WBS Rules 3

Section 3 · Manner of determination of market value and furnishing of particulars relating to any property

(1)

The market value within the meaning of clause [16(B)] of section 2 in relation to any land or any land with building shall, after taking into consideration the particulars referred to in sub rule (2), be determined on the basis of the highest price for which sale of any land or any land with building, of similar nature and area and in the same locality or in a comparable locality, has been negotiated and settled during the five consecutive years immediately proceeding the date of execution of any instrument setting forth such market value, or on the basis of any court decision after hearing the State Government, or on the basis of information, report or record that may be available from any court or any officer or authority of the Central Government or the State Government or any local authority or local body, or on the basis of consideration stated in such instrument for such land or land with building, whichever is greater.

(2)

Any person executing an instrument of agreement or memorandum of an agreement relating to a sale or lease-cum-sale of immovable property, conveyance, exchange of property, gift, partition, power-of-attorney where proper stamp duty is payable on the basis of market value, settlement, transfer of lease by way of assignment, shall furnish to the registering officer, in addition to the particulars referred to in sub-section (1) and sub-section (2) of section 27, such particulars in respect of the property as may be applicable to that property and as specified in a statement in Form I, in case the land with building is situated in an urban area, in Form II, in case the land with building is situated in a rural area, in Form III, in case the land is situated in urban area, in Form IV, in case the land is situated in rural area.

(3)

Such a statement shall be signed and verified by the person executing the instruments referred to in sub-rule (2), and presenting it before a registering officer for registration.

(4)

A statement shall, after being signed and verified as required by sub-rule (3), be annexed in duplicate, to the instrument referred to in sub-rule (2), which is, upon execution, presented before the registering officer for registration.

(5)

If an instrument referred to in sub-rule (2) relates to more than one item of property, the statement referred to in sub-rule (2) shall be furnished by the person executing such instrument for each item of property separately in Form I, Form II, Form III or Form IV, as the case may be.

(6)

If, in relation to any property which is the subject-matter of registration of any instrument referred to in sub-rule (2), the market value is not set forth therein, and if the facts and circumstances affecting the chargeability of an instrument with stamp duty and the particulars relating to such facts and circumstances are not fully and truly set forth and furnished in a statement referred to in sub-rule (3), filled in, signed and verified by the person executing the instrument in the manner referred to in sub-rule (4), the registering officer may refuse registration of such instrument after giving such person a reasonable opportunity of being heard.

(7)

On receipt of any instrument referred to in sub-rule (2) in relation to a property together with the statement in Form I, Form II, Form III or Form IV, as the case may be, annexed thereto, if the registering officer has reason to believe that the market value of the property has not been truly set forth in such instrument, he may make such enquiries and take into account such court decision, information, report or record from any court or any officer or authority of the Central Government or the State Government or any local authority or local body or any person having knowledge relating to market value of the property of similar nature and area, and situated in the same locality or in a comparable locality as he deems fit for ascertaining the market value of the property and proper stamp duty chargeable.

(8)

On the basis of enquiries, court decision, information, report or records referred to in sub-rule (7), as the case may be, the registering officer shall ascertain the market value of the property and shall pass an order in writing to that effect in Form I, Form II, Form III or Form IV, as the case may be. and if he finds that the market value of the property is more than that has been set forth in the instrument referred to in sub-rule (2), he shall keep the registration of the document in abeyance and shall issue notice in Form V communicating the person by whom the stamp duty is payable under section 29, or his authorised agent, or authorised advocate the amount which he believes to be the market value of such property and calling upon him to make payment of the deficit amount of stamp duty within the period of thirty days from the date of receipt of such notice. The registering officer shall record the particulars of such documents in Form VA.

(9)

If the person by whom the stamp duty is payable under section 29, or his authorised agent, or authorised advocate to whom the market value has been communicated under sub-rule (8), offers to pay the deficit amount of stamp duty, if any, he shall deposit it into a Government Treasury on appropriate head of Account under appropriate challan, obtainable at any office of the registering officer, or any Government Treasury, after it is countersigned by the registering officer concerned or shall pay it by a bank draft drawn on any agency bank in favour of the concerned registering officer before whom such instrument was presented for reiteration.

(10)

The challan as aforesaid shall be filled up in quadruplicate and shall contain the name and address of the person on whose behalf stamp duty is deposited and the particulars of the instrument. On deposit of the amount, the duplicate copy of the challan shall be retained by the Government Treasury, the triplicate copy shall be sent to the registering officer and the other two copies shall be returned to the depositor duly signed as proof of payment.

(11)

On receipt of the challan or bank draft, as the case may be, as proof of payment of the deficit amount of stamp duty, the registering officer shall, within ten days from the date of receipt of the said challan or bank draft, as the case may be, certify, by recording in such instrument that the proper stamp duty with which such instrument is chargeable, has been paid and register the instrument.[Provided that the provisions of sub-rule (1) to sub-rule (11) of this rule, shall not be applicable in case an instrument is registered through the system of Computerization of Registration of Documents (CORD) software.] [Proviso added Clause (2) of the Notification No. 1614-F.T., dated 5.10.2010, w.e.f. 5.10.2010.][3A. Manner of determination of market value when instrument is registered through the system of CORD. - When an instrument is registered through the system of CORD, the market value within the meaning of clause 16(B) of section 2 in relation to any land or any land with building or any flat used for residential or commercial or semi-commercial purpose, shall be determined in accordance with the provisions of rules 3B to 3E. ] [Rules 3A to 3E Inserted by Clause (3), ibid, w.e.f. 5.10.2010.]

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