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Kaagazaat

Contractor Final Bill and No-Claim Letter

At a glance

Price
Free
Stamp duty
A receipt for payment of Rs 5,000 or more must bear a revenue stamp of Re 1 under Article 53, Schedule I of the Indian Stamp Act, 1899, affixed and signed across by the Contractor on receiving the final payment in cash or by an instrument other than by way of a bank transfer that already carries its own proof of payment — banks and counters may still ask for it out of habit even for a bank transfer; confirm current practice with the stamp vendor or bank if in doubt.
Registration
Not registrable — it settles an account and creates no interest in immovable property.
Witnesses
Not legally required.

Free

Documents are free. Only kits are paid.

Guided questions, full draft on screen, download in Word.

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Also called

  • final bill and no dues certificate
  • full and final settlement letter construction
  • no claim certificate contractor
  • thekedar da final bill
  • ਠੇਕੇਦਾਰ ਦਾ ਅੰਤਿਮ ਬਿੱਲ
  • contractor no dues letter
  • final settlement construction contract

When you need it

A construction, labour or interior job is finished and the last payment is being made. This records the final bill — original contract value, any extra/variation work, amount already paid, and the closing balance — and, once that balance is paid, the contractor's written confirmation that it has no further claim against the owner for that job.

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Use this alongside the Defect Notice to Contractor if a defect is later found — signing this letter does not itself waive the defect-liability period already promised in the construction contract, unless you say so expressly below.

Whether you can fill this in here

You can fill this in here

You can fill this one in on this site, and read the whole draft on screen before you decide anything about it. It is a carefully drafted template; it is not advice about your own facts.

Fill this one in
See stamp duty, registration and witnesses

What follows is written for Punjab and Chandigarh. It states the position there rather than describing how it varies, so the amounts below are the ones that apply — worth confirming at the sub-registrar’s office, because rates change. If the property is anywhere else in India, none of this is yours.

Stamp duty

A receipt for payment of Rs 5,000 or more must bear a revenue stamp of Re 1 under Article 53, Schedule I of the Indian Stamp Act, 1899, affixed and signed across by the Contractor on receiving the final payment in cash or by an instrument other than by way of a bank transfer that already carries its own proof of payment — banks and counters may still ask for it out of habit even for a bank transfer; confirm current practice with the stamp vendor or bank if in doubt. Beyond that, this letter is not otherwise chargeable as a separate instrument.

Registration

Not registrable — it settles an account and creates no interest in immovable property.

Notarisation

Not legally required.

Witnesses

Not legally required.

Request Stamp Paper

Sample preview — placeholder answers, not your data

FINAL BILL AND NO-CLAIM LETTER

Date: 1 April 2026
Place: Mohali

Project: House construction at Plot No. 118, Sector 70, Mohali, under contract dated 4 January 2026

FINAL ACCOUNT
ParticularAmount
Original contract value₹32,00,000 (Rupees Thirty Two Lakh only)
Extra/variation work (Additional boundary wall and a store room not in the original scope)₹1,80,000 (Rupees One Lakh Eighty Thousand only)
Total amount billed₹33,20,000 (Rupees Thirty Three Lakh Twenty Thousand only)
Already paid before this final payment₹31,20,000 (Rupees Thirty One Lakh Twenty Thousand only)
Final payment now made₹2,00,000 (Rupees Two Lakh only)

Mode of final payment: NEFT transfer to the Contractor’s bank account

NO-CLAIM DECLARATION

I/We, Balwinder Singh, Sai Construction Co., of SCO 44, Phase 3B2, Mohali, having carried out the work referred to above for Ramandeep Singh, of House No. 214, Sector 70, Mohali, hereby acknowledge receipt of the final payment of ₹2,00,000 (Rupees Two Lakh only) stated above, in full and final settlement of all amounts due to me/us for the work.

I/We confirm that, on receipt of this final payment, I/we have no further claim, demand or dispute of any kind against the Owner in connection with the work referred to above, whether for the contract price, extra or variation work, retention, interest or otherwise.

The defect liability period already agreed in the construction contract continues to apply and is not affected by this letter

Received with thanks.

CONTRACTOR

_________________
Balwinder Singh, Sai Construction Co.

Acknowledged by the Owner:

OWNER

_________________
Ramandeep Singh

What this document is for

A homeowner and a contractor sign this when a construction, labour or interior job is finished and the last payment is being made. It lays out the final account — the original contract value, any extra or variation work, what has already been paid, and the closing balance — and then records the Contractor's written confirmation that, once that balance is paid, there is no further claim against the Owner for that job.

It closes the account between Owner and Contractor. It does not, by itself, confirm the Contractor has cleared wages owed to its own workers or amounts owed to material suppliers — those are separate obligations the Owner should ask about before treating the whole project as closed.

Before you sign this — it settles the account, not the defect liability period

Signing a no-claim letter does not, on its own, end whatever defect liability or warranty period was already promised in the underlying construction or interior contract — the template asks you to choose expressly, and the safer default choice is to say that period continues. Do not let this letter be used to sign away a defect liability period that has not actually run yet.

Stamp paper and registration

Stamp paper needed

Depends

Typical stamp duty — Punjab

Ask us — The one figure the template states with confidence is the Re 1 revenue stamp required under Article 53, Schedule I of the Indian Stamp Act, 1899, on a receipt of Rs 5,000 or more paid other than by a bank transfer that already carries its own proof of payment. Beyond that, this letter is not separately chargeable as an agreement — but banks and counters sometimes ask for the revenue stamp out of habit even on a bank transfer, so confirm current local practice with whoever is asking for it.

Typical stamp duty — Chandigarh

Ask us — The same Article 53 revenue-stamp reasoning applies; Chandigarh does not have a separate figure of its own for this kind of receipt beyond the same all-India stamp rule.

Registration at the Sub-Registrar

No — Not registrable — it settles an account between two private parties and creates no interest in immovable property, so section 17 of the Registration Act, 1908 does not apply.

Notary or witnesses

Not legally required. No witness is asked for by the template, though either party may add one for their own comfort given the value typically involved.

What you will need before you start

  • The original contract or work order this final bill is closing out, and its stated value
  • A clear list of any extra or variation work, with its own agreed value
  • A record of everything already paid before this final payment
  • A decision on whether the defect liability period already promised should continue — the safer default is yes
  • Confirmation the Contractor has cleared its own workers' wages and any material-supplier dues for this job, if that matters to you

Common mistakes

  • Signing away the defect liability period by accident, by choosing the wrong option in this letter when a defect might still appear.
  • Making this letter a condition of releasing a payment that is already due, which weakens its evidentiary value if the Contractor later claims it was signed under pressure.
  • Treating this letter as proof the Contractor has paid its own workers and suppliers, when it only settles the account between Owner and Contractor.

Questions people ask before using this document

Does signing this no-claim letter end our defect liability period?

Not unless you say so. The template asks you to choose expressly between the defect liability period continuing to run, or the Parties agreeing it has already closed. If a defect might still turn up, choose the option that keeps the defect liability period alive rather than the one that closes it.

Can a no-claim letter be challenged later if the contractor felt pressured to sign it?

Courts have in some circumstances looked behind a no-claim or no-dues certificate obtained by withholding payment until it is signed. The cleanest practice is to pay first, or at the same time as signing, rather than making the letter a precondition to a payment that is otherwise already due.

Do we need a revenue stamp on this letter?

A receipt of Rs 5,000 or more, paid other than by a bank transfer that already carries its own proof of payment, needs a Re 1 revenue stamp affixed and signed across by the Contractor under Article 53, Schedule I of the Indian Stamp Act, 1899. Some banks and counters ask for it even on a bank transfer out of habit — check current local practice rather than assuming either way.

If we sign this, are we also protected from a claim by the contractor's own workers or suppliers?

No — this letter settles the account between the Owner and the Contractor only. It does not itself confirm the Contractor has paid its own workers' wages or its material suppliers for this job. Ask for that confirmation separately if you want real assurance the project is fully closed on every side.

What if GST was charged on the original contract — does that affect this letter?

Keep the figures in this letter consistent with the Contractor's own GST invoices for the original contract and any extra work — a final bill that does not match the Contractor's tax filings can create its own complications later, quite separately from whether the Owner and Contractor agree on the underlying amount.

Related documents, and when you would need them

Questions about this document

Does the Contractor Final Bill and No-Claim Letter need stamp paper or stamp duty in Punjab and Chandigarh?

A receipt for payment of Rs 5,000 or more must bear a revenue stamp of Re 1 under Article 53, Schedule I of the Indian Stamp Act, 1899, affixed and signed across by the Contractor on receiving the final payment in cash or by an instrument other than by way of a bank transfer that already carries its own proof of payment — banks and counters may still ask for it out of habit even for a bank transfer; confirm current practice with the stamp vendor or bank if in doubt.

See the full position on stamp duty, registration and witnesses
Does the Contractor Final Bill and No-Claim Letter need registration in Punjab and Chandigarh?

Not registrable — it settles an account and creates no interest in immovable property.

See the full position on stamp duty, registration and witnesses
What does the Contractor Final Bill and No-Claim Letter cost on Kaagazaat?

Free.

Documents are free. Only kits are paid.

Does the Contractor Final Bill and No-Claim Letter need witnesses?

Not legally required.

See the full position on stamp duty, registration and witnesses

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