How is Stamp Duty Calculated for Commercial Properties?

Stamp duty is a state government tax paid on the sale or transfer of commercial properties. The rates and rules vary by state, but the calculation generally follows these principles:

Basis of Calculation:

Stamp duty is charged on the higher of the sale price (agreement value) or the circle rate (government’s minimum property valuation).
Rates:

Commercial property stamp duty rates are usually higher than residential rates and differ by state. For example:

• Maharashtra: Around 6% to 7%
• Delhi: Approximately 6% to 8%
• Karnataka: Around 5% to 7%
• Tamil Nadu: Around 7% to 8%

Additional Charges:

Along with stamp duty, a registration fee (typically 1% to 2% of property value) is also payable at the time of registration.

Example:

For a commercial property valued at ₹1 crore in Maharashtra with a 6% stamp duty rate and 1% registration fee:

Stamp Duty = ₹1,00,00,000 × 6% = ₹6,00,000

Registration Fee = ₹1,00,00,000 × 1% = ₹1,00,000

Total = ₹7,00,000

Key Points:

• Stamp duty must be paid before or during registration for the transaction to be legally valid.
• Rates vary by state, so check local rules.
• Penalties apply for non-payment or underpayment.

Using the correct stamp duty ensures your commercial property transaction is legally recognised and protects your ownership rights. You may use the Stamp Duty Calculator to understand stamp duty and its role in total costs for commercial properties.