B. Stamps and their use
(OF STAMPS AND THE MODE OF USING THEM)
Section 10 : Procedure for Payment of Stamp Duty :
(1) Except as may be specially provided in this Act from case to case, in the case of documents on which stamp duty is payable, the duty shall be paid in the form of stamps. The amount paid should be indicated by those stamps. In that order
(a) stamp duty shall be paid in the manner prescribed in this Act (or)
(b) In cases not specifically provided for in this Act, stamp duty shall be paid in such manner as may be prescribed by the State Government.
(2) Regulations issued under sub-section (1) shall, inter alia, relate to the following matters.
(a) No stamps to be used in respect of any documents.
(b) How many impressed stamps should be used in the case of documents using impressed stamps.
(c) in the case of bills of exchange, or promissory notes, on what size paper the documents should be written.
commentary
We know that there are many types of stamps. Therefore, this section provides instructions as to which stamps should be used on which document. However, in that order, small mistakes (irregularity in the use of stamp) may have happened. In such cases, the document does not become invalid on that ground alone. (Thiruvengalam Pillai Vs Navaneethammal and others, 2008 (4) SCC 530 = AIR 2008 SC 1541).
Section 10-A : Payment of stamp duty in cash:
(1) Notwithstanding section 10, where there is a shortage of a stamp in any district, or of a stamp of a specified value. The Collector or the Government may feel that there is a shortage. In such cases, the State Government or the Collector may allow payment of the required stamp duty in cash, or in the form of demand draft or pay order. (In Government Treasury, or Sub-Treasury, or Scheduled Bank) Treasury Officer, or Sub-Treasury Officer, or Sub-Registrar. Confirm the payment made in the above manner and endorse the payment on the relevant document.
Explanation : 'Government Treasury' includes Government Sub-Treasuries and other offices notified in this behalf by the State Government through Gazette. The powers of the State Government and the Collector under this section shall be published in the Andhra Pradesh Royal Gazette.
(2) A document endorsed as having been paid under sub-section (1) shall be deemed to have paid stamp duty within the meaning of section 10.
(3) This section shall not apply to the following cases only.
(i) for documents subject to stamp duty under entry 91 of the First List of the Seventh Schedule to the Constitution of India, (and)
(ii) the instruments presented after four months from the date of their execution or first execution.
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Commentary
Andhra Pradesh amendment of this section. came into force from 1-5-1998. At that time, the fake stamps scandal rocked the country. As a result of the fake stamps, the state government's exchequer has been badly damaged. There was a loss of crores of rupees. In such circumstances, instead of writing the documents on stamp papers, this section has been added to enable payment of stamp duty in cash at public sector banks and public treasury functions. Since this section came into force from 1-5-1998, it is applicable to Andhra Pradesh and presently also to Telangana.
Section 11: Documents on which stamps may be affixed:
Adhesive stamps can be affixed on the following documents:
(a) Documents not subject to a stamp duty of more than twenty paise (except bills of exchange drawn up in sets, bills of exchange payable on demand).
(b) bills of exchange drawn abroad and promissory notes drawn abroad,
(c) Documents relating to registration as an advocate, vakil or attorney in the High Court.
(d) Documents covered by the Notarial Act
(e) Endorsements relating to transfer of shares of any incorporated company, or other body corporate.
Commentary
Address stamps are also known as tail stamps. Smaller stamp bills can be affixed on documents that pay the lowest stamp duty. This section is also a part of austerity measures. But promissory notes written in India shall not be affixed with adhesive stamps under this Act. Only stamps marked 'Revenue' need to be affixed. Popularly known as 'Revenue Stamps', these stamp bills are available only at postal offices. Not available at Registrar's offices. This is noteworthy.
Section 12: Invalidation of Affixed Stamp Bills:
(1) (a) A person may affix stamp marks on a document. Immediately after application, they should be rendered inoperable in such a way that they cannot be reused. (... which has been ex-ecuted by any person shall, when affixing such stamp, cancel the same so that it cannot be used again) (and),
(b) When a person writes a document to which stamp-bills are affixed, the stamp-bills shall be invalidated immediately after writing, unless the stamp has already been invalidated in the manner aforesaid. (In a way that is unlikely to be used again).
(2) No stamp duty shall be deemed to have been paid on the document on which the stamp is affixed until such time as the stamp has been rendered inoperable.
(3) A person who invalidates a stamp affixed under sub-section (1) shall affix his signature on the stamp either vertically,
either by writing across (with date) or by writing on or
across the stamp his name or initials or the name or initials of his firm with true date),
Otherwise the stamp must be rendered useless.
commentary
Re-use of once used stamp means loss of government revenue. Such a possibility is more likely in case of adhesive stamp bills. To avoid such a possibility, the stamp used once should be destroyed without the possibility of re-use. This section explains how. An example of this: The postal department stamps the postage stamps we affix on the postal covers. Why?
Without reusing that stamp. The same principle applies to this Act. Affixed stamp affixed within the scope of this Act
Then the stamp should be signed by the concerned person. Then the stamp is used. to reuse
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useless Or the concerned authority, or the employee of the department, as the case may be, may put any other seal on the stamp. Can be partially torn. Or you can add chili. Or it can be dismissed. Whatever the process, the result is the same, the principle is the same. A stamp should be used only once. A stamp once used must be rendered useless in some way. That means there should be no possibility of re-use.
Section 13: Mode of Writing on Printed Stamp Papers :
In order to write documents on paper stamped with impressed stamp, the stamp should be written on the lower side so that the stamp is clearly visible. Stamps used for one document cannot be used for or applied to any other instrument.
Commentary
Sale deeds, affidavits, mortgage deeds, some other documents, contracts etc. are written on naturally printed stamp papers. This section deals with such cases. The main thing to know about this section is that it should be written only in the space below the place where the stamp is printed. Although there is no rule against writing on the reverse side of stamp paper, writing is generally not in the habit. Blank stamp documents should not be attached to any document. At least one line of the subject matter of the document should be written on each stamp paper.
Section 14: Only one deed shall be written on a stamp document :
When a document liable to stamp duty is written on a stamp document, no other document liable to stamp duty shall be written on that document.
However, only endorsements relating to the transfer of rights inherited or conferred by the said deed, or the receipt of payments in respect of money or goods, may be written on the deed. (No sec- ond instrument chargeable with duty shall be written upon a piece of stamped paper upon which an instrument chargeable with duty has already been written).
Commentary
This section can be considered as a continuation of section 13. It is a general rule that one deed should not be stamped on which another deed is written. However, ancillary items (eg. part payment etc.) of the deed can be endorsed on the same stamp paper. Accordingly, stamp duty, if any, is payable on such endorsements. If no stamp duty is required, it can be endorsed normally. At the same time, it is necessary to remember that the key and main parts of the said document should not be changed either through endorsement or in any other way (material alterations), and the problem given below in this section will not be helpful for that. For example, date of deed, interest rate, tenure, money value, change of area, change of marriage dates etc. come under major changes.
Section 15: Deeds written in contravention of sections 13 and 14 have effect:
Documents written in contravention of sections 13 and 14 shall be deemed to be documents on which stamp duty has not been paid.
Commentary
This section shows that sections 13 and 14 are the most important in relation to documents, stamp duty payable on them, etc. Deeds written contrary to the principles laid down in sections 13 and 14 are not void on that ground alone. But it is not accepted as evidence. At the same time, if the delinquency fee as prescribed under Sections 35, 40, 41, etc. of this Act has been paid, the documents shall be valid.
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comes are admissible in evidence. For example, suppose a deed is executed without payment of stamp duty in respect of an item subject to stamp duty. However, the document does not become invalid. However, the matter is disputed and the deed cannot be filed in court. On payment of prescribed stamp duty and prescribed delinquency fee, the court will accept the deed. serves as evidence.
However, the liability mentioned above does not apply in all cases. For example promissory notes, bills of exchange. If the prescribed stamp duty is not paid on the documents for which stamp duty is less than ten paise, they are permanently invalid. No matter how much delinquent fees are paid, the court will not accept them. They are documents that are permanently invalid
Section 16: Denoting of Stamp Duty:
In some cases the payment of stamp duty on one document, or exemption from payment of stamp duty may be dependent on the payment of stamp duty on another document. In such cases, the Collector should file an application in writing and submit both the relevant documents before the Collector. Then, the Collector has to endorse the stamp duty paid on the second document, denoting the first document or as prescribed by the State Government.
Commentary
'Denoting' means indicating or stating. This section applies only in certain special cases. Eg Subsidiary document under section (4), stamp duty payable on copy of document (Article 25), lease deeds (Article 31) etc. In such cases the Collector affixes a stamp or seal denoting the stamp duty paid on the original document and endorses it. This is called a 'denoting stamp' or mudra.
C. When should stamp duty be paid? (Of the time of stamping instruments)
Section 17 : Documents written in India :
When a person executes a document in India, stamp duty shall be paid before or at the time of execution. (In case of stamp duty paid documents),
But this section does not apply only to documents on which stamp duty has been paid under section 10-A.
Commentary
A big problem with the English language is that the same word can have multiple meanings depending on the context. That meaning has to be interpreted according to the context. Such is the word Execution. What is execution? Write, sign, hand over, or register? In fact, everything is correct. The interpretation and meaning varies depending on the context. In some cases a document is not complete even if the witnesses also sign it. As soon as the document is executed. In cases where registration is mandatory, execution will not be complete unless the registration process is completed. In other cases it is not enough for a person to write and keep a document. Execution is not complete unless it is delivered to the person to whom it is to be delivered. This section is also like that. All documents on which stamp duty is payable (to be executed in India) shall be stamped either before being so executed, or at the time of execution. That means stamp duty has to be paid. In a sense this section deals with the timing of payment of stamp duty. Sections 18, 19, 19-A are similar. However, as known earlier, in case of some documents, in some cases only after execution
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The Act also provides for payment of stamp duty (with or without penalty). (Sections 31, 35, 40, 41 and others contain an explanation of this exemption). The following judgment helps to give some understanding of the scope of this section.
State of Rajasthan Vs. Khandaka Jain Jewellers 2007(14) SCC 339 = AIR 2008 SC 509.
Section 18: Documents written outside India :
1) If a document liable to stamp duty (excluding bills of exchange and promissory notes) is executed out of India, stamp duty is payable on the document within three months from the date of first receipt in India. .
2) If there is any doubt as to the amount of stamp duty payable on a document under this section, the person concerned shall, within the prescribed period of three months, file the said document before the Collector. Then following the instructions of the state government, they determine how much stamp duty is payable on that document. (Where any such instrument cannot, with reference to the description of stamp prescribed therefore, be duly stamped by a private person, it may be taken within the said period of three months to the Collector, who shall stamp the same, in such manner as the (State Government) may be rule prescribe, with a stamp of such value as the person so taking such instrument may require and pay for).
Commentary
Sub-section (1) of this section is very clear. If a document written abroad is to be executed in India, the requisite stamp duty must be paid within three months from the date of entry of the document into India. Only then will the document become legal and valid. At the same time, if there is any doubt as to the amount of stamp duty payable on the document, the Collector shall indicate the amount of stamp duty payable on the document within the prescribed period of three months.
Note : District Collectors are the District Registrars in respect of the two Telugu States. Therefore, if the documents under this section are filed before the district registrar, they will determine how much stamp duty is payable.
There is some ambiguity about the scope of sub-section (2) of this section. The section is not clear as to the consequence of non-payment of stamp duty within a period of three months. But even in such cases, if the document is filed before the Collector or the District Registrar, it is known that the document can be legalized with some delinquent fee.
Section 19: Bills drawn abroad, promissory notes:
A bill of exchange (other than a bill payable on demand), or promissory note, drawn abroad
May be. The first holder of such bill of exchange, or the first holder of a promissory note, before presenting the said bill or promissory note for acceptance, or for payment, or at the time of endorsing, or before otherwise negotiating (in India) the necessary stamp 0909 . (proper stamp and cancel the same).
But-
(a) The said bill of exchange or promissory note may have come to any other holder in India. The stamp already affixed on the said bill or promissory note may be cancelled. (In Section 12
as prescribed). In such cases, the said stamp being affixed in accordance with the provisions of this Act,
deemed duly affixed and cancelled.
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(b) Notwithstanding anything contained in this proviso, a person may pay a penalty for not affixing a stamp, or for not duly canceling it. However, this provision does not provide any relief to that person.
Commentary
We know that promissory notes and bills drawn abroad are excluded from the ambit of section 18. On these the tails should be glued. Those stamps should be rendered useless immediately. This section describes who is responsible for affixing stamp bills and rendering them voidable when such promissory note or bill enters India.
Section 19-A : Payment of stamp duty on documents subject to additional stamp duty :
Except for the documents mentioned in entry 91 of the First List of the Seventh Schedule to the Constitution of India, stamp duty is payable under this Act in any part of India on other documents, but in respect of the State of Andhra Pradesh only, the stamp duty mentioned in clause (bb) of the first proviso to section (3) Stamp duty has to be paid. In that order
(1) Notwithstanding the first proviso to section (3), stamp duty shall be payable on the document in the manner mentioned in Schedule-1(a). If any stamp duty has already been paid on the document concerned, the difference between that duty and the duty payable under Schedule-1(a) shall be payable.
(ii) If stamps are already affixed on a document, such additional stamps as may be necessary pursuant to clause (i) shall be affixed. The said document, even if it has arrived in India officially, will have to pay the necessary additional stamp duty at the same time as the stamp duty is payable. (and)
(iii) Clauses (b) or (c) of the proviso to sub-section (3) of section 32 shall also apply to such documents, mutatis mutandis and additions, as the case may be. However, clause (a) of the same provision shall not apply.
Commentary
Andhra Pradesh amendment of this section. This section may seem long and confusing but the gist is short.
As mentioned earlier, the stamp duty levied under Schedule-1 on certain documents is payable to the Central Government.
belongs to State governments are given the freedom to levy stamp duty on remaining documents. Those documents
are in Schedule-1(A). That means each state has a separate Schedule-1(A). Consequently Schedule-1(a)
The stamp duty levied on the documents covered may vary from state to state. Thus the differences
There are too. Keeping such situations in mind, the Government of Andhra Pradesh added this section in 1974
included. All other state governments have followed the same path. Whatever the case of other states, our
Let us know the scope of this section with respect to the state.
For example, suppose a document falling under Schedule-1(a) is written in Tamil Nadu. Stamp duty has been paid on the document as per the rules of that state. But that document needs to be implemented in our state. Suppose the stamp duty levied in our state on that document is more than the stamp duty levied in Tamil Nadu. In such cases, execution of the document in our state will require payment of additional stamp duty to the extent of the difference between the two states. This section is helpful for such cases. If the stamp duty in our state is less than the stamp duty in Tamil Nadu regarding that document, there will be no real problem. The following judgment helps to give some understanding of the scope of this section.
- New Central Jute Mills Vs. State of West Bengal AIR 1963 SC 1307.
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d. Of Valuation for Stamp Duty
Section 20 : Conversion of Foreign Currency Value into Domestic Currency Value :
(1) If the stamp duty payable on any document is stated in any foreign currency, the stamp duty payable in Indian Rupees shall be determined at the current rate of foreign exchange.
(2) The Central Government may from time to time issue a Gazette Notification regarding the value of the Indian currency in relation to British or any other foreign currency. In such cases the stamp duty shall be fixed as per the notification in respect of sub-section (1).
Section 21 : Valuation of stock and marketable securities :
In cases where stamp duty is payable on a document based on the sale of stock or marketable securities, the stamp duty is assessed based on the average value or price of the relevant stock or securities at the time when the said document is written (on the date of instrument).
Section 22 : Assessment of stamp duty depending on foreign exchange rate-Effect:
Any document may contain a reference to the prevailing foreign exchange rate, or the average value of the stock or securities, and stamp duty may have been paid accordingly. In such cases the stamp duty is deemed to have been duly paid.
Section 23 : Stamp duty on documents containing reference to interest :
Some documents may specifically mention the payment of interest. In such cases, stamp duty is payable on the entire amount of the document, treating it as if there is no mention of interest in the document.
Commentary
A small example to understand this section. A mortgage deed for twenty five thousand rupees
was written. The deed also stated that 24 percent interest was to be paid on the amount. However, stamp duty is payable on Rs twenty five thousand without taking into account the interest.
Section 23-A : Stamp duty on documents relating to mortgages of market or securities :
(1) In certain cases (other than promissory note, or bill of exchange)—
(a) An agreement may be entered into in connection with any borrowing, or in relation to a future borrowing, or in respect of a past borrowing, by pledging any marketable security as security for the payment of that loan. (or)
(b) a document qualifying a marketable security may be written (makes redeemable or qualifies a duly stamped transfer, intended as a security, of any marketable security).
Such document or document shall be treated as an agreement or memorandum of agreement (under Article 5(c) of Schedule-1, or Article 5(c) of Schedule-1(a) as the case may be) and stamp duty shall be levied accordingly.
(2) In cases of release or discharge of the said document, stamp duty will be levied in the same manner as above.
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Section 24 : Stamp duty in case of transfer of property as part of discharge of debt, etc. :
A property may be transferred as a consideration, either in whole or in part, in payment of any debt. (or) in respect of the transfer or payment of any money or stock (whether such payment may be specific or indeterminate) in consideration of which property may be transferred. In such cases the consideration, or the market value of the property transferred, whichever is higher, will normally be subject to stamp duty. (Where any property is transferred to any person in consideration, wholly or in part, of any debt due to him, or subject either certainly or contingently to the payment or transfer of any money or stock, whether being or constituting a charge or encumbrance upon the property or not, such debt, money or stock is to be deemed the whole or part, as the case may be, of the consideration).
However, this section shall not apply only to sale certificates covered by Article 18 of Schedule-1, or Article 16 of Schedule-1(a).
Explanation: When a property is sold subject to a partially unpaid mortgage arrears, or payment of arrears on the said mortgage, only the unpaid mortgage arrears shall be treated as sale proceeds. (In the case of sale of property subject to a mortgage, or other incumbrance, any unpaid mortgage-money or money charged, together with the interest (if any) due on the same, shall be deemed to be part of the consideration for the sale).
However, in cases where the mortgaged property is transferred to the mortgagor, the remaining stamp duty is liable to be paid excluding the stamp duty paid when the property was mortgaged.
Commentary
This section describes the stamp duty payable on the sale deed in cases where a mortgagee, in default of the mortgage, sells the property to the mortgagor or to another person in return.
Section 25: Stamp duty on transfer of annual allowance:
To secure payment of an annuity, or other sum payable periodically, a document may be written. Or it may be an annual remuneration in respect of the said transaction. (consideration for conveyance is an annuity). Or the reward may be a lump sum paid over a fixed period of time. When a document is drawn up in respect of such cases the stamp duty on the document is fixed as per the case as under
(a) the amount is payable for a specified period and the amount ultimately payable is assessable;
In cases, stamp duty is payable on the said amount. (b) in the case of a deed or documents written so as to continue after the life of a person without a specified time limit, (with that specified time limit) payable within a period of 20 years from the date of first payment;
The amount is subject to standard stamp duty.
(c) in the case of deeds written in such a way that payment is made during the lifetime of a person (being that person's lifetime
Indefinite), the amount payable over a period of 12 years from the date of first payment is standard
Stamp duty is payable.
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Section 26 : Stamp duty in cases where it is not possible to ascertain the value of the contents of the document :
In some cases, at the time a document is written, it may not be possible to ascertain the amount, or value, of the items mentioned in that document. (In the case of documents written before the coming into force of this Act, it may not be possible to confirm the sale in this manner). In such cases the person writing the document may pay stamp duty on the amount deemed exempt by him. However, when the matter is in dispute, there is no possibility of claiming more amount than the amount of stamp duty paid.
At the same time, in the case of lease of a mine, where royalty or some share of the produce is received as rent, the stamp duty is determined as follows.
(a) In cases of lease by the Government, the Collector shall ascertain the total value of the royalty or share due to the Government, as the case may be. Stamp duty has to be paid on the said amount. (or)
(b) In cases of lease to any other person, the rent shall be fixed at twenty thousand rupees per annum and stamp duty shall be paid on the said amount.
In the above cases where the tenancy is disputed there is an opportunity to claim the amount mentioned above.
At the same time, in cases where action is taken under sections 31. or 41 in respect of any document, the amount certified by the Collector shall be deemed to be the standard and stamp duty on such amount shall be deemed to have been paid.
Commentary
This section applies to lease agreements where the value is indefinite, vague, speculative and impossible to ascertain. In normal circumstances, the person who wrote the document can assess (estimate) the value of the item mentioned in the document and pay stamp duty on that value. However, when the matter is later disputed, he cannot claim more than the assessed value. In other words, this provision applies to cases where a document is shown at a value lower than the actual value to evade stamp duty and with the intention of making an illegal profit. This is a part of this section.
The second part of this section deals with lease of mines. Generally all the mines are under the government. Thus, when a mine is leased out, the Collector assesses and determines how much profit will accrue to the lessee. Stamp duty can be paid on that amount. In cases where mines are leased out to non-Government persons, the annual income is confirmed to be twenty thousand and stamp duty has to be paid. Sections 31, 41 are related to this section. Therefore, it is necessary to consider those two sections in the case of lease of mines.
Section 27: All matters affecting stamp duty shall be included in the document:
If there is consideration, all matters affecting stamp duty, including the market value of the property, should be fully and factually stated in the document.
At the same time the registration officer appointed under the Registration Act or any other officer authorized by him may inspect the property mentioned in the document. Investigation can be conducted locally. All the relevant records should be brought and studied and satisfied that the said document conforms to the provisions of this section.
Commentary
This section provides that the registration officer can examine whether the stamp duty has been paid in accordance with this Act at the time of registration of the documents required to be registered. But who cares whether the stamp duty has been duly paid or not in the case of documents that do not require registration
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Will examine. There is no answer to that either in this section or in this law. But when a document on which stamp duty is payable is disputed, or for any other reason, at the time of receiving the said document in evidence, the Court shall have that option. If the court notices that stamp duty has not actually been paid on a document to be admitted in evidence, or that stamp duty has been paid less than what is due, the court may, as the case may be, levy the prescribed delinquency fee in addition to the stamp duty due. This point is significant in understanding the scope of this section. The following judgment helps to give some understanding of the scope of this section.
Duncan Industries Ltd., Vs. State of U.P. 2000(1) SCC 633-AIR 2000 SC 355.
Section 28 : Stamp duty in case of certain special transfers :
(1) An agreement may be made as to the sale consideration of an asset. But the said property is different, not lump sum
It may be transferred to the buyer in parts, through different documents. In such cases
The reward, among the different documents, is apportioned (ap-
portioned in such manner as the parties think fit).
At the same time, the value of the property mentioned in the respective separate deeds, or the consideration, whichever is higher, shall be leviable of stamp duty. (separately on each document).
(2) A contract may be entered into by two or more persons jointly, or by one person, on his own behalf and on behalf of others, or for others. The net consideration of the property (one consideration for the whole) may also be mentioned in the agreement. Such property may have been sold to different persons by different documents, in parts. The consideration of the property mentioned in each document may also be specifically mentioned. In such cases stamp duty is normally levied on the consideration mentioned in the document or the market value of the share whichever is higher.
(3) A person may enter into an agreement of sale in respect of the purchase of an asset. However, the person may have entered into an agreement to sell the property to someone else instead of buying it. Accordingly the property may have been sold to the second person. In such cases, stamp duty is normally levied on the consideration that the second person agreed to buy from the first person or the market value of the property, whichever is higher.
(4) A person may enter into an agreement of sale in relation to the purchase of an asset. But the person may, without purchasing the property, enter into an agreement with another person or persons to sell the same property either as a lump sum or in smaller parts. Accordingly the property in question may have been sold in several parts, to several persons through different deeds. In such cases the sale consideration mentioned in the said documents, or the market value of the property mentioned in the document whichever is higher, stamp duty is levied as standard. In cases where, having been so sold separately, some property remains and the portion is sold to the original contractee, the difference between the average consideration paid under the various deeds, the total consideration in the first contract, or the market value of the remaining property, whichever is greater, is levied as standard.
However, the stamp duty so levied shall not be less than five rupees.
(5) An interest in a property may be transferred to a person, to his immediate seller. I received it
The person shall pay stamp duty on the basis of the consideration received or the market value of the property whichever is higher.
may have paid. Thereafter, the original seller of the same property deeded the said property to that person
May have changed. In such cases a stamp equal to the consideration received by the original seller
duty, or if the said stamp duty exceeds fifteen rupees, fifteen rupees
Stamp duty is payable. (Where a sub-purchaser takes an actual conveyance of
the interest of the person immmediately selling to him, which is chargeable with ad valorem
duty in respect of the consideration paid by him or the market value of the property, which
30 Karadeepika
is the subject matter of the conveyance, whichever is higher and is duly stamped accordingly, any conveyance to be afterwards made to him of the same property by the original seller shall be chargeable with a duty equal to that which whould be chargeable on a conveyanace for the consideration obtained by such original seller, or the market value of such property whichever is higher or, where, such duty would exceed (fifteen) rupees, with a duty of (fifteen) rupees).
Commentary
Real estate brokers etc., first enter into a sale agreement for a property. However, after that, instead of buying the property themselves, they sell the same property to someone else. This means that the owner of the property registers the property in the name of another person mentioned by him, not the person who entered into the agreement before. That is, in a sense, there is such an arrangement to avoid incurring double stamp duty and double registration expenses. This section applies to such cases. It is advisable to seek expert advice regarding stamp duty under this section, particularly stamp duty under sub-section (5). Because this section can be a bit confusing.
e. Who has to pay the stamp duty?
(E. Duty by whom payable?)
Section 29 : Who shall pay stamp duty?:
In cases where there is no specific agreement regarding payment of stamp duty, the following persons are liable to pay stamp duty. (as the case may be) :
(a) the articles in Schedule-1(a) referred to below in relation to the items, or
The following types of documents are mentioned under corresponding articles in schedule-1(A):
Stamp duty on documents by the person drawing, making or executing such instrument (by the person drawing, making or executing such instrument) 3
Article 2 : Administration Bond
Article - 6 5 Agreement relating to deposit of title deeds, pawn or pledge.
Article 13 : Bill of Exchange
Article – 15
Article 16 : Botamary Bond
Article 26 : Customs Bond
16 - 27 : Debentures
- 32: Further charge
Article 34 : Indemnity Bond
16 - 40
- 49
: Mortgage Deed
: Promissory note
Article- 55
: release
Article - 56 : 5 5 (respondentia bond)
16 57 : Security bond, or mortgage deed
16 - 58 : Settlement (Records)
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Article- 62(a); Transfer of shares in an incorporated company, or any other corporate body
Article- 62(b) Transfer of debentures, marketable securities other than debentures referred to in section (8) (although no stamp duty is payable on such debentures)
Article 62(c): Transfer of benefit accruing from any bond, or mortgage deed, or deed policy.
Note : The article numbers mentioned above are in Schedule - 1. Schedule-1(a) also mentions the items in those articles. But article numbers will change. Readers will notice.
(b) In case of fire insurance policies, the person effecting insurance shall pay stamp duty.
(c) In respect of documents relating to transfer or transfer (including documents relating to re-allocation of mortgaged property) stamp duty shall be payable by the grantee. In the case of documents relating to leases or lease agreements, the lessee or intended lessee is liable to pay stamp duty.
(d) Lessor shall pay stamp duty in case of copy or copy of lease.
(e) In case of instruments of exchange, stamp duty shall be borne equally by all parties concerned.
(f) In case of certificate of sale, stamp duty shall be paid by the purchaser of the property concerned. g) In case of part distribution deeds all the parties concerned shall pay stamp duty according to their respective shares (
have to pay. At the same time, in cases of partial distribution following a judgment or order of a revenue authority or a civil court or an arbitrator, the parties concerned are liable to pay stamp duty following the said judgment or order.
Section 30: Circumstances in which receipt must be given:
A person who has received an amount exceeding twenty rupees, or a person who has received a promissory note, bill of exchange or check of a value exceeding twenty rupees, or a person who has received part satisfaction of more than twenty rupees, or a person who has received chattels of a value exceeding twenty rupees, who has paid If asked by the person, or the person who surrenders the bill, or check or promissory note, a receipt with a stamp of sufficient value shall be given in proof thereof.
A person who receives a credit in respect of any premium, or a consideration in respect of an extension of a contract of fire insurance, must furnish a receipt with a stamp of sufficient value within a month from the date of such credit or the date of receipt of the consideration.
Commentary
In cases where the first paragraph of this section applies, the giving of Isidu is not mandatory. If you ask, you have to give the receipt. And the major flaw in this section is that it does not specify the stamp duty to be affixed on the receipt. This section does not specify the amount of stamp duty except what is stated to be a stamp of sufficient value. However, Article 58 of Schedule-1 states that if the value of the money received or the value of the property exceeds five thousand rupees, stamp duty worth one rupee shall be payable (on the receipt). There is no article on this subject in Schedule-1(A) for our state. Therefore, it can be assumed that Article 53 of Schedule-1 applies to our state as usual. The last thing to know about this section is that failure to give a receipt is an offense punishable under sections 62 and 66.
32 Karadeepika
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