Response

As per the Indian Stamp Act, 1899, stamp duty must be paid as a measure to record and keep track of all the transactions. Therefore, stamp duty works almost like proof for the deal closure and that it has been taken place. It is a legal entity that is valid in a court of law as a piece of evidence in the case of disputes. The most recent amendment for the Indian Stamp Act came in 2016 in the form of the Recovery of Debt Laws Bill 2016. If you are buying a new property or selling an asset, then stamp duty is definitely something you should know about.

The normal stamp duty to be paid for a service agreement is as per clause 5(c) of schedule 1-A of the Indian Stamp Act applicable to Delhi i.e. Rs. 50.
But since most service agreements have an indemnity clause, the same is to be read with entry 34 of the same act, i.e. Rs 100.
100+50=150
And just to be sure that something is not left out. Kindly get stamp papers for Rs 50 extra. So it comes of to a total of Rs 150+50=200.

Hence, you will have to pay the stamp duty according to the above provisions.

Reference: Indian Stamp Act, 1899

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