This statement was inserted effective on November 15 by the M.P. Act 19 of 1989, 1989.By reason for this provision, so that a legal fiction was created. As a general rule, a sale agreement would not be subject to the payment of stamp duty due for a deed of sale, but in view of the purpose and property, it is intended to reach the legislator who has deemed it necessary to levy stamp duty on a deed of transfer of ownership. It should be noted that a business transfer contract cannot allow the parties to consider a transfer, but may encourage the parties to make a transfer request. In the case of Avinash Kumar Chauhan/Vijay Krishna Mishra, the Supreme Court made it clear that the sale agreement is not subject to the payment of stamp duty due on a sales file. It says that the value of the stamp tax will be printed on stamp paper or electronic stamp paper after the payment of the prescribed tax. Stamp documents have different stamp values and any type of document/document must be executed on a stamp paper of a required value. The value of the stamp varies from region to region and depending on the value of the deed or transaction executed. Here it is important to note that the sale can be done in two ways, one is a business sale and the other is a sale of assets. The type of sale determines which positions of the company should be part of the transfer of ownership. A buyer benefits from a sale of assets by making use of the amortization benefits at an early stage and avoiding the acquisition of the liabilities of the former business. However, from a seller`s perspective, the sale of a business is preferable to pay taxes at a low long-term capital rate compared to the higher normal tax rate applicable to the sale of assets.
“The provisions of Section 3 of Chapter II make flight plans attached to the act mandatory and, in reference to other provisions such as Sections 4 to 6, which impose taxes, emphasizes that Parliament`s intention to collect taxes on transactions cannot be the intention of parliament. There is a clear distinction between men`s legal affairs, which can be taken into account insofar as transactions with legal effects can be carried out without the need for formal registration in the form of documents or instruments. Sometimes instruments can pass on legal rights and sometimes without them. Instruments can only be registered and executed in the context of transactions concluded and, in the same way, instruments or documents can be created to create rights and obligations in the future. These may be enforceable and enforceable acts that may take the formal form of agreements or may be highlighted by the documents implemented between the parties. The issue in each case of application of the provisions of the statute of tax, such as the stamp law, is a question of fact that must be determined taking into account all the relevant circumstances, the nature of the transaction and its legal effect, always based, if in doubt, on favouring the subject through tax law. In Gujarat: How much can a rental contract be written on stamp paper? Similarly, Article 5, Point g) of the Act imposes stamp duty due for an agreement to sell personal property. If the possession of personal property is delivered or agreed without the execution of a deed of transport, the stamp duty provided for by this agreement is 3% (3%) the counterparty or market value of the property, depending on the higher value.