know that if I need to pay a Stamp Duty of 5% to get it registered or getting the notary registered or notarized on a Rs.500 Stamp Paper would suffice? When does the stamp duty of 5% applies per law? Thanks, Nitin
If POA is in favour of family member then it has to be on stamp paper of Rs 500 only .
2) it is sufficient if attested before Indian consulate
3) registration is not necessary
4) if executed in favour of non family member then it would attract stamp duty at 5 per cent ie same as conveyance
5) better execute POA in favour of parents or your siblings and not in favour of brother in law
1. So in my case you are saying Stamp Duty of 5% do
Is there a published state/legal government document or website that you can refer me to that confirms that stamp duty of 5% is not applicable or not required when power of attorney is given to a close relative such as brother in law and that registration of POA at subregistrar is not required and/or is optional when POA has been attested from Foreign based Indian Embassy. I am asking this because I have been given some conflicting answers on these questions by legal experts. Hence I want to be absolutely sure. Thank you for your input.
Stamp duty of 5% is to pay if POA is given for consideration, otherwise stamp duty around Rs. 100. It varies from state to state. So please confirm the amount from concerned Registry office.
POA needs to be authenticated not necessarily be registered.
Authentication, in case the principal does not reside in India, may be done by a Notary or any Court , Judge, Magistrate, Indian Consul or Vice Consul or representative of the Central Government.
In your case stamp duty of 5 per cent would be leviable
check provisions of Maharashtra stamp act regarding POA
POA is given for purchase and NOT for sale of any property
Hence POA is not required to be stamped for 5% stamp duty nor is it required to be registered with Sub Registrar
Stamp duty and registration applies when POA contains a power to sell clause
The POA executed by you in the foreign country duly attested shall be adjudicated by the concerned registrar in India and the stamp duty would be a minimal amount.
There's no chance for charging 5% towards stamp duty for adjudicating the power of attorney deed.
The stamp duty shall be applicable only for registering the sale deed.
May be the stamp duty payable at the rate would have a reference to the execution of registered sale deed.
The power of attorney deed executed in a foreign country and duly attested as per law need not be registered in India however it has to be adjudicated by the sub registrar concerned within whose jurisdiction this property falls.
This is provision of law, hence don't get confused over conflicting answers, you can talk to an advocate of this forum directly for clarifying any other doubts.
1. ONLY a proper Stamp Duty paid (500/-) and Registered POA holder is entitled to execute any immovable property transaction before the local registrar of sub-assurances. Online POA Registration facility is not available, as yet. IF the POA is not registered, THEN the whole proceedings shall remain illegal. POA can be given to "ANYBODY", irrespective of relationships. Stamp Duty on POA is not the same as Stamp Duty paid on Sale /Purchase Deed.
2. POA may have strategic clauses and time limitations of the deal (payment terms, validity time period of the POA document ....), for safety of the POA giver.
3. POA can be registered "ANYWHERE" in India, before the local registrar of sub-assurances and shall be valid throughout India. Stamp Duty on POA is not the same as Stamp Duty paid on Sale /Purchase Deed. A Notarized POA is legally infructuous for immovable properties.
4. POA document can be endorsed abroad by the local consulate office and SUBSEQUENTLY stamp duty paid and registered in India, for it to be legally enforceable.
5. IF person CANNOT go to Registrar office to register POA, THEN Registrar's officer can be requisitioned to visit home, to register POA, on payment of due fees by following due procedure of law.
6. As per a SC judgment, "Immovable Property" CANNOT be sold using a GPA and such GPA and Sale shall remain legally null & void.
Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com
Hi, Notarized Power of Attorney will not accept, you need to registered before the Sub-Registrar, and need to pay the 5 % Stamp duty on the market value of the property.
Brother in law is not a blood relative for seeking stamp duty exemption
stamp duty is state subject varies from state to state
