(3) The person required by sub-section (1) to cancel an adhesive stamp may cancel it by writing on or across the stamp his name or initials or the name or initials of his firm with the true date of his so writing, or in any other effectual manner.
Any instrument mentioned in Schedule I to Indian Stamp Act is chargeable to duty as prescribed in the Schedule. These include affidavit, lease, memorandum and articles of company, bill of exchange, bond, mortgage, conveyance, receipt, debenture, share, insurance policy, partnership deed, proxy, shares etc.
Also, the legal meaning of Conveyance as described in a case law is also as follows: If there exists an agreement to transfer immovable property and possession has already been delivered to transferee then it would be 'conveyance' within meaning of Section 23 of Indian Stamp Act, 1899[8].
THE INDIAN STAMP (HARYANA AMENDMENT) ACT, 2020 AN ACT further to amend the Indian Stamp Act, 1899, in its application to the State of Haryana.
Under the Stamp Act, the Central Government can levy stamp duty on some instruments like bills of exchange, cheques, promissory notes, transfer of shares etc. The Centre is empowered to levy stamp duty on specified instruments and also to fix the rates for these instruments.
The main purpose of this Act is to generate revenue for the Indian government. A document which is stamped acts as valid evidence in a court of law. The Stamp Act also makes payment of stamp duty on some documents compulsory which in return makes those documents legally valid and authentic.
They were used when dealing with bills of exchange, promissory notes, or IOUs. Hundi papers are revenue stamps that are pre-printed on paper and are used for credit and trade transactions. Special adhesive stamps are now actively replacing Hundi papers.
Adhesive stamps are labels which can be conveniently stuck on the instruments. Adhesive stamps can be further categorised into two categories: postal and non-postal stamps.
“duly stampedâ€, as applied to an instrument, means that the instrument bears an adhesive or impressed stamp of not less than the proper amount, and that such stamp has been affixed or used in accordance with the law for the time being in force in India.
What Kinds of Stamps Exist?
- Definitive Stamps. A definitive stamp (e.g., U.S. flag stamp) is issued year after year, and the quantity produced is not capped.
- Forever Stamps.
- Commemorative Stamps.
- Semipostal Stamps.
- Postage Meter Indicia.
- Mailing Permit Imprints.
- Customized Postage Indicia.
11.Where from the Special Adhesive Stamps can be had?
- General Stamp Office,Ammacomplex,Nandanam ,Chennai-35.
- Egmore-Nungambakkam Sub Treasury,
- Perambur – Purasawalkam Sub Treasury,
- Fort – Tondiarpet Sub Treasury.
- Mylapore – Triplicane Sub Treasury.
- Mambalam – Guindy Sub Treasury.
Procedure to Fill Registration Form 102:-It should be executed on a “Non-Judicial Stamp Paper†or “Special Adhesive Stamp†of the prerequisite value which must be affixed on that. It should be duly signed by the article assistant and the principle which should be executed in a printed form in duplicate.
Franking, is a process of actually getting the documents stamped. This process includes getting the documents marked or stamped, indicating that the documents are legal and the stamp duty levied on the documents has been paid.
The first self-adhesive stamp was issued in the UK in 1993. It was 2006 that saw the introduction of two new 'large' size definitive stamps. This was part of Royal Mail's new pricing structure which took in to consideration the size as well as the weight of a letter of parcel.
ANSWER: As per Indian stamp act 1899, Stamping is a tax on the documents executed in India, share Certificates comes under the definition of Instrument, hence it is liable to be stamped as per the government specifications. QUESTION3: In how many days stamp duty shall be paid to the revenue department?
| Contents |
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| Sections | Particulars |
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| 42 | Endorsement of instruments in which duty has been paid under sections 35, 40 or 41 |
| 43 | Prosecution for offence against stamp law |
| 44 | Persons paying duty or penalty may recover same in certain cases |
Negotiable warehouse receipts not liable to stamp duty. —Notwithstanding anything contained in this Act, negotiable warehouse receipts shall not be liable to stamp duty].
As per the proposal, the levy is expected to be at a minimum rate of 0.05% that will go up depending on the tenor. There will be a cap of 0.25% or Rs 25 lakh, whichever is lower.
Stamp duty is charged on the ready reckoner rate/market value/circle rate or the consideration value of the property, whichever is higher. For example, if the agreement value of your flat is Rs 60 lakh and the circle rate is Rs 50 lakh, then, the stamp duty would be computed on the higher value, i.e., Rs 60 lakh.
The market value of the property determines the amount your to be charged for stamp duty which is often calculated as a percentage of the market value. You are certain to pay less in terms of stamp duty for an old building as you would for a new one.
