The Indian Stamp Act, 1899
Bihar · state statute
Open in Lexace · Ask the AI about this actTHE INDIAN STAMP ACT, 1899 (2 of 1899)
[27th January, 1899, An Act to consolidate and amend the law relating to Stamps Whereas itis expedient to consoli dat : : tis hereby enacted as follows:— @ and amend the law relating to Stamps;
CHAPTER |
PRELIMINARY
1. Short title, extent and commencement,— i indian Stamp Act, 1899. -—(1) This Act may be called The
(2) It extends to the whole of India except the State of Jammu and Kashmir:
Provided that it shall not apply to the territories which immediately before the 1st November, 1966, were comprised in Part B States (excluding the Siate of Jammu and Kashmir except to the extent to which the provisions of this Act relate to rates of stamp duty in respect of documents specified in Entry 91 of List 1 in the Seventh Schedule to the Constitution.
(3) It shall come into force on the first day of July, 1899.
2. Definition.— In this Act, unless there is something repugnant in the subject or context.—
Comments and case-law
[This section gives an exclusive definition of the expression as referring to any document by which any right or liability is purported to be created, transferred,
limited, extended, extinguished or recorded, Municipal Corporation, Delhi, v, Bamod
Kr. Gupta. AIR 1991 SC 401
Where provision for buy of additional stamp duty is no longer in force, the
Revenue Authority will not be justified in impounding the sale deed presented for
registration on the ground that it was not sufficiently stamped nor to demand that
additional stamp duty be paid.L/C Class ! Officers Sahkari Grih Nirman Samiti Ltd.
vs. State of Bihar, 1993 (1) BLJ 412: 1993 (1) BLUR 621.
A proceeding taken against party under a temporary statute will ipso facto
terminate as soon as t’'3 statute expires. ibid.
Stamp deficit case. Authority of Collector of district can only be delegated by State
Govt. by a notification in official Gazette. Collector by his own authority cannot delegate
the power to Deputy Collector, Stamp. Lirmila Devi vs. State, 2007(3) PLJR 734.]
(1) Banker.— "Banker" includes a bank and any person acting as a banker.
(2) Bill of exchange.— "Bill of exchange" means a bill of exchange as defined
by the Negotiable Instruments Act, 1881 (26 of 1881), aiid includes also a hundi,
and any other document entitling or purporting to entitle any person, whether named therein or not, to payment by any other person of, or to draw upon any other person for, any sum of money;
(3) Bill of exchange payable on demand.—'Bill of exchange payabie on
demand” includes—
(a) an order for the payment of any sum of mcney by a bill of exchange or
promissory note, or for the delivery of any bill of exchange or promissory
note in satisfaction of any sum of money, or for the payment of any
sum of money out of any particular fund which may or may not be —_—__.
1. fae aay (starr) Pare 8.2.1988 ¥ werfira
74] Bihar Stamp Manual [ Sec. 2
available, or upon any condition or contingency which may or may not
be performed or happen,
(b) an order for the payment of any sum of money weekly, monthly or at
any other stated period, and
(c) a letter of credit, that is to say, any instrument by which one person
authorises another to give credit to the person In whose favour it is
drawn;
(4) Bill of lading.— "Bill of lading" includes a “through bill of lading" but does
not include a mate's receipt;
(5) Bond. "Bond" includes—
(a) any instrument whereby a person obliges himself to pay Money to
another, on condition that the obligation shall be void if a specified act
is performed, or is not performed, as the case may be:
(b) any instrument attested by a witness and not payable to order or bearer,
whereby a person obliges himself to pay money to another, and
(c) any instrument so attested whereby a person obliges himself to deliver
grain or other agricultural produce to another.
(6) Chargeable.—"chargeable" means, as applied to an instrument executed
or first executed after the commencement of this Act, chargeable under this Act, as
applied to any other instrument, chargeable under the law in force in India when
such instrument was executed or, where several persons executed the instrument
at different times, first executed:
(7) Cheque.— "Cheque" means a bill of exchange, drawn on a specified banker
and not expressed to be payable otherwise than on demand;
(8) [Omitted by the A.O. 1937]
(9) Collector.— "Collector"-
(a) means within the limits of the towns of Calcutta, Madras and Bombay,
the Collector of Calcutta, Madras and Bombay, respectively, and without
those limits, the Collector of a district, and
(b) Includes a Deputy Commissioner and any officer whom the State
Government may, by notification in the official Gazette, appoint in this
behalf.
(10) Conveyance.—"Conveyance" includes a conveyance on sale and every
instrument by which property, where movable or immovable, is transferred inter
vivos and which is not otherwise specifically provided for by Schedule |,’ '[or by
Schedule I-A, as the case may be];
*("(11) Duly Stamped.—"Duly Stamped" as applied to an instrument means
that the instrument bears an adhesive or impressed stamp of not less than the
proper amount, and such stamp has been affixed or used in accordance with law for
the time being in force in India or proper stamp duly has been paid through any other
mode prescribed by the State Government".
(12) Executed and execution.— “Executed" and execution", used with
reference to instruments, mean "signed" and “signature”,
1. Ins. by Bihar Act. 6 of 1937,
2. Subs. by Bihar Finance Act 11 of 2002.
sec. 2 ] Indian Stamp Act, 1899 [ 75
(12-A) [Omitted by the A.O. 1950]
(13) Impressed stamp.—"Impressed stamp" includes-
(a) labels affixed and impressed by the proper officer, and
(b) stamps embossed or engraved on stamped paper:
(13-A) India—"India" means the territory of India excluding the State of Jammu
and Kashmir,
(14) Instrument.—"Instrument" includes every document by which any right
or liability is, or purports to be, created, transferred, limited, extended, extinguished
or recorded;
(15)Instrument of partition.—"Instrument of partition" means any instrument
whereby co-owners of any property divide or agree to divide such property in
severality, and includes also a final order for effecting a partition passed by Revenue
authority or any Civil Court and an award by an arbitrator directing a partition;
(16) Lease.—"Lease" means a lease of immovable property, and includes
also- .
(a) a patta;
(b) a quabuliyator other undertaking in writing, not being a counter part
of a lease, to cultivate, occupy, or pay or deliver rent for, immovable
property;
(c) any instrument by which tolls of any description are let;
(d) any writing on an application for lease intended to signify that the
application is granted;
(16-A) Marketable security.— "Marketable security" means a security of such
a description as to be capable of being sold in any stock market in India or in the
United Kingdom;
(17) Mortgage-deed.—"Mortgage-deed" includes every instrument whereby,
for the purpose of securing money advanced, or to be advanced, by way of loan, or
an existing or future debt, or the performance of an engagement one person transfers,
or creates to, or in favour of another, a right over or in respect of specified property;
(18) Paper.—"Paper" includes vellum, parchment or any other material in which
an instrument may be written;
(19) Policy of insurance.—"Policy of insurance" includes-
(a) any instrument by which one person, in consideration of a premium
engages to indemnity another against loss, damage or liability arising
from an unknown or contingent event;
(b) a life-policy, and any policy insuring any person against accident or
sickness, and any other Personal insurance;
(19-A) Policy of group insurance.—"Policy of group insurance" means any
instrument covering not less than fifty or such smaller number as the Central
Government may approve, either generally or wilh reference to any particular case,
by which an insurer, in consideration of a premium paid by an employer or by an
employer and his employees jointly, engaged to cover, with or without medical
examination and for the sole benefit of persons other than the employer, the lives of
all the employees or of any class of them determined by conditions pertaining to the
sae iment, for amounts of insurance based upon a plan which precludes individual election:
Bihar Stamp Manual [ Sec. 2
76]
(20) Policy of sea-insurance or sea-policy—"Policy of sea-insurance" or
"sea-policy"—
(a) Means any insurance Mm
marine or inland navigation)
of any ship or vessel, or upon
of any description whatever on board
the freight of or any other interest whic
or relating to, any ship or vessel; and
andise or proper’ for any
(b) Includes any insurance of goods, merch eC
transit which includes, not only a sea risk within the meaning of
clause (a) but also any other risk incidental to the transit insured
from the commencement of the transit to the ultimate destination
covered by the insurance,
Where any person, in consideration of any sum of money paid or to
be paid for additional freight or otherwise, agrees to take upon himself
any risk attending goods, merchandise or property of any description
whatever while on board of any ship or vessel, or engages te indemnity
the owner of any such goods, merchandise or property from any
risk, loss or damage, such agreement or engagement shall be deemed
to be a contract for sea- insurance;
(21) Power-of-attorney.—"Power-of-attorney" includes any instrument (not
chargeable with a fee under the law relating to court-fees for the time being in
force) empowering a specified person to act for and in the name of the person
executing it;
(22) Promissory note.—'Promissory note" means a promissory note as
defined by the Negotiable Instrument Act, 1881 (26 of 1881);
tt also includes a note promising the payment of any sum of money oul of any
particular fund which may or may not be available, or upon any condition or
contingency which may or may not be performed or happen;
Comments and Case-law.
[This section shows that for the purposes of the Stamp Act at least a note
promising payment upon any condition or contingency certain or not will amount to
promissory note an unconditional undertaking under section 4 of the Negotiable
instruments Act cannot be treated as a Promissory note. Kochuthressi v. Devdas
AIR 1988 Ker 282.] % -
(23) Receipt.—"Receipt" includes any note, memorandum or writing—
(a) Whereby any money, or any bill of exchange, cheque, or promissory
note is acknowledged to have been received, or
(b) Whereby any other movable property is acknowledged to have been
received in Satisfaction of a debt, or
(c) whereby any debt or demand or an | é any part of a debt or demand, !S
acknowledged to have been satisfied or discharged, or
(d) which signifies or imports any such acknowledgment, and whether
ne sare Is not signed with the name of any person;
(24) Settlement.— “Settlement” moz iti - . ins any non-tes é
writing, of movable or immovable property made neteatementanyisispse=
ade upon any ship or vessel (whether for
-orupon the machinery, tackle or furniture
any goods, merchandise or property
dof any ship or vessel, or upon
h may be lawfully insured in,
Sec. 2 | Indian Stamp Act, 1899 [ 77
(a) in consideration of marriage,
(b) for the purpose of distributing property of the settler among his family or those for whom he desires to provide, or for the purpose of providing for some person dependent on him: or
(c) for any religious or charitable purpose;
and includes an agreement in writing to make such a dispositior, and
where any such disposition has not been made in writing, any instrument recording, whether by way of declaration of trust or
otherwise, the terms of any such disposition;
(25) Soldier.—"Soldier" includes any person below the rank of non-
commissioned officer who is enrolled under the Indian Army Act, 1911 (8 of 1911)'
(26) Stamp.—"Stamp" means any mark, seal or endorsement by any agency
or person duly authorised by the State Government, and includes an adhesive or
impressed stamp, for the purpose of duty chargeable under this Act.
Comments and Case-law
[If the purpose of a particular provision is easily discernible from the whole
scheme of the Act; the intention should be found out from the language used by the
Legislature and if strict literal construction leads to an absurd result and if another
construction Is possible then that construction should be preferred to the strict literal
construction. C./.T. v. J.-H. Golta, (1985) 4 SCC 343.
Where the document is not of the nature of an instrument of partition by which
partition is sought to be effected, the same cannot be chargeable to stamp duty.
Order impounding document which was not required to be stamped is erroneous.
Mosst. Mango Devi v. Muneswar Prasad, 1983 PLJR 468: 1983 BBCJ 604. See
also Bhudeb Chatterjee v. A. Chatterjee. AIR 1928 Cal. 705. |
When there is no stipulation postponing the payment, the expression, "payable
on demand’ in the document means that the money becomes due forthwith at once
onthe execution of the document. In sucha case the use of expression "payable on
demand" cannot be taken to be a condition, but when the payment cannct be enforced
within a stipulated period and itis stated that the debt becomes payabie after that
period on demand, such a document is-not a promissory note within the meaning of
section 2 (2). Mosst. Radha Devi v. Dhanik Lal Isser, 1970 PLJR 673: 1970 BLJR
1243.
The expression “includes” in the definition of "bond" by itself suggest that the
definition is not exhaustive but merely illustrative. A deed containing promise to pay
after certain period on demand, must be held to be a “bond” within the meaning of
section 2(5) of the Stamp Act, and not a promissory note chargeable under Article
49 (b) of the Schedule to the Stamp Act. Such a document, being a bond, is therefore,
chargeable under Article 15 of the Schedule to the Stamp Act, ibid
—Sections 2(15), 33, 40 & 45—Simple memorandum of partition recording
properties allotted to each of the parties after partition—it Is not an instrument of
partition—not chargeable to stamp duty and need not be stamped—cannot be
impounded for not being duly stamped. Mosst. Mango Devi vs. Muneshwar Prasad,
1983 PLUR 469.
1. See now the Army Act, 1950
2. “Clause 26" omitted by Act 43 of 1955 (w.i.f. 1 4.1956) and again ins. by Act 23 of 2004
(w.i.f.10.9.2004)
Bihar Stamp Manual [ Sec. 3
CHAPTER II
STAMP-DUTIES
A, Of the Liability of Instruments to Duly
3. Instruments chargeable with duty.—Subject to the provisions of this Act
and the exemptions contained in Schedule |, the following instruments shall be
chargeable with duty of the amount indicated in that Schedule as the proper duty
therefor, respectively, that is to say:—
(a) ‘every instrument mentioned in that:
previously executed by any person, IS execute
first day of July, 1899;
(b) every bill of exchange pay
note drawn or made out 0
paid, or presented for acceptan
or otherwise negotiated, in India; and
(c) every instrument (other than a bill of exchange or promissory note)
mentioned in that Schedule, which not having been previously executed
by any person, is executed oul of India on or after that day, relates to
any property situate, or to matter or thing done or to be done, in India
and is received in India;
"Provided that, except as otherwise expressly provided, in this Act, and
notwithstanding anything contained in clauses (a), (b) or (c) of this section or in
Schedule |, the amount indicated in Schedule IA shall, subject to the exemptions
contained in that Schedule, be the duty chargeable on the following instruments,
mentioned in clauses (aa) and (bb) of this proviso, as the proper duty therefore
respectively:—
(aa) every instruments, mentioned in Schedule IA as chargeable with duty
under that Schedule, which, not having been previously executed by
any person, is executed in Bihar on or after the first day of January,
1938; and
(bb) every instrument, mentioned in Schedule IA as chargeable with duly
under that Schedule, which, not having been previously executed by
any person, is executed out of Bihar on or after the first day of January,
1938 and relates to any property situated, or to any master or thing
done or to be done, in Bihar and is received in Bihar:]
Provided '[also] that no duty-shall be chargeable in respect of—
(1) any instrument executed by, or on behalf of or in favour of, the Government
in cases where, but for this exemption, the Government would be liable to pay the
duty chargeable in respect of such instrument;
(2) any instrument for the sale, transfer or other disposition, either absolutely
or by way of mortgage or otherwise, of any ship or vessel, or any part interest,
share or properly of or in any ship or vessel registered under the Merchant Shipping
Act, 1897 (5) and 58Vicl, c (60) or under Act 19 of 1838 or the Indian Registration of
Ships Act, 1841 (10 of 1841), as amended by subsequent Acts.
2{ “Provided further also that any entry in Schedule IA for the State of Bihar
—————
at Schedule which, not having been
din India on or after the
able otherwise, than on demand or promissory
f India on or after that day and accepted or
ce or payment, or endorsed, transferred
7. Ins. by Bihar Act 6 of 1937.
2. Ins. by Bihar Finance Act 11 of 2002.
- Secs. 3A-5 ] Indian Stamp Act, 1899 [ 79
may be added, deleted, or amended by the State Government by issuing a notification.
‘[ 3-A. The amount of stamp duties chargeable under the Act on all instruments,
except bills of exchange, cheques, promissory notes, bills of lading, letter of credit,
policies of insurance, proxies and receipts, shall be increased in each case by an additional surcharge at the rate of ten percentum of the amount of the stamp duties]
Comments & Case-law
[Recovery of dues of the State Bank Bank of India can be made under this
Act. The State Bank is an instrumentality of the State. Authorisation by Central
Statute to State is not necessary. Entry 43 of List | of the constitution of India
pertains both to recoveries of Taxes and Public Demands within and without the
respective States. Matters in the State List and Concurrent List some times overlap
each other, but that does not go beyond the plenary power of the State Legislature.
Sawar Mal Chaudhary vs. State Bank, 1986 PLJR 660: 1986 BBCJ 446.
Remedies provided in statute must first be exhausted before writ jurisdiction
is invoked. ibid.
Where the instrument of release relates to five distinct items of property
acquired at different points of time the matter comes under the purview of section 5
of the Indian Stamp Act and the instrument is chargeable with the aggregate amount
of the duties with which separate instruments, each comprising or relating to ane of
such matters, would be chargeable under the Act, as amended by Bihar Acts of.
1937 and 1948. Suraj Narain choudhary vs. Collector of Darbhanga, 1958 BLJR
674.)
4. Several instruments used in single transaction of sale, mortgage or
settlement—(1) Where, in the case of any sale, mortgage or settlement, several
instruments are employed for completing the transaction, the principal instrument
only shal.be chargeable with the duty prescribed in Schedule I, *[ or in Schedule 1-
A, as the case may be] for the conveyance, mortgage or settlement, and each of
the other instrument shall be chargeable with a duty of §[ two rupees] *[ if the principal
instrument be chargeable with the duly prescribed in Schedule 1, or with a duty of
one rupee and fifty paise if the principal instrument be chargeable with the duty
prescribed in Schedule 1-A, instead of the duty (if any) for such other document in
Schedule 1 or Schedule 1-A, as the case may be]
(2) The parties may determine for themselves which of the instrument so
employed shall, for the purposes of sub-section (1), be deemed to be the principal
instrument:
Provided that the duty chargeable on the instrument so determined shall be
the highest duty which would be chargeable in respect of any of the said instrument
employed.
5. Instruments relating to several distinct matters— Any instrument
comprising or relaling to several distinct matters shall be chargeable with the
aggregate amount of the duties wilh which separate instruments, each comprising
or relating to one of such matters, would be chargeable under this Act.
Comments & Case-law
impounding of Bond.— The fact that the Executant" had not produced in the
1. Ins. by Bihar Act 21 of 1977 (from 1.12.1977).
2. Ins. by Bihar Act 6 of 1937 (From 1.1.1998)
3. Subs. by ibid.
80] Bihar Stamp Manual [ Secs. 6-7
Court or any Authority and that the period of the Bond had expired or that it was not
barred by limitation cannot save the document from being impounded. Ashokam vs.
Deputy Collector,AIR 1996 Ker. 98.
A Public Officer is not barred from impounding a deed of transfer under section
33. The Stamp Act is a fiscal enactment with the primary object of raising revenue
for the State, Board of Revenue vs. Electronic Industries of India,AIR 1996 SC 616.
Bond.—An "Instrument" creating fresh obligation to pay money to the State
which becomes void upon payment being made, is a "Bond" under the Indian Stamp
Act, and is liable to be assessed to stamp duty, Stafe of Kerala vs. Mcdowell and Co. Ltd. AIR 1995 SC 1445.
Section 27 Provides that the consideration amount, if any, and all other facts
and circumstances affecting the chargeability of Stamp Duty on any “instrument”
and the amount of duty chargeable, shall be fully and truly setforth therein. Board of
Revenue vs. Electronic Industries of India, AIR 1996 SC 616.
—Section 5(2)—Definition is not exhaustive—document containing promise
to pay after a certain period on demand—it is ‘bond’ chargeable under Article 15
Mosst. Radha Devi vs. Dhanik Lall Issar, 1970 PLJR 673.
6. Instruments coming within several descriptions in Schedule 1.— Subject
to the provisions of the last preceding, section, an instrument so framed as to come
within two or more of the descriptions in Schedule 1 shall, where the duties chargeable
thereunder are different, be chargeable only with the highest of such duties:
Provided that nothing in this Act contained shall render chargeable with duty
exceeding one rupee a counterpart or duplicate of any instrument chargeable with
duty and in respect of which the proper duty has been paid.
'[6-A. Payment of Bihar stamp duty on copies, counterparts or duplicates
when that duty has not been paid on the principal or original instrument.—(1)
Motwithstanding anything contained in Section 4 or 6 or any other law, unless it is
proved that the duty, chargeable under the Bihar Stamp (Amendment) Act, 1937,
has been paid—
(a) on the principal or original instruments, as the case may be, or
(b) in accordance with the provisions of this section,
the duty chargeable on an instrument of sale, mortgage or settlement other
than a principal instrument, or on a counterpart, duplicate or copy of any instrument,
shall, if the principal oy original instrument would, when received in Bihar, have been
chargeable, under the Pihar Stamp (Amendment) Act, 1937, with a higher rate of
duty, be the duty with which the principal or original instrument would have been
chargeable under section 19A.
(2) Notwithstanding anything contained in any law, no instrument, counterpart
or duplicate or cony, chargeable with duly under this section, shall be received in
evidence as prope |y Stamped unless the duly, chargeable under this section has
been paid thereon:
Provided that a Court, before which any such instrument, counterpart duplicate
or copy is produced, may, in its discretion, permit the duty, chargeable under this
section, lo be paid thereon and may then receive it in evidence. |
7.Policies of sea-insurance.—*[ xxx}.
1. Ins. by Bihar Act 6 of 1937 (trom 1.1.1938),
2, Sub-sections (1), (2) and (3), repealed by Act 11 of 1963, S.92.
Secs. 8-8A | Indian Stamp Act, 1899 [ Bt
(4) Where any sea-insurance is made for or upon a voyage and also for time or
to extend to or cover any time beyond thirty days after the ship shall have arrived at
her destination and been there moored at anchor, the policy shall be charged with
duty as a policy for or upon a voyage, and also with duty as a policy for time.
8. Bonds, debentures or oher securities issued on loans under Act Xlof
1879.—(1) Notwithstanding anything in this Act, any local authority raising a loan
under the provisions of the Local Authorities Loans Act, 1879 (11 of 1879) or of any
~ other law for the time being in force, by the issue of bonds, debentures or other
securities, shall, in respect of such loan, be chargeable with a duty of one percentum
on the total amount of the bonds, debentures or other securities issued by it, and
such bonds, debentures or other securities need not be stamped, and shall not be
chargeable with any further duty on renewal, consolidation, sub-division or otherwise.
(2) The provisions of sub-section (1) exempting certain bonds, debentures or
other securities from being stamped and from being chargeable with certain further
duty shall apply to the bonds, debentures or other securities of all outstanding loans
of the kind mentioned therein, and all such bonds, debentures or other securities
shall be valid, whether the same are stamped or not:
Provided that nothing herein contained shall exempt the local authority which
has issued such bonds, debentures or other securities from the dwty chargeable in
respect thereof prior to the twenty-sixth day of March, 1897, when such duty has not
already been paid or remitted by order issued by the Central Government.
(3) In the case of wilful neglect to pay the duty required by this section the
local authority shall be liable to forfeit to the Government a sum equal to ten
percentum upon the amount of duty payable, and a like penalty for every month,
after the first month during which the neglect continues.
8A. Securities dealt in depository not liable to stamp duty.—
Notwithstanding anything contained in this Act or any other law for the time being in
force.—
(a) anissuer, by the issue of securities to one or more depositories shall,
in respect of such issue, be chargeable with duty on the total amount
of security issued by it and such securities need not be stamped:
(b) where an issuer issues certificate of security under sub-section (3) of
section 14 of the Depositories Act, 1996 (22 of 1996), on such certificate
duty shall be payable as |s payable on the issue of duplicate certificate
under this Act;
(c) the transfer of—
(i) registered ownership of securities from a person toa depository
or from a depository to a beneficial owner,
(ii) beneficial ownership of securities, dealt with by a depository;
ership of units, such units being units of a Mutual
Fund including units of the Unit Trust of India established under
sub-section (1) of section 3 of the Unit Trust of India Act, 1963
(52 of 1963), dealt with by a depository,
shall not be liable to duty under this Act or any other law for the time being in
force
1. Section BA ins. by Act 22 of 1996, Suc.
10 of 2000, sec. 118.
(iii) beneficial own
30 and Sch. (w.e.t, 20.9.1995) and subs. by Act
82] Bihar Stamp Manual { Secs. 8B.9
ion, the expressions "beneficia, —For the purposes of this section, :
mg ceili Sraveeree! Shall have the meanings respectively assigned is
them in clauses (a), (e) and (f) of sub-section (1) of section 2 of the EPOSitories
Act, 1996 (22 of 1996).
Explanation 2.— For the purposes of this section, the expression—'securities" shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956).]
(8B. Corporatisation and demutualisation schemes and related
instruments not liable to duty.— Notwithstanding anything contained in this Act or any other law for the time being in force,—
(a) a scheme for corporatisation or demutualisation, or both of 4
recognised stock exchange; or
(b) any instrument, including an instrument of, or relating to, transfer of any property, business, asset whether movable or immovable,
contract, right, liability and obligation, for the purpose of, or in connection with, the corporatisation or demutualisation, or both of a recognised stock exchange pursuant to a scheme,
as approved by the Securities and Exchange Board of India under sub-section section 4B of the Securities Contracts (Regulation) Act, 1956, shall not be liable to duty under this Act or any other law for the time being in force.
Explanation.—For the purposes of this section, —
(a) the expressions “corporatisation", "demutualisation” and " have the meanings respectively assigned to them i and (ga) of section 2 of the Securities Contracts ( (b) “Securities and Exchange Board of India" me Exchange Board of India established under se and Exchange Board of India Act, 1992.].
9. Power to reduce, remit or Compound duties.—
(2) of
scheme" shall
n clauses (aa), (ab)
Regulation) Act, 1956:
ans the Securities and
ction 3 of the Securities
(1) The Government may by rule or order published in the Official Gazette ,—
(a) reduce or remit, whether prospectively or retrospectively, in the whole or any part of the territories under its ad ministration the duties with which nts, Or any of the instruments be xeculed by or in favo
or any particular class of instrume
Class, or any instruments when e persons, or by or in favour of any
(b) Provide for the com and in the case of issue
of transfers where the
debentures, bonis or o
any instruments
longing to such
ur of any particular class of members of such class are chargeable, and Position or consolidation of duties of policies of insurance S by any incorporated rompany or other body corporate °{ of re Is a single lransferee, whether incorporated or not] of ther marketable securities. (2) In this section expression "the Government" means— (a) in relation to Stamp duly in respect of bills of Promissory holes, bills of lading, lettors of credit avoir eonentures, Proxies and receipts. and in relation to 96 in List | in he Seventeen ae this + i ee ee nal
Government nale 1e Constitution, the Central 1. Ing, by Act 18 of 2006, woo. 2. Ins. by Act 32 of 1904,
exchange, cheques,
policies of insurance,
114 (Wo. 13.5.2005),
Sec. 9A ] Indian Stamp Act, 1899 [ 83
(b) save as aforesaid, the State Government.
‘[9-A. Notwithstanding anything contained in any rule or orders under clause (a) of section 9 reducing or remitting the duty on an instrument or class of instruments inforce immediately before the date of commencement
of this section, any instrument, so far as it relates to premises of a Co- operative Society registered or deemed to be registered under any law
relating to the Co-operative Society for the time being in force, executed by or on behalf of or in favour of such society or by an officer or member
in favour of another and relating to business of such society shall be
chargeable with duty under this section read with articles indicated in
Schedule 1-A: :
Provided that an instrument relating to mortgage of property by a Housing Co-
operative or a member thereof to be registered in favour of the Bihar State Housing
Co-operative Federation Limited or the Bihar State Rural Housing Co-operative
Federation Ltd. or any financing institution for the loan to be taken from the said
Federation or institution shall not be chargeable with duty:
Provided further that an instrument relating to transfer of premises by a Co-
operative Society to be registered in favour of its members shall not be chargeable
with duty:
Provided also that an instrument to be registered by the Bihar State Housing
Co-operative Federation Ltd. or the Bihar State Rural Housing Co-operative Federation
Ltd. for the loan to be taken by it from a financing institution including the Life
Insurance Corporation of India and a Commercial Bank shall not be chargeable with
duty:
Provided further also that an instrument to be registered in favour of a registered
Co-operative Society by any of its members or by another registered Co-operative
Society or any of its members for loan upto Rs. 50,000 (Rupees fifty thousand) to be
taken for any purpose other than purchase of land shall not be chargeable with duty.
Explanation.—For the purpose of this section, the word ‘premises' means
any land or building or part of a building including any flat, apartment, tenement.
shop or warehouse therein and includes,
(i) gardens, grounds and out houses, if any, appertaining to such building
or part of a building. and
(ii) any fitting affixed to such building or part of a building for the more
beneficial enjoyment thereof."]
Comments and Case law
(Sections 9(1)(a) and 74(b) read with Articles 19(1).(g) and 19(6) of Constitution
of India. Notification of State Government prescribing (sat functions of ‘deed writing’
and ‘trade of stamp vending’ cannot be performed by the same person, challenged.
State Government has full competence under the Act to make Rules to regulate
supply and sale of stamp or stamp papers by prescribing mode and procedure,
conducted by persons through whom sale is to be conducted. State Government
having noticed large scale irregularities, fraud and malpractices in trade and business
of stamp vending issued the notification imposing such restriction in public interest.
Notification cannot be said to be arbitrary and unreasonable under Article 19(6) of
the Constitution. Dasarath Prasad Singh vs. State of Bihar, 1997 (1) PLJR 128.)
1. Ins. by B. (Amdt.) Act, 1988.
ig IPun Insp] 22 Kb $6°9°CL sbte) “969 —on IePReple hlrieb) Bek} & bh fe BER BE
(Phe BY LIP) -/ o00'00% ¢
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(eh& 282 Reh) — 7 DO0'sz
(Rb& ble KP) ~ 7 000'00% ¢
(Rha bus Eb) — 7 000'00% €
(Rh& 2IS2 Ribh) — 7 000'sz
(phe Bue LIP) — / O00‘ 00! ¢
(Rha BY KID) — 7 000‘ o0' ¢
(bh2 202 bIbIR) —/ 900‘ op
(ph 2IN2 Bibh) —/ 000‘05
(pha bE sd) ~ 7 000'00't
(ph2 PIE bp) — 7 000'00' ¢
(pha bab Ir) — 7 000‘00'2
(pha ina Hib Pub bd) — 7 000'0S‘I
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Secs. 9A-10 Indian Stamp Act, 1899 [85
fae aran, freaeq faam, arfirgqear azen- _ - -_
s000-tartamn afar at erm 7g & en yea ufseai Ce ae fen St
fart al HRT AEM Wo Ho 900 fer 18.12.90 F ae warfare afer 1 frefafaa aver Fd eI
1. Tao aa A teal Rar a aa saa ager aa aa aa ae ue & fea F mim aa a 5 feafta ae aria y-as & facta & fre a 50 %o HA
2, WAST F 3-1 att S feu fang faaa ux 2 ufaga
aed Aa dal S yet 4H fHal afar gm am wits eq
aa cra FU ah H am facta w qaqa to Wa
4. Fa Bi yan H oem face aw 2 wfc
5, aan fad a 2 ufaa
ga Bae Toad A feta afirgen do 1713 faerie 14.12.98 facifia at sndt ai
fae aren, Pret fauia, aifirger aen-wAosito-1-3mt-3-201/97-62— aR
way afafrm, 1899 (sifu 2, 1899) st um 9 wa sau (i) & UTS A oi wed
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®
No. 10/Mu. Discount-37/2016-2707, dated the 1st June, 2016.—In exercise of the
powers conferred by clause (a) of sub-section (1) of Section 9 of the Indian Stamp Act, 1899,
the Governor of Bihar is pleased to give discount of 1% (one percent), maximum upto Rs. 2,000/
- (Rupees Two Thousand) only in the amount of payable stamp duty on online payment of stamp
duty under the online registration process.
2. It shall come into force with immediate effect.
S.0. No.-10/Mu-vividh-36/2016-3428 dated 21.7.2016.—In exercise of the powers
conferred by clause (a) of sub-section (1) of Section 9 of the Indian Stamp Act, 1899 the
Governor of Bihar is pleased to fix the stamp duty payable on agreement relating to hypothecation
in favour of public financial institutional/panks for industrial loan under clause 6(2)(a) of Schedule-
1A of Indian Stamp Act, 1899 as follows:-—
So. Loan Amount Payable stamp duty
No.
(a) Up to 10 Crore ¢ 85/- for tho first 30,000/- rupee and
+ 29/- for ovory additional
1. Subs. by Bihar Finance Act No. 11 of 2002
Secs. 10-
86 ] Bihar Stamp Manual [ Secs. 10-10.
@ 10,000/- or part thereof. But maximum}
payable stamp duty will be limited to z
1 lakh.
¢ 85/- for the first 30,000/- rupee ang 1 less than ~ (b) | More than 10 crore Dut le « 29/- for every additional * 10,000/- or 50 crore part thereof. But maximum payable
stamp duty will be limited to % 3 lakh.
To) So GGIs Or Ore than 60 crore % 85/- for the first 30,000/- rupee and
e 29/- for every additional
@ 10,000/- or part thereof. But maximum
payable stamp duty will be limited to z
5 lakh.
No. 10/Mu. Amendment 77/2016-2965 dated the 17th June, 2016—In exercise of the
powers conferred under Clause (a) of Sub-Section (1) of Section 9 of the Indian Stamp Act, 1899, the
Govemor of Bihar is pleased to determine the stamp duty payable as under:—
Type of document Payable Registration Fee
(a) All types of educational loan 0.5% of the loan amount
(b) All types of Health treatment loan 0.5% of the loan amount
02. This notification will come into force with immediate effect.
S.O. No.-10/Ra. Kami-43/2015-1416 dated 14.3.2016.—In exercise of the powers
conferred by clause (a) of sub-section (1) of Section 9 of the Indian Stamp Act 1899 the
Governor of Bihar is pleased to determine As. 200/- (Rupees two hundred) only as the stamp
duty payable on Agreement deeds to be executed for obtaining loans/financial services upto
Rs. 50,000/- for non-agriculture purposes.
2. It shall come into force with immediate effect,
B. Of Stamps and the Mode of Using them [10. Stamp Duties how to be paid.—(1) If otherwise not rovided in this Act, all duties, peel Ula are chargeable, shall be paid and such payment shall be indicated on such instruments, by means of stamps, or though any other i the State Government as follows:- a . AMMEN Se Mey be Prascrmed. Py (a) according to the provisions herewith prescribed in this Act or (b) when no such provision, as the State Government may, by rule, direct. (2) The rules made under sub-section (1) may, among other matters, regulate.— is) in me case of ach kind of instrumant—the description of stamps which may be used; in the case of instr ith j whieh Hay he Used: uments stamped with impressed stamp- the number of stamps
(c) in the case of bills-of-exchange or promi they are written. USES hols: 2110-
whoro the Collectors satisiog that here noumstanding anything contained in section 10 stamps of required denomination are not available, ay may: mica 4 the district a piss authorise the Treasury or Sub-Treasury Officer, as the case ay euly {8' be paid in a IN @vIGENCG Of payment of duly in the Government Treasury or § rt prosuetien 0 it by endorsement on the instruments the amount of duly so paid ic a ey to certily
(2) An endorsement made on any instru wate, : Sirument under - . effect as if the duly of an amount equal to the amount staled the on Esha have ip anid in respect thereof and such payment hag \e endorsement has been pa , boen indi : Stamp in accordance with the requirement of section 10)" On such instrument by means of
1, Subs. by B, Finance Act No. 11 of 2002 —— 2. Ins. by Bihar Finance (Amdl.) Act.1911_
the size of the paper on which
Secs. 11-19 ] Indian Stamp Act, 1899 (87
41. Use of adhesive stamps.—The following instruments may be stamped with adhesive
stamps, namely:—
(a) instruments chargeable with a duty not exceeding ten naye paise except parts of bills-
of exchanges, payable otherwise than on demand and drawn in ier ek
(b) bills-of-exchange and promissory notes drawn or made out of India;
(c) entry as an advocate, vakil or atlorney on the roll of a High Court;
(d) notarial acts; and ;
(e) transfers, by endorsement of shares in any incorporated company or other body
corporate.
12. Cancellation of adhesive stamps.—(1) (a) Whoever affixes any adhesive stamp to
an instrument chargeable with duty which has been executed by any person shall, when
affixing such stamp, cancel the same so that it cannot be used again; and
_ (b) Whoever executes any instrument on any paper bearing an adhesive Stamp shall, at
the time of execution, unless such stamp has been already cancelled in manner aforesaid,
cancél the same so that it cannot be used again.
(2) Any instrument bearing an adhesive stamp which has not been cancelled so that it
cannot be used again, shall so far as such stamp is concerned, deemed to be unstamped.
____{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
13. Instruments stamped with impressed stamps how to be written.— Every
instrument written upon paper stamped with an impressed stamp shall be written in such manner
that the stamp may appear on the face of the instrument and cannot be used for or applied to
any other instrument.
14, Only one instrument to be on same stamp.—No second Instrument chargeable
with duty shall be written upon a piece of stamped paper upon which an instrument chargeable
with duty has already been written:
Provided that nothing in this section shall prevent any endorsement which is duly stamped
or is not chargeable with duty being made upon any instrument for the purpose of transferring
any right created or evidenced thereby, or, of acknowledging the receipt of any money or goods
ihe payment or delivery of which is secured thereby.
Comments & Case-law :
[Undervalued Instrument.— Where neither stamp duty nor registration fee had been
paid on the value of the instrument in question, the Collector has jurisdiction to determine the
market value on consideration and the amount of stamp duty to be imposed. Period of limitation
prescribed for reference to Collector also will have no application in such cases, State of Punjab
vs.Mahajan Sabha,(1996)1 SCC 538.
A lease for more than one year in respect of right to catch fish is an "instrument" under
Article 35 (a) of Schedule IA of the Indian Stamp Act and is liable for poner of stamp duty at
the time of the instrument being registered. Santosh Jaiswal, AIR 1996 SC 207.]
45. Instrument written contrary to section 13 or 14 deemed unstamped.— Every
instrument written in contravention of section 13 or section 14 shall be deemed to be unstamped.
16. Denoting duty—V'iere the duty with which an instrument is chargeable, or its
exemption from duty, depends in any manner upon the duty,actually paid in respect of another
instrument, the payment of such last mentioned duty shall, if application is made in writing to the
Collector for that purpose, and on production of both the instruments, be denoted upon such
first-mentioned instrument by endorsement under the hand of the CollectoExcerpt shown. Open the full act in Lexace.