GOVERNMENT OF INDIA RULES
UNDER THE STAMP ACT
(Finance Department
Notification No. C-63-Stamps-25, Dated 5th May, 1925)
RULES UNDER THE INDIAN STAMP
Act, 1899
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PRELIMINARY
1. Short title- These rules may be called
the Indian stamp Rules, 1925.
2. Definition- In these rules-
(a)
‘The Act’ means the Indian Stamp
Act 1899 (II of 1899).
(b)
‘Section’ means a section of the
Act.
(c)
‘Schedule’ means a schedule of
the Act.
(d) ‘Superintendent
of Stamps’ means the Superintendent of Stamps, Madras, Bombay, Karachi, Rangoon
or Nagpur, and includes the Financial Commissioner, Punjab, and any other
Officer appointed by the Local Government to perform the functions of a
Superintendent of stamps.
3. Description of Stamps- (1) Except
as otherwise provided by the Act or by these rules-
(i)
all duties with which any
instrument is chargeable shall be paid, and such payment shall be indicated on
such instrument, by means of stamps issued by Government for the purposes of
the Act, and
(ii) a stamp which by any word or words on the face of it is
appropriated to any particular kind of instrument, shall not be used for an
instrument of any other kind.
Note to clause
(ii)-A draft drawn
by a firm in Bombay on a bank in Amritsar cannot be stamped with the Foreign
Bill Stamp. See note to rule 17.
(2) There shall be two kinds of stamps for
indicating the payment of duty with which instruments are chargeable namely-
(a)
impressed stamps, and
(b)
adhesive stamps.
OF IMPRESSED STAMPS
4. (1) Hundis- Hundis, other than hundis
which may be stamped with an adhesive stamp under section 11, shall be written
on papers as follows, namely:
(a)
A hundi payable otherwise than on
demand, but not at more than one year after date or sight and for an amount not
exceeding rupees thirty thousand in value, shall be written on paper on which a
stamp of the proper value bearing the word ‘hundi’ has been engraved or
embossed.
(b)
A hundi for an amount exceeding
rupees thirty thousand in value, or payable at more than one year after date or
sight, shall be written on paper supplied for sale by the Government to which a
label has been affixed by the Collector* of stamp Revenue, Calcutta or a
Superintendent of stamps, and impressed by such officer in the manner
prescribed by rule 11.
(2) Every
sheet of paper on which a hundi is written shall be not less than 85/8
inches long and 51/8 inches wide, and no plain paper shall be joined
thereto.
(3) The
provisions of sub section (1) of rule 7 shall apply in the case of hundis.
Note- Hundi stamps should not be used for any
documents except Hundis under this rule, and for promissory notes and bills of
exchange other than those provided for by section 11 of the Act, or by
rules 13 and 17 (see rule 5). No plain
paper should be joined to an impressed sheet bearing the word ‘Hundi’. Clause 3
should be noted carefully.
*Government of India,
Finance (C.R) 13, dated 20th May 1926.
5. Promissory notes and bills of exchange-A promissory note or bill of exchange shall, except
as provided by section 11 or by rules 13 and 17, be written on paper on which a
stamp of the proper value, with or without the word ‘hundi’ has been engraved
or embossed.
6. Other instruments- Every
other instrument chargeable with duty shall, except as provided by section 11
or by rules* 10, 12 and 13, be written on paper on which a stamp of the proper
value, not bearing the word ‘hundi’ has been engraved or embossed.
7. Provision where single sheet of paper is insufficient-(1) Where two or more sheets of paper on which stamps
are engraved or embossed are used to make up the amount of duty chargeable in
respect of any instrument, a portion of such instrument shall be written on
each sheet so used.
(2) Where
a single sheet of paper, not being paper bearing an impressed hundi stamp, is
insufficient to admit of the entire instrument being written on the side of the
paper which bears the stamps, so much plain paper may be sub joined thereto as
may be necessary for the complete writing of such instrument:
Provided
that in every such case a substantial part of the instrument shall be written
on the sheet which bears the stamp before any part is written on the plain
paper subjoined.
**8. One anna and two annas impressed stamps- The duty on any instrument which is chargeable with
a duty of one anna under the Act or of two annas under articles 5, 19, 36, 37,
43, 49 and 52 of Schedule-I may be
denoted by a coloured impression marked on a skeleton form of such instrument
by the Collector** of Stamp Revenue at Calcutta or the Superintendent of
Stamps.
**9. The Proper Officer- The
officers specified in Appendix-I and any officer appointed in this behalf by
the Local Government of a Governor’s Province, are empowered to affix and
impress or perforate** labels, and each of them shall be deemed to be ‘the
proper officer’ for the purposes of the Act and of these rules.
*Government of India,
Finance (C.R) 13, dated 15th October 1927.
**(Government of India,
Finance Department (Central Revenues) Notification Stamp No. 13 dated 20th
May 1926).
**See note to rule 11.
10. Affixing and impressing of labels by proper officer permissible
in certain cases- Labels may be affixed and
impressed or perforated* by the proper officer in the case of any of the
following instruments, namely:
*(Government of India,
Finance Department (Central Revenues), notification No. 13 dated the 20th May 1926)
(i) those
specified in Appendix II, and the counter parts thereof other than instruments
on which the duty is less than two annas; and
(ii) Those specified in Appendix III, when written in any European
language, and accompanied, if the language is not English, by a translation in
English:
Provided that the Location Government may direct
that this rule shall apply, subject to any conditions, which it may prescribe,
to agreements or memoranda of agreements such as are specified in Appendix III,
when written in any oriental language.
Notes- (1) The Punjab Government
have ruled, under Act XVIII of 1879, that the certificates of Pleaders, Mukhtars
and Revenue agents, admitted under that Act, shall be stamped with impressed
labels-(Punjab Government Notification No. 743, dated 18th July
1887).
(2) Note to clause (ii) and proviso-Instruments of agreements
and memorandum of agreement when written in the Urdu character may, in the
Punjab, be stamped with special adhesive labels-(Punjab Government, Finance
Department, Notification No. 3873, dated 6th February 1926).
Correction Slip No. 29
Dated Lahore The 13th August
1935
Punjab stamp Manual, 1934
Part-I B, Chapter 2, Page
4
For the proviso to clause (ii) and note (2) to rule 10 the following should be substituted:
‘Provided that the Local Government may direct that this rule shall apply, subject to any conditions which it may prescribe to any of the instruments specified in Appendix III, other than Bills of Exchange when written in any oriental language’.
(Government of India, Finance Department (Central
Revenues), notification No. 4-Stamps, dated the 14th July 1934).
(2) Note
to clause (ii) and proviso- In the Punjab the restriction on the use of special
adhesive labels has been removed in the case of all instruments (other than
Bills of Exchange) specified in Appendix III to these rules when written in the
Urdu character.
( Punjab Government notification No. 543-St. dated the 3rd July 1935).
*****
Correction Slip No. 68
Dated Lahore The 18th
January 1937
Punjab stamp Manual, 1934
Part-I B, Chapter 2, Page
4
In the second line of note
(1) to rule 10, the word and comma ‘pleaders,’ should be deleted.
( Punjab Government notification No. 1046-St. dated the 5th September 1936).
*****
11. Mode of affixing and
impressing labels-(1) The proper officer shall, upon any instrument specified in rule
10 being brought to him before it is executed, and upon application being made
to him, affix thereto a label or labels of such value as the applicant may
require and pay for and impress or perforate such label or labels by means of a
stamping machine or a perforating machine, and also stamp or write on the face
of the label or labels the date of impressing or perforating the same.
Note-It has been ruled that the
words ‘before it is executed’ must be taken to mean ‘before an instrument is
fully and finally executed by all the parties thereto,’ hence an instrument
executed by one party or more, but not by all the parties thereto may be
stamped under this rule-(Punjab Government letter No. 1051, dated 15th
April 1880).
In the case of instruments
written on parchment, the labels shall be further secured by means of metallic
eyelets.
(2) On
affixing any label or labels under this rule, the proper officer shall, where
the duty amounts to rupees five or upwards, write on the face of the label or
labels his initials, and where the duty amounts to rupees twenty or upwards,
shall also attach his usual signature to the instrument immediately under the
label or labels.
(3) The following
officers may discharge the functions of the proper officer under sub rule (2),
namely:
(i) Any principal assistant of the proper officer empowered by
the Local Government in this behalf;
(ii) In Calcutta, the Deputy Collector and the Superintendent of
the Stamp Department of the Collector’s office;
(iii) In
Karachi, the Assistant Superintendent of Stamps; and
(iv) In Lahore, the head or any other Assistant for the time being
in charge of the stamping work in the Financial Commissioner’s Office.
Note to rule
8-11-The stamping is done in
the office of the Financial Commissioners, Punjab (Rule 2(d) and Appendix I)
for the Punjab for the North West
Frontier Province. See also Part III, Chapter 6.
Correction Slip No. 166
Dated Lahore The 28th March
1942
Punjab stamp Manual, 1934
Part-I B, Chapter 2, Page
5
In the note at end or rule
11 delete the words ‘and for the North West Frontier Province’.
( N.W.F.P. Government (Revenue Department) notification No. 1880 S.A., dated the 15th January 1942).
*****
12. (1) Certain instruments to be stamped with impressed label- Instruments executed out of British India and
requiring to be stamped after their receipt in British India (other than
instruments which, under section 11 of rule 13, may be stamped with adhesive
stamps) shall be stamped with impressed labels.
(2) Where any such instrument as aforesaid is taken to
the Collector under section 18, sub section (2), the Collector, unless he is
himself the proper officer, shall send the instrument to the proper officer,
remitting the amount of duty paid in respect thereof; and the proper officer
shall stamp the instrument in the manner prescribed by rule 11, and return it
to the Collector for delivery to the person by whom it was produced.
Note: See Part III Chapter 6.
OF ADHESIVE STAMPS
13. Use of adhesive stamps on certain instruments - The following instruments may be stamped with
adhesive stamps, namely:
(a)
Bills of exchange payable otherwise
than on demand and drawn in sets, when the amount of duty does not exceed one
anna for each part of the set.
(b)
Transfers of debentures of public
companies and associations.
(c)
Copies of maps and plans and
printed copies when chargeable with duty under Article 24 of Schedule-I.
Correction Slip No. 80
Dated Lahore The 12th
October 1935
Punjab stamp Manual, 1934
Part-I B, Chapter 2, Page
6
In clause (e) of rule 18 for the words ‘copies of maps and plans and printed copies,’ the words ‘copies of maps of plans, printed copies and copies of or extracts from registers given on printed forms ‘ should be substituted.
Government of India Finance Department(Central Revenues) notification No. 13., dated the 14th September 1935).
*****
Correction Slip No. 192 Dated Lahore The 22nd November 1945
Punjab stamp Manual, 1934
Part-I B, Chapter 2, Page 6
For the existing entry No. 13 (c) as inserted by correction slip No. 30, dated the 12th October 1935, substitute the following :
‘Copies of maps and plans and printed copies, copies
of or extracts from registers given on printed forms and copies of records of
the courts and offices under the control of the High Court of Judicature at
Lahore other than the records of Judicial proceedings when chargeable with duty
under Article 24 of Schedule I-A.’
*****
(d)
Instruments chargeable with duty
under Articles 5 (a) and (b) and 43 of Schedule I.
(e)
Instruments chargeable with stamp
duty under Article 47 of Schedule I.
(f)
Instruments chargeable with stamp
duty under Articles 19, 36, 37, 49 (a) (ii) and (iii) and 52 of Schedule I.
Note: See Rules 16 and 17.
13-A. Notwithstanding
anything contained in these rules whenever the stamp duty, payable under the
Act in respect of any instrument, cannot be paid exactly by reason of the fact
that the necessary stamps are not in circulation the amount by which the
payment of duty shall on that account be in defect shall be made up by the
affixing of one anna and half anna adhesive stamps such as are described in
rule 16, provided that a Local Government may direct that instead of such
stamps, adhesive Court fee stamps shall be used for the purpose.
14. Supply of deficient duty on transfer of share- When any instrument of transfer shares in a Company or Association is
written on a sheet of paper on which a stamp of the proper value is engraved or
embossed and the value of the stamp so engraved or embossed is subsequently, in
consequence of a rise in the value of such shares, found to fall short of the
amount of duty chargeable under Article No. 62 (a) of Schedule I, one or more
adhesive stamps bearing the words
‘Share Transfer’ may be used to make up the amount required.
15. Enrolment of Advocates, Vakils or Attorneys- *When adhesive stamps are used to indicate the duty
chargeable on entry as an Advocate, Vakil or Attorney on the roll of any High
Court such stamps shall be affixed
under the superintendence of a gazetted officer of High Court, who shall obtain
the stamp from the Superintendent of Stamps or other officer appointed in this
behalf by the Local Government and account to him for it. Such gazetted officer
shall, after affixing the stamp, write on the face of it his usual signature
with the date thereof.
Note: This stamping is at present done in the office of
the Financial Commissioner at Lahore.
*(Government
of India, Finance Department (Central Revenue), Notification Stamps No. 13,
dated 20th May 1926).
*16. Except as otherwise provided by
these rules, the adhesive stamps used to denote duty shall be the requisite
number of stamps-
(i)
bearing the words ‘Four annas’ or
‘Two Annas’ or ‘One Anna’ or
‘Half Anna’; and
(ii)(a) in
the case of instruments executed elsewhere than in Burma, bearing the words ‘India
Revenue or, where the instrument has been executed in
Bihar, and Orissa, the words ‘Revenue B. & O.’ or where the instrument has
been executed in the Bombay Presidency the words ‘Bombay Revenue’.
(iii) in
the case of instruments executed in Burma inscribed for use either for postage
or for revenue or for both postage and revenue.’
*(Government of India, Finance Department (C.R.),
Notification Stamps No. 3, dated 31st March, 1934).
17. Special adhesive stamps to be used in certain cases –The following instruments when stamped with
adhesive stamps shall be stamped with the following descriptions of such
stamps, namely:
(a) Bills
of exchange, cheques and promissory notes drawn or made out of British India
and chargeable with a duty of more than one anna; with stamps bearing the words
‘Foreign Bill’.
Note-A promissory note, bill of exchange, or cheque drawn or made in British
India, and made payable in or drawn upon any person resident in British India
is an ‘Inland instrument’. Any instrument not so drawn made or made payable is
a’ foreign instrument’. (Section 11 and 12 of Act XXVI of 1881). See amendments
to articles 13 and 21 of Schedule I, cheques are no long liable to duty.
(b) Separate
instruments of transfer of shares and transfers of debentures of Public
Companies and Associations; with
stamps bearing the words ‘Share Transfer’.
(c)
Entry as an Advocate, Vakil or
Attorney on the roll of any High Court; with stamps bearing the word
‘Advocate’, ‘Vakil’ or ‘Attorney’, as the case may be.
(d)
Notarial acts; with foreign bill
stamps bearing the world ‘Notarial’.
(e)
Copies of maps or plans and
printed copies certified to be true copies; with court fee stamps.
Correction Slip No. 80
Dated Lahore The 12th October
1935
Punjab stamp Manual, 1934
Part-I B, Chapter 2, Page
8
In clause (e) of rule 17 for the words ‘copies of maps or plans and printed copies,’ the words ‘copies of maps or plans, printed copies and copies of or extracts from registers given on printed forms ‘ should be substituted.
Government of India Finance Department (Central Revenues) notification No. 13, dated the 14th September 1935).
*****
Correction Slip No. 192 Dated Lahore The 22nd November 1945
Punjab stamp Manual, 1934
Part-I B, Chapter 2, Page 8
For the existing entry No. 17 (e) as inserted by correction slip No. 31, dated the 12th October 1935, substitute the following :
‘(i) Copies of maps or plans and printed copies,
copies of or extracts from registers given on printed forms and copies of
records of the courts and offices under the control of the High Court of
Judicature at Lahore other than the records of Judicial proceedings certified
to the true, and
(ii) Printed Central Excise Bond forms to be
executed under with court fee stamps’.
*****
(f)
instruments chargeable with stamp
duty under Articles 5 (a) and (b) or 43 of Schedule I; with stamps bearing the
words ‘Agreement’ or ‘Brokers’ Note,’ respectively.
(g)
Instruments chargeable with stamp
duty under Article 47 of Schedule I; with stamps bearing the word ‘Insurance’.
MISCELLANEOUS
18. Provision for cases in which improper description of stamp is
used- When an instrument bears a stamp of proper amount,
but of improper description, the Collector may, on payment of the duty with
which the instrument is chargeable certify by endorsement that it is duty
stamps:
*Provided
that where the stamp borne on the instrument is a postage stamp and the proper description
of stamp is a stamp bearing the words ‘India Revenue’, or the words ‘revenue B.
& O.’ or the words ‘Bombay Revenue’, the Collector shall so certify if the
instrument was executed before, and shall not so certify if it was executed on
or after the Ist April 1935.
Note- See Section 37 and 40 of
the Act.
*Government of India, Finance Department (C.R.),
Notification Stamps No. 3, dated 31st March 1934.
*19. Evidence as to circumstances of claim to refund or renewal- The Collector may require any person claiming a
refund or renewal under Chapter V of the Act, or his duty authorised agent, to
make an oral deposition on oath or affirmation or to file an affidavit, setting
forth the circumstances under which the claim has arisen, and may also, if he thinks
fit, call for the evidence of witnesses in support of the statement set forth
in any such deposition or affidavit.
*Note- See Part III, Chapter 8.
20. Payment of allowances in
respect of spoiled or misused stamps or on the renewal of debentures- When an application is made for the payment, under
Chapter V of the Act, or an allowance in respect of a stamp** which has been
spoiled or misused or for which the applicant has no immediate use or on the
renewal of a debenture, and an order is passed by the Collector sanctioning the
allowance or calling for further evidence in support of the application, then
if the amount of the allowance or the stamp given in lien thereof is not taken,
or if the further evidence required is not furnished , as the case may be, by
the applicant within one year of the date of such order, the application shall
be struck off, and the spoiled or misused stamp (if any) sent to the
Superintendent of Stamps or other officer appointed in this behalf by the Local
Government for destruction.
*21. Mode of cancelling original debenture on refund under section
55- When the Collector makes a refund under
section 55, he shall cancel the original debenture by writing on or across it the words ‘Cancelled’ and his usual
signature with the date thereof.
*Note -See part III Chapter 8.
**(Government of India, Finance Department (Central
Revenue), Notification Stamps No. 13, dated 20th May 1926).
22. Rewards- On the conviction of any offender under the Act,
the Collector may grant to any person who appears to him to have contributed
thereto a reward not exceeding such sum as the Local Government may fix in this
behalf.
Note-See Section 69 of the Act, Part I-A.
The sum fixed is Rs. 50 (Punjab Government No. 1501,
dated 24th August 1882). Any magistrate trying an offender (Section
71) should, if he thinks the grant of a reward necessary, refer the matter for
the orders of the Collector. In order that cases in which rewards should be
given are not lost sight of, the Record keeper should pass over the files of
all such relevant cases before filing them to the Head Vernacular Clerk in
order that he might obtain the orders of the Collector. Fines under the Stamp
Act are credited to ‘XVII-Administration of Justice’ and rewards should be
drawn on separate bills and debited to the allotment provided for the purpose
under head 7- Stamps’.
NOTES AND ADMINISTRATIVE INSTRUCTIONS ON
SECTIONS AND ARTICLES OF SCHEDULES I AND I-A OF THE STAMP ACT.
1. In the paragraphs that follow sections of the Stamp Act and articles in schedules I and I-A thereof are discussed, the discussion being supplemented, where necessary, by quoting the orders issued by competent authority.
A---Notes on sections of the Stamp Act.
2. (i) Section `(2(1) .
----“Banker “ includes---
(a)
person or a
corporation or company acting as bankers(Section 3, Act 26 of 1881);and
(b)
a Government treasury
in respect of local fund money lodged therein.
(ii) Section 2(2) .— “A bill of exchange is an
instrument in writing containing an unconditional order, signed by the maker ,
directing a certain person to pay a certain sum of money only to , or to the
order of certain person, or to the bearer of the instrument . A promise or
order to pay is not conditional within the meaning of this section and section
4, by reason of the time for payment of the amount or any instalment thereof
being expressed to be on the lapse of a certain period after the occurrence of
a specified event, which, according to the ordinary expectation of mankind, is
certain to happen although the time its happening may be uncertain, The sum
payable may be ‘certain’ within the meaning of this section and section 4,
although it includes future interest, or is payable at an indicated rate of
exchange, or is according to the course of exchange, and although the
instrument provides that, on default of
payment of an instalment, the balance unpaid shall become due. The person to
whom it is clear that the direction is given, or that payment is to be made,
may be ‘certain person’ within the meaning of this section and section 4
although he is misnamed, or designated by description only.”(Section 5 Act 26
of 1881.)
(iii) Section 2(3) – In a promissory note or bill of exchange the expression “at sight” and
“ on presentment” mean on demand (Section
21, Act 26 of 1881.). A promissory note or bill of exchange , in which
no time for payment is specified, is payable on demand. (Section 19 of the same
Act.)
(iv) Section 2(5) –Clause(a) relates to a bond with a condition: Clauses(b) and (c) relate to single bonds.
It is necessary to hold
firmly in mind the requisites of a bond.
The requisites are as follows :-
(1)
It must be in writing.
(2)
It must bear the
signature, seal, or thumb mark of the obligor,
(3)
It must be attested by
at least one witness who is not the
writed.
(4)
It must contain a
distinct agreement by which the obligor binds himself to pay something to the
obligee.
(5)
It must not be payable
to bearer or order.
When any one of these requisites is absent, the
instrument is not a bond.
For
discussion as to differentiation between a bond and an acknowledgment
please see note under article 1 of the schedules to the stamp Act—paragraph 58 infra.
(v) Section
2(7). - Cheques are no longer liable to
stamp duty ( See Indian Finance Act, 5 of 1927.)
(vi) Section 2(8)(d). – The Chief Controlling
Revenue Authority in the Punjab is the Financial Commissioner , and as such he
exercises the powers and functions which under the Stamp Act, are required to
be exercised by the Chief Controlling Revenue Authority, such as those
mentioned in sections 45,56,57 and 70 But independently of these, the Financial Commissioner, being
charged with the general control of the
stamp revenue as a matter of administration , may exercise such powers and
discharge such duties as the Government
may direct, so far as such powers and duties are not opposed to, or
inconsistent with the stamp law.
(vii) Section 2(9)(b). - In the case of Lahore
district the powers of Collector have been conferred on the First Assistant to
the Deputy Commissioner, Lahore, The power of Collector to sanction allowances
for non-judicial stamps under Chapter V of the Stamp Act have also been
conferred upon all officers in charge of treasuries who have passed the
treasury branch of the departmental examination (Punjab Government Notification no. 28321-F ., dated the 4th October 1928, and no. 4983 –R & S.,
dated the 14th August 1934)
(viii) Section 2 (12). -“Signed “ and “signature”
include “ marked “ and “mark” in an illiterate person(The General Clauses Act, 10 of 1897.)
(ix) Section 2(13) .—The certificate of the
Collector under section 32 that the full duty with which an instrument is
chargeable , has been paid, is an impressed stamp for the purposes of section
49 of the Stamp Act.
(x) Section 2(15). --- “The final order “means not
the order authorising a partition to proceed , but the order passed
after the partition has been made, declaring the various allotments of land . (Reference by Revenue Board 2 All. 664 ,
F.B.)
(xi) Section 2(16).--- in section 105 of the Transfer of Property Act(4 of 1882) – a lease of immovable property is defined as a transfer of a right to enjoy such property , made for a certain time , express or implied , or in perpetuity, in consideration of a price paid or promised or of money, share of crops, service, or any other thing of value , to be rendered periodically or on specified occasions to the transferor by the transferee who accepts the transfer on such terms, The transferor is called the lessor, the transferee is called the lessee, the price is called the premium and money , share ,service ,or other thing to be so rendered is called the “ rent” . The definition is confined to immovable property, and a lease of movable property would fall under schedule 1-A , article 5(c).
The word “toll” in clause (c) must be taken in its
ordinary sense to mean a tax paid for some liberty or privilege, such as for
passage over a bridge or ferry, or along a highway, or for selling in a market
or fair, and such like does not include “octroi”. (Financial Commissioner’s
Circular no. 35, dated 13th August,1833)
(xii) Section 2(17)—A mortgage is defined in section
58 of the Transfer of Property Act as the transfer of an interest in specific
immovable property for the purpose of securing the payment of money advanced by
way of a loan, an existing or future debt, or the performance of an engagement
which may give rise to pecuniary
liability . In the F.B. ruling , 53 P. R. 1916( Allah Ditta V.Nazar Din) it was
held that this definition should be adopted in the Punjab and given its full
logical effect; and in consequences of this finding it was ruled that in the
absence o a covenant to the contrary
the mortgage is complete or , in other words the transfer of interest is
effected, not when the consideration for it is paid or made good,
(xiii) Section 2(18). – Expressions referring to “
writing” are to be construed as including references to printing , lithography,
photography, and other modes of representing or producing words, in a visible
form (General Clauses Act,10 of 1897, section 3(58).)
(xiv) Section 2(21) , -- For powers of attorney
which are chargeable under the Court –fees Acts, section 19 , clause(I) and
schedule II,. article 10, of that Act should
be referred to.
3. Section 3 prescribed
what instruments are chargeable under the Act with stamp duty. All instruments
mentioned in schedules I an I-A and not exempted by those schedules, or by an
order made under section 9, are so chargeable if executed in British India : it
does not mater whether it relates to property situate or to any matter or thing
done or to be done in or out of British India.
The exemptions given in schedules I-A and I as also
remissions and reductions of duty made under section 9 and reproduced in
chapter 1 of this part should be noted carefully.
Proviso (1)
--, In regard to the general exemptions in favour of Government the
word” Government “ does not include the local bodies , Court of wards or the
Administrator-General. Where, however, these bodies acted as a Government
agency for the transactions of duties devolving upon Government as part of its
ordinary administration such as making roads, erecting Government buildings,
and the like, the general exemption would apply, ( Financial commissioner’s
letter no. 6873, dated 13th September, 1884.) Government must be an
express party, and if an instrument drawn in favour of a Government servant as
a trustee for the Government , it would be liable to duty, ( All Cir, No. 7,
dated 30th October, 1885.)
4. Section 4. - A lease is
not covered by this section
5. Section 8. - This section affords facilities to local
authorities for issuing debentures upon payment of composition duty . The penalty in clause(3) should be noted
Act 11 of 1879 quoted has been repealed by Act 9 of 1914.
6. Section 9 (a) The reduction and remissions made by the
Governor – General in council are reproduced in chapter 1 of this part.
7. Section 10. - The rules
framed by the Governor – General in council are printed in chapter 2 of
this part.
8. Section 11. - Chapter ii
of the rules framed by the Government of India and reproduce in Chapter 2 of
this part should be read with this section . The use of adhesive stamps is, as
a general rule, permissive and not obligatory, and where an impressed stamp
paper is available and is suitable for the purpose , it may be used instead of
an adhesive label.
The Act
excepts parts of bills of exchange payable otherwise than on demand and drawn
in sets; but this exception is practically annulled by rule 13 of the
Government of India rules in chapter 2 of this part.
9. Section 12. –
Cancellation of the stamp is made obligatory by this section and the penalty is
contained in section 63 of the Act. See also sub – Section (2) . The mode of
cancellation is , however, left to the individual concerned but it must be
effectual.
Public officers should be careful to see that the
adhesive stamps on instruments coming
before them have been properly cancelled, and have not been previously
use.
10. Section 13. --- This section does not apply to
adhesive stamps. The section requires the stamp to appear “ on the face of the
instrument” and so it is necessary that part of the instrument should be
written on the side of the paper which bears the stamp impression (Government
of India letter no. 917, dated 28th February 1881, to Government of
Bombay.) Attaching blank stamp – paper to the instruments written on plain or
insufficiently stamped paper in therefore illegal.
11. Section 16. —A duplicate
or counterpart of an instrument may be endorsed under this section 9 see
article 25 of schedule I-A.) No other method of denoting payment of duty has
been prescribed.
12. Sections 17 to 19-A. -
Prescribe the proper time for stamping, instruments executed with in British
India must be stamped at or before execution ( Section 17). The first holder in
British India of a foreign bill of exchange payable otherwise than on demand or
promissory note must stamp it before negotiating or presenting it for
acceptance or payment (Section 19); or other foreign instruments must be
stamped within three months after arrival in British India (section 18). The
amendment in section 19-A should be noted carefully.
Where an instrument executed out of British India is brought to the collector after the expiry of three months allowed by section 18, he may, if he is satisfied that the omission to tamp it has been occasioned by accident, mistake or urgent necessity, proceed under sections 41 and 42 to validate it (Madras Stamps Manual 1933)
13. Section 20. —This section
prescribes the method of valuation of an instrument when the valuation in such
an instrument is expressed in a currency other than that of British India. The
following rates have been prescribed by the Government of India for the
conversion of the Currencies hereinafter specified respectively into the
currency of British India for the purpose of calculating ad valorem duty on
instruments chargeable therewith: -
|
Currency |
Sum |
Equivalent In
Currency of British India |
||
|
|
|
Rs |
A. |
P. |
|
British |
£ 1 sterling |
13 |
5 |
4 |
|
French |
1
France |
0 |
1 |
9 |
|
German |
1
Renten Mark |
0 |
10 |
9
(as amended) |
|
United
States of America Or Canadian |
1
dollar |
2 |
12 |
0 |
|
Chinese
(Shanghai) |
1
Tael |
2 |
2 |
6 |
|
British
Asiatic Possessions(Straits) |
1
Dollar |
1 |
8 |
0 |
|
Hongkong |
1 |
9 |
6 |
|
|
Mexican |
1 |
9 |
6 |
|
|
Japanese |
1
yen |
1 |
2 |
6 |
|
Persian |
1
kran |
0 |
5 |
0 |
These
rates are subject to alteration by a notification in Gazette of India.
Government of India, Finance Department ( Central
Revenue)Notification C. no. 125 – stamps /25, dated 18th September 1925, as amended by Notification
no 8-Stamps, dated 7th
November 1931