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Article 5 General Agreement Stamp Duty – Lashing Beauty

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Article 5 of the General Agreement on Stamp Duty is one of the most important aspects of the agreement that governs the taxation of legal documents in India. The agreement was signed in 1956 and has since undergone numerous amendments to reflect the changing legal landscape in the country. In this article, we will explore the key features of Article 5 and its impact on the Indian legal system.

Article 5 of the General Agreement on Stamp Duty deals with the determination of the proper stamp duty payable on legal documents. It identifies the factors that are taken into consideration when calculating the stamp duty, which include the nature of the document, the value of the property involved in the transaction, and the location where the document is executed.

The article also sets out the procedure for determining the stamp duty payable, which involves a valuation of the property or consideration involved in the transaction and the application of a prescribed rate of stamp duty. The valuation is carried out by a government-appointed valuer, who determines the fair market value of the property or consideration involved in the transaction.

One of the key benefits of Article 5 is that it provides a uniform approach to stamp duty across the country. This helps to avoid confusion and inconsistency in stamp duty rates, which can be a significant barrier to conducting business across different states and territories in India. By providing a clear framework for the calculation and payment of stamp duty, Article 5 helps to promote certainty and transparency in the legal system.

Another important feature of Article 5 is that it allows for exemptions and rebates in certain circumstances. For example, documents executed in connection with certain types of transactions, such as mortgages and leases, may be eligible for a reduced rate of stamp duty. Similarly, certain types of transactions, such as those involving transfer of property between family members, may be exempt from stamp duty altogether.

Overall, Article 5 of the General Agreement on Stamp Duty is an essential component of the Indian legal system. It provides a clear framework for the calculation and payment of stamp duty, promotes consistency and transparency across the country, and allows for exemptions and rebates in appropriate circumstances. As a professional, it is important to understand the significance of this article for Indian businesses and legal practitioners alike.