Uttar Pradesh Stamp Act, 2008 1. Short title, extent and commencement. 2. Definitions. 3. Instruments chargeable with duty. 4. Several instruments used in any single transaction. 5. Instrument relating to several distinct matters. 6. Instruments coming within several descriptions in the Schedule. 7. Payment of the Uttar Pradesh stamp duty on copies, counterparts or duplicates, when that duty has not been paid on the principal or original instrument. 8. Bonds, debentures or other securities issued on loans. 9. Securities dealt in depository not liable to stamp duty. 10. Corporatisation and demutualization Schemes and related instruments not liable to duty. 11. Negotiable warehouse receipts not liable to stamp duty. 12. Power to reduce, remit or compound duties. 13. Duties how to be paid. 14. Payment of stamp duty by cash, by demand draft or by pay order in certain cases. 15. Stock Exchange and Association to deduct stamp duty from Trading member's account. 16. Use of adhesive stamps. 17. Cancellation of adhesive stamps. 18. Instruments' stamped with impressed stamps how to be written. 19. Only one instrument to be on same stamp. 20. Instrument written contrary to Section 18 or Section 19 deemed unstamped. 21. Denoting duty. 22. Instruments executed in the State. 23. Instruments, other than bills and notes executed out of Uttar Pradesh. 24. Payment of duty on instruments liable to be increased duty in Uttar Pradesh under clause (b) and clause (d) of Section 3. 25. Conversion of amount expressed in foreign currencies. 26. Stock and marketable securities-how to be valued. 27. Effect of statement of rate of exchange or average price. 28. Instruments reserving interest. 29. Certain instruments connected with mortgages of marketable securities to be chargeable as agreements. 30. How transfer in consideration of debt, or subject to future payment etc. to be charged. 31. Valuation in case of annuity, etc. 32. Stamp where value of subject-matter is indeterminate. 33. Facts affecting duty to be set forth in instrument. 34. Direction as to duty in case of certain conveyances. 35. Duty by whom payable. 36. Adjudication as to proper stamp. 37. Certificate by Collector. 38. Examination and impounding of instruments. 39. Instruments not duty stamped inadmissible in evidence, etc. 40. Admission of instrument where not be questioned. 41. Admission of improperly stamped instruments. 42. Instruments impounded, how dealt with. 43. Collector's power to stamp instruments impounded. 44. Instruments unduly stamped by accident. 45. Endorsement of instruments on which duty has been paid under Sections 39, 43, 44 or 49. 46. Prosecution for offence against Stamp law. 47. Persons paying duty or penalty may recover same in certain cases. 48. Non-liability for loss of instruments sent under Section 42. 49. Under-valuation of the instrument. 50. Recovery of duties and penalties. 51. Validity of certificate or endorsement in respect of instruments for which higher rate of duty is payable in Uttar Pradesh. 52. Allowance for spoiled stamps. 53. Application for relief under Section 52 when to be made. 54. Allowance in case of printed forms no longer required by corporations. 55. Allowance for misused stamps. 56. Allowance for spoiled or misused stamps-How to be made. 57. Allowance for stamps not required for use. 58. Control of, and statement of case to, Chief Controlling Revenue Authority. 59. Statement of case by Chief Controlling Revenue Authority to High Court. 60. Power of High Court to call for further particulars as to case stated. 61. Procedure in disposing of case stated. 62. Statement of case by other Courts to High Court. 63. Revision of certain decisions of Courts regarding the sufficiency of stamps. 64. Penalty for executing, etc. instrument not duly stamped. 65. Penalty for making false declaration in Clearance List. 66. Penalty for failure to cancel adhesive stamp. 67. Penalty for omission to comply with provisions of Section 33. 68. Recovery of amount of deficit stamp duty. 69. Penalty for breach of rule relating to sale of stamps and for unauthorized sale. 70. Institution and conduct of prosecutions. 71. Jurisdiction of Magistrates. 72. Place of trial. 73. Books, etc. to be open to inspection. 74. Collector's power to call for information, instruments or records. 75. Power to make rules relating to sale of stamps. 76. Power to make rules generally to carry out Act. 77. Delegation of certain powers. 78. Saving as to Court fees. 79. Saving as to certain stamps. 80. Application of Indian Stamp Act, 1899. 81. Savings and Repeal.
The Uttar Pradesh Stamp Act, 2008
(U.P. Act No. 17 of 2010)
UP148
(As passed by the Uttar Pradesh Legislature)
Received the assent of the President on 27.03.2010 and published in the U.P. Gazette, Extraordinary, Part I, Section (Ka), dated 07.04.2010.
An Act to consolidate and amend the law relating to stamp duties in the State of Uttar Pradesh
It is hereby enacted in the Fifty-ninth Year of the Republic of India as follows-
CHAPTER I
Preliminary
(2) It extends to the whole of Uttar Pradesh.
(3) It shall come into force on such date as the State Government may, by notification, appoint in this behalf and different dates may be fixed for different provisions.
| Object & Reasons6 |
(i) "association" - means any association, exchange, organization or body of individuals, whether incorporated or not, established for the purpose of regulating and controlling or conducting business of the sale or purchase of, or making any other transaction relating to, any goods or marketable securities;
(ii) "banker" - means an association, a company or a person who accepts for the purpose of lending or investment deposits of money from the public, repayable on demand or otherwise and withdrawable by cheque, draft, pay-order or otherwise;
(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.
Explanation. - Notwithstanding anything to the contrary contained in any other law for the time being in force, for the purposes of this clause, "attested" in relation to an instrument means attested by one or more witnesses each of whom has seen the executant sign or affix his mark to the instrument, or has seen some other person sign the instrument, in the presence and by the direction of the executant or has received from the executant a personal acknowledgement of his signature or mark or of the signature of such other person, and each of whom has signed the instrument in the presence of the executant; but it shall not be necessary that more than one of the such witnesses shall have been present at the same time, and no particular form of attestation shall be necessary;
(iv) "Chargeable" - means, as applied to an instrument executed, or first executed after the commencement of this Act, chargeable under this Act, and, as applied to any other instruments, chargeable under the law in force in the State when such instrument was executed or, where several persons executed the instrument at different times, first executed.
(v) "Chief Controlling Revenue Authority" - means a member of the Board of Revenue, a Divisional Commissioner or an Additional Divisional Commissioner or an officer of the Stamp Department not below the rank of Deputy Commissioner of Stamps and any such officer as the State Government may, by notification in the Gazette, appoint in this behalf for the whole or any part of the State;
(vi) "Clearance List" -means a list of transactions relating to contracts required to be submitted to the Clearing House of an Association in accordance with the rules or bye-laws of the Association :
Provided that no instrument shall, for the purposes of this Act, be deemed to be a clearance list unless it contains the following declaration signed by the persons dealing in such transactions or on his behalf by a properly constituted attorney, namely-
"I/We hereby solemnly declare that the above list contains a complete and true statement of my/our transactions including crossed out transactions and transactions required to be submitted to the clearing house in accordance with the rules/bye laws of the Association. I/We further declare that no transaction, for which an exemption is claimed under clause (b) of Article 5 (Agreement or its records or memorandum of an agreement) or Article 44 (Note of Memorandum) of the Schedule of this Act, as the case may be, is omitted."
Explanation. - Transaction for the purpose of this clause shall include both sale and purchase.
(vii) "Collector" - means the Chief Officer in-charge of Revenue Administration of a District and includes any officer whom the State Government may, by notification in the Gazette appoint in this behalf; and on whom any or all the powers of the Collector exercisable under this Act are conferred either by such notification or by any other like notification.
(viii) "Conveyance" - includes -
(a) conveyance on sale, or
(b) every instrument, or
(c) every decree or final order of any Civil or Revenue Court,
(d) every order made by the High Court under Section 394 of the Companies Act, 1956 (Act No. 1 of 1956) in respect of the amalgamation or reconstruction of Companies, or
(e) every order made by the Reserve Bank of India under Section 44-A of the Banking Regulation Act, 1949 (Act No. 10 of 1949) in respect of the amalgamation or reconstruction of banking companies,
(f) transfer of share by co-operative housing societies in immovable property of an existing member of such society in favour of an incoming person by means of issuance of new share certificate or by endorsement on the share certificate of the existing member in favour of the incoming person.
by which property, whether movable or immovable, is transferred to, or vested in, any other person,inter vivos, and which is not otherwise specifically provided for by the Schedule.
Explanation. - Notwithstanding anything to the contrary contained in any other provisions of this Act or any other law for the time being in force, the following instruments shall, for the purpose of this clause, be deemed to be an instrument by which property is transferred inter vivos -
(i) An instrument whereby a co-owner, of a property having defined share therein, transfers such share or part thereof to another co-owner of the property; or
(ii) An instrument whereby a partner transfers his share in the property of the partnership business to another partner or to other partners whether separately or together with the transfer of other business or assets on retirement or dissolution, or whereby he contributes to the capital of partnership firm by transferring his right and title to, or interest in any property; or
(iii) An instrument whereby the property of an incorporated company or body corporate is transferred by transfer of its equity shares to another incorporated company or body corporate, or a person or a group of persons.
(ix) "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 that such stamp has been affixed or used in accordance with the law for the time being in force in the State.
(x) "Executed" and "execution" - used with reference to instruments, mean "signed" and "signature".
Explanation. - The terms "signed" and "signature" also include attribution of electronic record as provided under Section 11 of the Information Technology Act, 2000 (Act No. 21 of 2000).
(xi) "Government Security" - means a Government Security as defined in the Public Debt Act, 1944 (Act No. 18 of 1944);
(xii) "Immovable Property" includes land, buildings, hereditary allowances, right of way, lights, ferries, fisheries, or any other benefit arising out of land and things attached to the earth or permanently fastened to anything attached to the earth but does not include standing timber, growing crops oi grass, fruit upon or juice in trees, or beneficial interest of a beneficiary in a trust property.
(xiii) "Impressed stamp" - includes
(a) labels affixed and impressed by the proper officer, or
(b) stamps embossed and engraved on stamped paper.
(c) impression by franking machine, e-stamping or any other such machine as the State Government may be notification in the Gazette specify; or
(d) any mark, seal or endorsement by any agency or person duly authorized by the State Government by notification in the Gazette.
(xiv) "Instrument" - includes every document and record created or maintained in or by an electronic storage and retrieval device, media or electronic record, as defined in clause (f) of sub-section (1) of Section 2 of the Information Technology Act, 2000 (Act No. 21 of 2000), by which any right or liability is, or purports to be, created, transferred, limited, extended, vested, extinguished or recorded, but does not include a bill of exchange, cheque, promissory note, bill of lading, letter of credit, policy of insurance, transfer of share, debenture, proxy and receipt.
(xv) "Instrument of Gift" - includes an instrument whether by way of declaration or otherwise, for making or accepting an oral gift.
(xvi) "Instrument of partition" - means any instrument whereby co-owners of any property divide or agree to divide such property in severalty, and also includes, -
(a) a final order for effecting a partition passed by any Revenue Authority, or any Civil Court;
(b) an award by an arbitrator directing a partition; and
(c) when any partition is effected without executing any such instrument, any instrument or instruments, signed by the co-owners and recording, whether by way of declaration of such partition or otherwise the terms of such partition amongst the co-owners.
(xvii) "Lease" - means a lease of movable or immovable property, and includes -
(b) a kabuliyat or other undertaking in writing, not being a counterpart 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 a lease intended to signify that the application is granted;
(e) any instrument by which mining lease is granted in respect of minor minerals as defined in clause (e) of Section 3 of the Mines and Minerals (Regulation and Development) Act, 1957 (Act No. 67 of 1957),
(f) a decree or final order of any Civil or Revenue Court in respect of a lease.
(xviii) "Marketable security" - means a security of such a description as to be capable of being sold in any stock market in India.
(xix) "Market value" - Market value of property means the value as determined on the basis of the rates fixed by the Collector or the consideration as set forth in the instrument, whichever is higher.
For "Market value of shares" see Explanation (2) to Article 24(e).
(xx) "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;
(xxi) "Paper" - includes vellum, parchment or any other material on which an instrument may be written.
(xxii) "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 specific person to act for and in the name of the person executing it.
(xxiii) "Public Officer" - means a Public Officer as defined in clause (17) of Section 2 of the Code of Civil Procedure, 1908 (Act No. 5 of 1908) and includes every officer working in connection with the affairs of any of the following organizations, namely -
(a) any statutory body or authority constituted under any Uttar Pradesh Act;
(b) a "Financing Bank" or "Central Bank" as defined in clause (k) of Section 2 of the Uttar Pradesh Co-operative Societies Act, 1965 (Act No. 11 of 1966);
(xxiv) "Settlement" - means any non-testamentary disposition in writing, of movable or immovable property made -
(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 disposition, 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.
(xxv) "Schedule" - means the Schedule appended to this Act.
(xxvi) "Soldier" - includes any person below the rank of non-commissioned officer, who is enrolled under the Army Act, 1950 (Act No. 46 of 1950).
(xxvii) "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."
(xxviii) The expressions "Common Roll" and "State Roll" shall have the meanings assigned to them in the Advocates Act, 1961 (Act No. 25 of 1961).
(xxix) The words and expressions not defined in this Act but defined in the Indian Stamp Act, 1899 (Act No. 2 of 1899) shall have the meaning assigned to them in the said Act of 1899.
CHAPTER II
Stamp-Duties
A - Of the liability of Instruments to Duty
(a) every instrument mentioned in the Schedule which, not having been previously executed by any persons, is executed in the State on or after the date of the commencement of this Act,
(b) every instrument (other than a bill of exchange or promissory note) mentioned in the Schedule, which, not having been previously executed by any person, is executed out of the State under Section 23:
Provided that except as otherwise expressly provided in this Act, and notwithstanding anything contained in clauses (a) and (b) of this section or in the Schedule, the following instruments shall, subject to the exemptions contained in the Schedule, be chargeable with duty of the amount indicated in the Schedule as the proper duty therefor, respectively, that is to say -
(a) every instrument mentioned in the Schedule, which, not having been previously executed by any person was executed in Uttar Pradesh:
(i) in the case of instruments mentioned in the Schedule, on or after the date on which the Uttar Pradesh Stamp (Amendment) Act, 1948, came into force; and
(ii) in the case of instruments mentioned in the Schedule, on or after the date on which the Uttar Pradesh Stamp (Amendment) Act, 1952, comes into force;
(b) every instrument mentioned in the Schedule, which, not having been previously executed by any person, was executed out of Uttar Pradesh, -
(i) in the case of instruments mentioned in the Schedule, on or after the date on which the Uttar Pradesh Stamp (Amendment) Act, 1948, came into force; and
(ii) in the case of instruments mentioned in the Schedule, on or after the date on which the Uttar Pradesh, Stamp (Amendment) Act, 1952, comes into force, and relates to any property situated, or to any matter or thing done or to be done in Uttar Pradesh and is received in Uttar Pradesh:
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 property of, or in any ship or vessel registered under the Merchant Shipping Act, 1958 (Act No.44 of 1958) or under Bombay Coasting Vessels Act, 1838 (Act 19 of 1838), or the Indian Registration of Ships Act, 1841 (Act No. 10 of 1841), as amended by subsequent Acts.
(3) any instrument executed by or on behalf of or in favour of, the developer, or unit or in connection with the carrying out of purposes of a Special Economic Zone.
Explanation 1. - For the purposes of this clause the expressions "developer", "special economic zone" and "unit" shall have meaning respectively assigned to them in clause (g), (za) and (zc) of Section 2 of the Special Economic Zones Act, 2005 (Act No. 28 of 2005).
Explanation 2. - Where the amount of duty prescribed in the Schedule contains any fraction of a ten rupee, the proper duty shall be an amount rounded of to the next higher multiple of ten rupee, as hereinafter appearing in the said Schedule.
(2) The parties may determine for themselves, which of the instruments 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 instruments employed.
Provided that nothing in this Act contained shall render chargeable with duty exceeding fifty rupees, a counterpart or duplicate of any instrument chargeable with duty and in respect of which the proper duty has been paid unless it falls within the provisions of Section 7.
(a) on the principal or original instrument, as the case may be, or
(b) in accordance with the provisions of this section;
the duty chargeable on any of the several instruments employed for completing a transaction, other than the principal instrument, or on a counterpart, duplicate or copy of any instrument shall, if the principal or original instrument would, when received in Uttar Pradesh, have been chargeable under this Act, with a higher rate of duty, be the duty with which the principal or original instrument would have been chargeable under Section 24.
(2) Where any instrument is registered in any part of India other than Uttar Pradesh and the instrument relates wholly or partly to any property situated in Uttar Pradesh, the copy of such instrument shall, when received in Uttar Pradesh, be liable to be charged with the difference of stamp duty as on the original under Section 24 to the extent of and in proportion to the consideration or value of the property situated in Uttar Pradesh, and the party liable to pay the stamp duty on the original instrument shall, upon receipt of notice from the registering officer pay the difference in duty within the time allowed.
(3) Notwithstanding anything contained in any other law, no instrument, counterpart, duplicate or copy chargeable with duty under this section shall be received in evidence as properly stamped unless the duty 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 to be paid thereon, and may then receive it in evidence.
(2) The provisions of sub-section (1), exempting certain bonds or securities from being stamped and from being chargeable with certain further duty, shall apply to the bonds or securities other than debentures of all outstanding loans of the kind mentioned therein, and all such bonds, or securities shall be valid, whether the same are stamped or not.
(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 State Government a sum equal to ten per centum upon the amount of duty payable, and a like penalty for every month after the first month during which the neglect continues.
(a) an issuer, 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 (Act No. 22 of 1996) on such certificate duty shall be payable as is payable on the issue of duplicate certificate under this Act;
(i) registered ownership of securities from a person to a depository or from a depository to a beneficial owner,
(ii) beneficial ownership of securities, dealt by a depository;
(iii) beneficial ownership 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 (Act No.,52 of 1963) dealt with a depository,
shall not be liable to duty under this Act or any other law for the time being in force.
Explanation 1. - For the purposes of this section, the expression "beneficial ownership", "depository" and "issuer" shall have the same meanings respectively assigned to them in clauses (a), (e) and (f) of subsection (1) of Section 2 of the Depositories Act, 1996 (Act No. 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 sub-section (2) of Section 2 of the Securities Contracts (Regulation) Act, 1956 (Act No. 42 of 1956).
(a) a scheme for corporatisation or demutualization, or both of a recognized 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 demutualization or both of a recognized stock exchange pursuant to a scheme,
as approved by the Securities and Exchange Board of India under sub-section (2) of Section 4-B of the Securities Contracts (Regulation) Act, 1956 (Act No. 42 of 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" "demutualization" and "scheme" shall have the meanings respectively assigned to them in clauses (aa), (ab) and (ga) of Section 2 of the Securities Contracts (Regulation) Act, 1956 (Act No. 42 of 1956).
(b) "Securities and Exchange Board of India" means the Securities and Exchange Board of India established under Section 3 of the Securities and Exchange Board of India Act, 1992 (Act No. 15 of 1992).
(a) reduce or remit, whether prospectively or retrospectively, in the whole or any part of the State the duties with which any instrument, or any particular class of instruments or any of the instruments belonging to such class, or any instruments when executed by or in favour of any particular class, persons, or by, or in favour of any members of such class, are chargeable; and
(b) provide for the composition or consolidation of duties in the case of issues by any incorporated company or other body corporate or of transfers (where there is a single transferee, whether incorporated or not) of bonds or other marketable securities other than debentures:
Provided that the State Government shall have the power to impose conditions while remitting or reducing stamp duty:
Provided further that in the case of breach of the conditions imposed in the rule or order to reduce or remit stamp duty, the Collector shall have the power to recover the stamp duty so remitted or reduced along with an interest of one per cent for every month or part thereof from the date of execution of the instrument on which stamp duty has been so remitted or reduced after giving a proper opportunity of hearing to the party concerned.
B - Of stamps and the mode of using them
(a) according to the provisions herein contained; or
(b) where in any case no such provision is applicable thereto in accordance with the rules made by the State Government.
(2) The rules made under sub-section (1) may, among other matters, provide for regulating -
(a) the description of stamps which may be used in the case of each kind of instrument,
(b) the numbers of stamps which may be used in the case of instruments stamped with impressed stamps.
(3) Subject to the rules made under sub-section (1), the State Government in this behalf, may authorize any person, body or organization including Post Offices or Banks or any other financial institution to use machines for franking impression of stamps, e-stamping, mark, seal or endorsement, indicating the payment of stamp duty on the instruments.
(2) An endorsement made on any instrument under sub-section (1) shall have the same effect as if the duty of an amount equal to the amount stated in the endorsement has been paid in respect thereof and such payment has been indicated on such instrument by means of stamps in accordance with the requirements of Section 13.
Explanation. - For the purposes of this sub-section, the expressions, "demand draft" or by "pay order" means the demand draft or pay order issued by the State Bank of India constituted under the State Bank of India Act, 1955 (Act No. 23 of 1955) or a corresponding new bank constituted under Section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (Act No. 5 of 1970) or under Section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (Act No. 40 of 1980), or any other bank being a scheduled bank as defined in clause (e) of Section 2 of the Reserve Bank of India Act, 1934 (Act No. 2 of 1934).
Explanation. - For the purposes of this section "stock exchange" means the stock exchange as defined in clause (j) of sub-section (2) of the Securities Contract (Regulation) Act, 1956 (Act No. 42 of 1956).
(a) certificate of enrolment under Section 22 of the Advocates Act, 1961 (Act No. 25 of 1961), issued by the State Bar Council of Uttar Pradesh;
(b) notarial acts; and
(c) transfers, by endorsement of shares in any incorporated company or other body corporate.
(2) 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, cancel the same so that it cannot be used again.
(3) 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, be deemed to be unstamped.
(4) The person required by sub-section (1) or sub-section (2) 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.
Provided that noting 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, the payment or delivery of which is secured thereby.
C - Of the time of stamping instruments
(2) Where any such instrument cannot, with reference to the description of stamp prescribed therefor, 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, by rule prescribe, with a stamp of such value as the person so taking such instrument may require and pay for.
(i) notwithstanding anything contained in the first proviso to Section 3, the amount of duty chargeable on such instrument shall be the amount chargeable on it under the Schedule, less the amount of duty, if any, already paid on it in such States; and
(ii) in addition to the stamps, if any, already affixed thereto, such instrument shall be stamped with the stamps necessary for payment of the amount of duty chargeable on it under clause (i) in the same manner and at the same time and by the same persons as though such instrument where an instrument received in the States for the first time, at the time, when it became chargeable with the higher duty.
D - Of Valuation for Duty
(2) The rate of exchange for conversion of British or any foreign currency into the currency of India prescribed under sub-section (2) of Section 20 of the Indian Stamp Act, 1899 (Act No. 2 of 1899) shall be deemed to be the current rate for the purpose of sub-section (1).
(a) is given upon the occasion of the deposit of any marketable security by way of security for money advanced, or to be advanced by way of loan, or for an existing or further debt, or
(b) makes redeemable or qualifies a duly stamped transfer, intended as a security, of any marketable security,
it shall be chargeable with duty as if it were an agreement or its records or memorandum of an agreement chargeable with duty under clause (h) of Article 5 of the Schedule.
(2) A release or discharge of any such instrument shall only be chargeable with like duty.
Provided that nothing in this section shall apply to any such certificate of sale as is mentioned in Article 18 of the Schedule.
Explanation. - In the case of a sale of property subject to mortgage or other encumbrance, any unpaid mortgage money or money together with the interest (if any) due on the same, shall be deemed to be part of the consideration for the sale:
Provided that where any property subject to a mortgage is transferred to the mortgagee, he shall be entitled to deduct from the duty payable on the transfer, the amount of any duty already paid in respect of the mortgage.
(1) A owes B Rs. 1000. A sells property to B, the consideration being Rs 500 and the release of the previous debt of Rs. 1000. Stamp duty is payable on Rs. 1500.
(2) A sells a property to B for Rs. 500, which is subject to a mortgage to C for Rs 1000 and unpaid interest Rs 200. Stamp duty is payable on Rs 1700.
(3) A mortgaged a house of the value of Rs. 10,000 to B for Rs. 5000. B afterwards buys the house from A Stamp duty is payable on Rs. 10,000 less the amount of stamp duty already paid for the mortgage.
(a) where the sum is payable for a definite period so that the total amount to be paid can be previously ascertained such total amount;
(b) where the sum is payable in perpetuity, or for an indefinite time, not terminable with any life in being at the date of such instrument, or conveyance the total amount which according to the terms of such instrument or conveyance, will or may be payable during the period of twenty years calculated from the date on which the first payment becomes due; and
(c) where the sum is payable for an indefinite time terminating with any life in being at the date of such instrument, or conveyance the maximum amount which will or may be payable as aforesaid, during the period of twelve years calculated from the date on which the first payment becomes due.
Provided that in the case of the lease of a mine, in which royalty, or a share of the produce is received as the rent, or part of rent, it shall be sufficient to have estimated such royalty or the value of such share, for the purposes of stamp duty -
(a) when the lease has been granted by or on behalf of the Government, at such amount or value, as the Collector may, having regard to all the circumstances of the case, have estimated as likely to be payable by way of royalty or share to the Government under the lease;
(b) when the lease has been granted by any other person, at twenty thousand rupees a year;
and the whole amount of such royalty or share, whatever it may be, shall be claimable under such lease :
Provided also that, where proceedings have been taken in respect of an instrument under Section 37 or 46, the amount certified by the Collector shall be deemed to be the stamp actually used at the date of execution.
(2) In the case of instruments relating to immovable property, chargeable with an ad valorem duty on the value of the property, and not on the value set forth, the instrument shall fully and truly set forth the annual land revenue in the case of revenue paying land, the annual rental or gross assets, if any, in the case of other immovable property, the local rates Municipal or other taxes, if any, to which such property may be subject, and any other particulars, which may be prescribed by rules made under this Act.
(2) Where property contracted to be purchased for one consideration for the whole, by two or more persons jointly, or by any person for himself and others, or wholly for others, is conveyed in parts by separate instruments to the persons by or for whom the same was purchased, for distinct parts of the consideration, the conveyance of each separate part shall be chargeable with ad valorem duty in respect of the distinct part of the consideration therein specified or the market value of the property, whichever is higher.
(3) Where a person, having contracted for the purchase of any property but not having obtained a conveyance thereof, contracts to sell the same to any other person and the property is in consequence conveyed immediately to the sub-purchaser, the conveyance shall be chargeable withad valorem duty in respect of the consideration for the sale by the original purchaser to the sub-purchaser or the market value of the property, whichever is higher.
(4) Where a person, having contracted for the purchase of any property, but not having obtained a conveyance thereof, contracts to sell the whole, or any part thereof, to any other person or persons, and the property is in consequence conveyed by the original seller to different persons in parts, the conveyance of each part sold to a sub-purchaser shall be chargeable with ad valoremad valoremduty in respect only of the excess of the original consideration over the aggregate of the considerations paid by the sub-purchaser or the market value of the property, whichever is higher:
Provided that the duty on such last-mentioned conveyance shall in no case be less than one hundred rupees.
(5) Where a sub-purchaser takes an actual conveyance of the interest of the person immediately 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, 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 would be chargeable on a conveyance for the consideration obtained by such original seller, or where such duty would exceed one hundred rupees, with a duty of one hundred rupees.
E - Duty by whom payable
(a) in the case of any instrument described in any of the following Articles of the Schedule, namely -
No. 2 (Administration Bond);
No. 6 (Agreement relating to Deposit of Title-deeds, Pawn, Hypothecation or Pledge),
No. 15 (Bottomry Bond),
No. 27 (Customs Bond),
No. 31 (Further Charge),
No. 33 (Indemnity-bond),
No. 41 (Mortgage-deed),
No. 44 (Note or memorandum),
No. 54 (Respondentia Bond),
No. 55 (Security Bond not being a Mortgage-deed),
No. 56 (Settlement),
No. 60(a) (Transfer of shares in an incorporated company or other corporate),
No. 60(b) (Transfer of debentures, being marketable securities, whether the debenture is liable to duty or not, except debentures provided by Section 8),
No. 60(c) (Transfer of any interest secured by a bond, mortgage-deed or policy of insurance), by the person drawing, making or executing such instrument;
(b) in the case of a conveyance (including a re-conveyance of mortgaged' property) -
by the grantee: in the case of a lease or agreement to lease-by the lessee or intended lessee;
(c) in the case of transfer of one company to another under the order of the High Court under Section 394 of the Companies Act, 1956 (Act No. 1 of 1956), the stamp duty shall be borne by the company which is acquiring or re-constructing the assets and liabilities under sub-clause (d) of clause (viii) of Section 2;
(d) in the case of acquisition of one bank by another bank under the provisions of Section 44-A of the Banking Companies Act, 1949 (Act No. 46 of 1949), the stamp duty shall be borne by the bank which is acquiring or re-constructing the other bank under sub-clause (e) of clause (viii) of Section 2;
(e) in the case of transfer of property by any incorporated company or body corporate by the transfer of equity shares of another company or body corporate, the stamp duty shall be borne by the transferee company which is acquiring under explanation (iii) of clause (viii) of Section 2;
(f) in the case of a counterpart of a lease - by the lessor;
(g) in the case of an instrument of exchange - by the parties in equal shares;
(h) in the case of a certificate of sale - by the purchaser of the property to which such certificate relates;
(i) in the case of an instrument of Gift - by the donee; and
(j) in the case of an instrument of partition - by the parties thereto in proportion to their respective shares in the whole property partitioned, or when the partition is made in execution of an order passed by a Revenue Authority or in Civil Court, or an Arbitrator, in such proportion as such Authority, Court or an Arbitrator directs.
CHAPTER III
Adjudication As To Stamps
(2) For this purpose the Collector may require to be furnished with an abstract of the instrument, and also with such affidavit or other evidence, as he may deem necessary to prove that all the facts and circumstances affecting the chargeability of the instrument with duty, or the amount of the duty with which it is chargeable, are fully and truly set forth therein and may refuse to proceed upon any such application until such abstract and evidence have been furnished accordingly:
(a) no evidence furnished in pursuance of this section shall be used against any person in any civil proceeding, except in an enquiry as to the duty with which the instrument, to which it relates, is chargeable; and
(b) every person by whom any such evidence is furnished, shall, on payment of the full duty with which the instrument to which it relates, is chargeable, be relieved from any penalty which he may have incurred under this Act by reason of the omission to state truly in such instrument any of the facts or circumstances aforesaid.
(a) the Collector determines that it is already fully stamped, or
(b) the duty determines by the Collector under Section 36 or such a sum as, with the duty already paid in respect of the instrument, is equal to the duty so determined, has been paid the Collector shall certify by endorsement on such instrument that the full duty (stating the amount) with which it is chargeable has been paid.
(2) When such instrument is, in his opinion, not chargeable with duty, the Collector shall certify in manner aforesaid that such instrument is not so chargeable.
(3) Any instrument upon which an endorsement has been made under this section, shall be deemed to be duly stamped, or not chargeable with duty, as the case may be, and if chargeable with duty, shall be receivable in evidence or otherwise, and may be acted upon and registered as if it had been originally duly stamped:
Provided that nothing in this section shall authorize the Collector to endorse -
(a) any instrument, other than an instrument chargeable with a duty under clause (b) of the first proviso to Section 3, executed or first executed in Uttar Pradesh and brought to him after the expiration of one month from the date of its execution or first execution, as the case may be;
(b) any instrument chargeable with duty under clause (b) of the first proviso to Section 3, and brought to him, after the expiration of three months from the date on which it is first received in Uttar Pradesh.
CHAPTER IV
Instrument Not Duly Stamped
(2) For that purpose every such person shall examine every instrument so chargeable and so produced or coming before him, in order to ascertain whether it is stamped with a stamp of the value and description required by the law in force in India, when such instrument was executed, or first executed:
(a) nothing herein contained shall be deemed to require any Magistrate, or Judge of a Criminal Court to examine or impound if he does hot think fit so to do, any instrument coming before him in the course of any proceeding other than a proceeding under Sections 125 to 128 and Sections 145 to 148 of the Code of Criminal Procedure, 1973 (Act No. 2 of 1974).
(b) in the case of a Judge of a High Court, the duty of examining and impounding any instrument under this section may be delegated to such officer as the Court appoints in this behalf.
(3) For the purposes of this section, the State Government may, in cases of doubt, determine what officers shall be deemed to be public offices and who shall be deemed to be persons in charge of public officers.
(4) Where deficiency in stamp duty is noticed from the copy of an instrument, the Collector may suo motu or on a reference from any Court, or from the Commissioner of Stamps, or an Additional Commissioner of Stamps, or a Deputy Commissioner of Stamps, or an Assistant Commissioner of Stamps call for the original instrument for the purpose of satisfying himself as to the adequacy of the duty paid thereon, and the instrument so produced before the Collector shall be deemed to have been produced, or come before him in the performance of his functions.
(5) In case the instrument is not produced within the period specified by the Collector, he may require payment of deficit stamp duty, if any, together with penalty under Section 45 on the copy of the instrument:
Provided that no action under sub-section (4) or sub-section (5) shall be taken after a period of four years from the date of execution of the instrument:
Provided further that with the prior permission of the State Government an action under sub-section (4) or sub-section (5) may be taken after a period of four years but before a period of eight years from the date of execution of the instrument.
(a) any such instrument shall be admitted in evidence on payment of the duty with which the same is chargeable, or, in the case of an instrument insufficiently stamped, of the amount required to make up such duty, together with a penalty of an amount not less than one time but not exceeding four times of the amount of proper duty or of the deficient portions thereof;
(b) Where a contract or agreement of any kind is effected by correspondence consisting of two or more letters, and any one of the letters bears the proper stamp, the contract or agreement shall be deemed to be duly stamped;
(c) Nothing herein contained shall prevent the admission of any instrument in evidence in any proceeding in a Criminal Court, other than a proceeding under Sections 125 to 128 and Sections 145 to 148 of the Code of Criminal Procedure, 1973 (Act No. 2 of 1974);
(d) Nothing herein contained shall prevent the admission of any instrument in any Court when such instrument has been executed by or on behalf of the Government or where it bears the certificate of the Collector as provided by Section 37 or any other provision of this Act.
(2) In every other case, the person so impounding an instrument shall send it in original to the Collector.
(a) if he is of opinion that such instrument is duly stamped, or is not chargeable with duty, he shall certify by endorsement thereon that it is duly stamped, or that it is not so chargeable, as the case may be;
(b) if he is of the opinion that such instrument is chargeable with duty and is not duly stamped, he shall require the payment of the amount required to make up the deficiency together with a penalty of an amount not exceeding four times the amount of deficient portion of the proper duty:
Provided that, when such instrument has been impounded only because it has been written in contravention of Section 18 or Section 19, the Collector may, if he thinks fit, remit the whole penalty prescribed by this section:
Provided further that no penalty shall be levied unless the party concerned has been given a reasonable opportunity of being heard.
(2) The Collector shall also require, along with the amount of deficit stamp duty or penalty required to be paid under clause (b) of sub-section (1), the payment of a simple interest at the rate of one per cent per mensem on the amount of deficit stamp duty calculated from the date of execution of the instrument till the date of actual payment:
Provided that the amount of interest under this sub-section shall be recalculated if the amount of deficit stamp duty is varied on appeal or revision or by any order of a competent Court or Authority.
(3) The amount of interest payable under sub-section (2) shall be added to the amount due and be also deemed for all purposes to be part of the amount required to be paid.
(4) Where realization of the deficit stamp duty remained stayed by any order of any Court or Authority and such order of stay is subsequently vacated, the interest referred to in sub-section (2) shall be payable also for any period during which such order of stay remained in operation.
(5) Any amount paid or deposited by, or recovered from or refundable to any person under the provisions of this Act, shall first be adjusted towards the deficit stamp duty or penalty outstanding against him and the excess, if any, shall then be adjusted towards the interest, if any, due from him.
(6) Every certificate under clause (a) of sub-section (1) shall, for the purposes of this Act, be conclusive evidence of the matter stated therein.
(7) Where an instrument has been sent to the Collector, under sub-section (2) of Section 42, the Collector shall, when he has dealt with it as provided by the section, return it to the impounding officer.
(2) Every instrument so endorsed shall thereupon be admissible in evidence, and may be registered and acted upon and authenticated as if it had been duly stamped, and shall be delivered on his application in this behalf to the person from whose possession it came into the hands of the officer impounding it, or as such person may direct:
(a) no instrument which has been admitted in evidence upon payment of duty and a penalty under Section 39, shall be so delivered before the expiration of one month from the date of such impounding, or if the Collector has certified that its further detention is necessary and has not cancelled such certificate;
(b) nothing in this section shall affect Schedule I of Order XXIII of the Code of Civil Procedure, 1908 (Act No. 5 of 1908) Section 144, Clause 3.
Provided that no such prosecution shall be instituted in the case of any instrument in respect of which such a penalty has been paid, unless it appear to the Collector that the offence was committed with an intention of evading payment of the proper duty.
(2) For the purpose of such recovery, any certificate granted in respect of such instrument under this Act shall be conclusive evidence of the matters therein certified.
(3) Such amount may, if the Court thinks fit, be included in any order as to costs in any suit or proceeding to which' such persons are parties and in which such instrument has been tendered in evidence. If the Court does not include the amount in such order, no further proceedings for the recovery of the amount shall be maintainable.
(2) When any instrument is about to be so sent, the person from whose possession it came into the hands of the person impounding the same, may require a copy thereof to be made at the expense of such first-mentioned person and authenticated by the person impounding such instrument.
(b) When the deficit stamp duty required to be paid under clause (a) is paid in respect of any instrument and the instrument is presented again for registration, the Registering Officer shall certify by endorsement thereon, that the deficit stamp duty has been paid in respect thereof and the name and the residence of the person paying them and register the same.
(c) Notwithstanding anything contained in any other provisions of this Act, the deficit stamp duty may be paid under clause (a) in the from of impressed stamps or otherwise, containing such declaration as may be prescribed.
(d) If any person does not make the payment of deficit stamp duty after receiving the order referred to in clause (a) and presents the instrument again for registration, the Registering Officer shall, before registering the instrument, refer the same to the Collector, for determination of the market value of the property and the proper duty payable thereon.
(2) On receipt of a reference under such-section (1), the Collector shall, after giving the parties a reasonable opportunity of being heard and after holding an enquiry in such manner as may be prescribed by rules made under this Act, determine the market value of the property which is the subject of such instrument and the proper duty payable thereon.
(3) The Collector may, suo motu, or on a reference from any Court or from the Commissioner of Stamps or an Additional Commissioner of Stamps or from a Deputy Commissioner of Stamps or from an Assistant Commissioner of Stamps or any officer authorized by the State Government in that behalf, within four years from the date of registration of any instrument on which duty is chargeable on the market value of the property, not already referred to him under sub-section (1), call for and examine the instrument for the purpose of satisfying himself as to the correctness of the market value, of the property which is the subject of such instrument and the duty payable thereon, and if, after such examination, he has reason to believe that market value of such property has not been truly set forth in such instrument, he may determine the market value of such property and the duty payable thereon:
Provided that, with the prior permission of the State Government, an action under this sub-section may be taken after a period of four years but before a period of eight years from the date of registration of the instrument on which duty is chargeable on the market value of the property.
Explanation. - The payment of deficit stamp duty by any person under any order of the Registering Officer under sub-section (1) shall not prevent the Collector from initiating proceedings on any instrument under subsection (3).
(4) If on enquiry under sub-section (2) and examination under subsection (3) the Collector finds the market value of the property -
(i) truly set forth and the instrument duly stamped, he shall certify by endorsement that it is duly stamped and return it to the person who made the reference;
(ii) Not truly set forth and the instrument not duly stamped, he shall require the payment of the amount required to make up the deficiency in the same, together with a penalty of an amount not exceeding four times the amount of deficient portion of the proper duty.
(5) The Collector shall also require along with the deficit stamp duty or penalty required to be paid under clause (ii) of sub-section (4), the payment of a simple interest at the rate of one per cent per mensem on the amount of deficit stamp duty calculated from the date of the execution of the instrument till the date of actual payment:
Provided that the amount of interest under the sub-section shall be recalculated if the amount of deficit stamp duty is varied on appeal or revision or by any order of a competent Court or Authority.
(6) The amount of interest payable under sub-section (5) shall be added to the amount due and be also deemed for all purposes to be part of the amount required to be paid.
(7) Where realization of the deficit stamp duty remained stayed by any order of any Court or Authority and such order of stay is subsequently vacated, the interest referred to in sub-section (5) shall be payable also for any period during which such order of stay remained in operation.
(8) Any amount paid or deposited by or recovered from, or refundable to, a person under the provisions of this Act, shall first be adjusted towards the deficit stamp duty or penalty outstanding against him and the excess, if any, shall then be adjusted towards the interest, if any, due from him.
(9) The instrument produced before the Collector under sub-section (2) or under sub-section (3) shall be deemed to have come before him in the performance of his functions.
(10) In case the instrument is not produced within the period specified by the Collector, he may require payment of deficit stamp duty, if any, together with penalty on the copy of the instrument in accordance with the procedure as laid down in sub-sections (2) and (4).
CHAPTER V
Allowances For Stamps In Certain Cases
(a) the stamp on any paper inadvertently and undesignedly spoiled, obliterated or by error in writing or any other means rendered unfit for the purpose intended before any instrument written thereon is executed by any person.
(b) the stamp on any document which is written out wholly or in part, but which is not signed or executed by any party thereto;
(c) the stamp used for an instrument executed by any party thereto which -
(i) has been afterwards found to be absolutely void in law from the very beginning;
(ii) has been afterwards found unfit, by reason of any error or mistake therein, for the purpose originally intended;
(iii) by reason of the death of any person by whom it is necessary that it should be executed, without having executed the same, or of the refusal of any such person to execute the same, cannot be completed so as to effect the intended transaction in the form proposed;
(iv) for want of the execution thereof by some material party, and his inability or refusal to sign the same, is a fact incomplete and insufficient for the purpose for which it was intended;
(v) by reason of the refusal of any person to act under the same, or to advance any money intended to be thereby secured, or by the refusal or non-acceptance of any officer thereby granted, totally fails of the intended purpose;
(vi) becomes useless in consequence of the transaction intended to be thereby effected being effected by some other instrument between the same parties and bearing a stamp of not less value;
(vii) is deficient in value and the transaction intended to be thereby effected has been effected by some other instrument between the same parties and bearing a stamp of not less value;
(viii) is inadvertently and undesignedly spoiled, and in lieu whereof another instrument made between the same parties and for the same purpose is executed and duly stamped:
Provided that, in the case of an executed instrument, no legal proceeding has been commenced in which the instrument could or would have been given or offered in evidence and that the instrument is given up to be cancelled.
Explanation. - The Certificate of the Collector under Section 37 that the full duty with which an instrument is chargeable has been paid is an impressed stamp within the meaning of this section.
(a) in the cases mentioned in sub-clause (v) of clause (c), within two months of the date of the instrument;
(b) in the case of a stamped paper on which no instrument has been executed by any of the parties thereto, within six months after the stamp has been spoiled;
(c) in the case of a stamped paper in which an instrument has been executed by any of the parties thereto, within six months after the date of the instrument, or, if it is not dated, within six months after the execution thereof by the person by whom it was first or alone executed:
(a) when the spoiled instrument has been for sufficient reasons sent out of India, the application may be made within six months after it has been received back in India;
(b) when, from unavoidable circumstances, any instrument for which another instrument has been substituted, cannot be given up to be cancelled within the aforesaid period, the application may be made within six months after the date of execution of the substituted instrument.
Provided that such authority is satisfied that the duty in respect of such stamped paper has been duly paid.
(b) When any stamp used for an instrument has been inadvertently rendered useless under Section 19, owing to such instrument having been written in contravention of the provisions of Section 18, the Collector may, on application made within six months after the date of the instrument, or if it is riot dated, within six months after the execution thereof by the person by whom it was first or alone executed, and upon the instrument, if chargeable with duty, being re-stamped with the proper duty, cancel and allow as spoiled the stamp so misused or rendered useless.
(a) other stamps of the same description and value; or
(b) if required and he thinks fit, stamps of any other description to the same amount in value; or
(c) at his discretion, the same value in money, deducting ten paise for each rupee or fraction of a rupee.
(a) that such stamp or stamps were purchased by such person with a bona fide intention to use them;
(b) that he has paid the full price thereof; and
(c) that they were so purchased within the period of six months next preceding the date on which they were so delivered:
Provided that, where the person is a licensed vendor of stamps, the Collector may, if he thinks fit, make the repayment of the sum actually paid by the vendor without any such deduction as aforesaid.
CHAPTER VI
Reference, Revision And Appeal
Notwithstanding anything contained in any other provisions of this Act, any person including the Government aggrieved by an order of the Collector under Section 12, clause (a) of the first proviso to Section 32, Chapter IV, Chapter V and Chapter VIII may, within 60 days from the date of receipt of such order prefer an appeal against such order to the Chief Controlling Revenue Authority, who shall, after giving the parties a reasonable opportunity of being heard, consider the case and pass such order thereon as he thinks just and proper and the order so passed shall be final:
Provided that no application for stay of recovery of any disputed amount of stamp duty including interest thereon or penalty shall be entertained unless the applicant has furnished satisfactory proof of the payment of not less than one-third of such disputed amount:
Provided further that where the Chief Controlling Revenue Authority passes an order for the stay of the recovery of any stamp duty, interest thereon or penalty, or for the stay of the operation of any order appealed against and such order results in the stay of recovery of any stamp duty, interest thereon or penalty, such stay order shall not remain in force for more than thirty days unless the appellant furnishes adequate security to the satisfaction of the Collector concerned for the payment of the outstanding amount.
(2) If any Collector, acting under Section 36, Section 43 or Section 44, feels doubt as to the amount of duty with which any instrument is chargeable, he may draw up a statement of the case, and refer it, with his own opinion thereon, for the decision of the Chief Controlling Revenue Authority.
(3) The Authority referred to in sub-section (2) shall consider the case and send a copy of its decision to the Collector who shall proceed to assess and charge the duty (if any) in conformity with such decision.
(4) Where any order of Collector is partially altered or quashed by the Chief Controlling Revenue Authority, the Collector shall have the power to refund the excess amount of stamp duty, penalty or interest paid under the said order.
(2) Every such case shall be decided by not less than three Judges of the High Court to which it is referred, and in case of difference, the opinion of the majority shall prevail.
(2) The Court shall send to the Revenue Authority by which the case was stated, a copy of such judgment under the seal of the Court and the signature of the Registrar; and the Revenue Authority shall, on receiving such copy, dispose of the case conformably to such judgment.
(2) Such Court shall deal with the case as if it had been referred under Section 59, and send a copy of its judgment under the seal of the Court and the signature of the Registrar to the Chief Controlling Revenue Authority and other like copy to the Judge making the reference, who shall, on receiving such copy, dispose of the case conformably to such judgment.
(3) References made under sub-section (1), when made by a Court subordinate to a District Court, shall be made through the District Court, and, when made by any subordinate Revenue Court, shall be made through the Court immediately superior.
(2) If such Court, after such consideration, is of opinion that such instrument should not have been admitted in evidence without the payment of duty and penalty under Section 40, or without the payment of a higher duty and penalty than those paid, it may record a declaration to that effect, and determine the amount of duty with which such instrument is chargeable, and may require any person in whose possession or power such instrument then is, to produce the same, and may impound the same when produced.
(3) When any declaration has been recorded under sub-section (2), the Court recording the same shall send a copy thereof to the Collector, and, where the instrument to which it relates has been impounded or is otherwise in the possession of such Court, shall also send him such instrument.
(4) The Collector may thereupon, notwithstanding anything contained in the order admitting such instrument in evidence, or in any certificate granted under Section 45, or in Section 46, prosecute any person for any offence against the Stamp law which the Collector considers him to have committed in respect of such instrument:
(a) no such prosecution shall be instituted where the amount (including duty and penalty) which, according to the determination of such Court, was payable in respect or the instrument under Section 39, is paid to the Collector, unless he thinks that the offence was committed with an intention of evading payment of the proper duty;
(b) except for the purposes of such prosecution, no declaration made under this section shall affect the validity of any order admitting any instrument in evidence, or of any certificate granted under Section 45.
CHAPTER VII
Criminal Offences And Procedure
Provided that, when any penalty has been paid in respect of any instrument under Section 39, Section 43, or Section 49, the amount of such penalty shall be allowed in reduction of the fine (if any) subsequently imposed under this section in respect of the same instrument upon the person who paid such penalty.
(2) If a share warrant is issued without being duly stamped, the company issuing the same and also every person who, at the time when it is issued, is the Managing Director or Secretary or other principal officer of the company, shall, on conviction be punished with fine which may extend to five hundred rupees.
(3) No person shall be prosecuted under sub-section (1) or sub-section (2) in respect of an instrument which was produced in Court and which was admitted after a decision by the Court that the said instrument was duly stamped or that no stamp was required.
(a) executes any instrument in which all the facts and circumstances required by Section 33 to be set forth in such instrument are not fully and truly set forth; or
(b) being employed or concerned in or about the preparation of any instruments, neglects or omits fully and truly to set forth therein all such facts and circumstances; or
(c) does any other act calculated to deprive the Government of any duty or penalty under this Act,
shall be punishable with imprisonment for a term which may extend to there months or with fine which may extend to ten thousand rupees, or with both.
(2) Upon such recovery the Collector shall thereupon certify by endorsement on that instrument that proper duty or penalty, as the case may be, has been levied in respect thereof;
(b) Any person not so appointed who sells or offers for sale stamp (other than a paise or five paise adhesive stamp),
shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to five hundred rupees, or with both.
(2) The Chief Controlling Revenue Authority, or any officer generally or specially authorised by it in this behalf, may stay any such prosecution or compound any such offence.
(3) The amount of any such composition shall be recoverable in the manner provided by Section 50.
CHAPTER VIII
Supplemental Provisions
Explanation. - For the purpose of this sub-section the expression "person concerned" includes a body of individuals, any statutory authority or association, whether incorporated or not.
(2) If any person, on being required under sub-section (1) by the Collector or the Commissioner of Stamps, Additional Commissioner of Stamps, Deputy Commissioner of Stamps or Assistant Commissioner of Stamps or the authorised officer, wilfully fails to produce the required instrument or other record as aforesaid without any sufficient cause, the Collector or the Commissioner of Stamps, Additional Commissioner of Stamps, Deputy Commissioner of Stamps or Assistant Commissioner of Stamps may direct such person to pay an amount, by way of penalty, a sum not exceeding rupees five thousand:
Provided that no such order under this sub-section shall be passed by the Collector or the Commissioner of Stamps, Additional Commissioner of Stamps, Deputy Commissioner of Stamps or Assistant Commissioner of Stamps unless the person on whom such penalty is proposed to be imposed is given a reasonable opportunity of being heard in the mater:
Provided further that the order passed under this sub-section shall be subject to an appeal to the Chief Controlling Revenue Authority within a period of thirty days or within such extended time as may be allowed in that regard, who shall, after giving the appellant a reasonable opportunity of being heard, pass such order thereon as he thinks just and proper and the order so passed shall be final.
(a) the supply and sale of stamps, e-stamp, stamp by franking machine, by use of Internet or any other machine and stamped papers;
(b) the persons by whom alone such sale is to be conducted; and
(c) the duties and remuneration of and the fees chargeable from such person:
Provided that such rules shall not restrict the sale of ten paise or five paise adhesive stamps.
(a) all or any of the powers conferred on it by clause (v) of Section 2, sub-section (3) of Section 38, sub-section (1) of Section 70, Section 75 to the Chief Controlling Revenue Authority; and
(b) all or any of the powers conferred on the Chief Controlling Revenue Authority by Section 12, sub-section (1) of Section 58, sub-section (2) of Section 70 and Section 74 to such subordinate revenue authority or any officer of the Stamp and Registration Department not below the rank of Deputy Commissioner of Stamps, as may be specified in the notification.
Provided that the repeal hereby shall not affect, -
(i) any right, title, obligation or liability already acquired, accrued or incurred or anything done or suffered;
(ii) any legal proceedings or remedy in respect of any such right, title, obligation or liability, under the provisions of the enactments hereby repealed and any such proceeding may "be instituted, continued and disposed of and any such remedy may be enforced as if this Act had not been passed.
(2) Any appointment, notification, notice, order, rule or form made or issued under any of the enactments hereby repealed shall be deemed to have been made or issued under the provisions of this Act, insofar as such appointments, notifications, notice, order, rule or form is not inconsistent with the provisions of this Act and shall continue in force, unless and until it is superseded by an appointment, notification, notice, order, rule or form made or issued under this Act.
(3) All stamps in denominations of annas of four or multiples thereof shall be deemed to be stamps of the value of twenty-five naya paise or, as the case may be, multiples thereof and valid accordingly.
Schedule
[See Section 3 and Section 80]
Stamp duty on Instruments under the Uttar Pradesh Stamp Act, 2008
| Description of Instrument | Proper stamp duty | |
| 1. | Acknowledgment, of debt exceeding one thousand rupees in amount or value, written or signed by, or on behalf of, a debtor in order to supply evidence of such debt in any book (other the banker's passbook), or on a separate piece of paper when such book or paper is left in the creditor’s possession: Provided that such acknowledgment does not contain any promise to pay the debt or any stipulation to pay interest or to deliver any goods or other property. | Ten rupees |
| 2. | Administration Bond, including a bond given under Section 291, 375 and 376 of the Indian Succession Act, 1925 (Act No. 39 of 1925) or Section 6 of the Government Savings Banks Act, 1873 (Act No. 5 of 1873) | The same duty as Bond (No. 14) subject to a maximum of two hundred rupees. |
| 3. | Adoption deed, that is to say, any instrument (other than a Will) recording an adoption or conferring or purporting to confer an authority to adopt Advocate, see Entry as an Advocate (No. 17) | One hundred rupees |
| 4. | Affidavit, Including an affirmation or declaration in the case of persons by law allowed, affirming or declaring instead of swearing | Ten rupee |
| Exemptions | ||
| Affidavit or declaration in writing when made- (a) as a condition of enrolment under the Indian Army Act, 1950 (Act No. 46 of 1950) the Indian Air Force Act, 1950 (Act No. 45 of 1950) or the Navy Act, 1957 (Act No. 62 of 1957), or (b) for the sole purpose of enabling any persons to receive any pension or charitable allowance | ||
| 5. | Agreement or its Records or Memorandum of an Agreement | |
| (a) if relating to the sale of a bill of exchange; | One rupee for every rupees 10,000 or part thereof | |
| (b) if relating to the purchase or sale of a Government security, | ||
| (c) if relating to the purchase or sale of shares, scrips, stocks, bonds, debentures, debenture stocks, or any other marketable security of a like nature in or of any incorporated company or other body corporate- | Fifty paise for every rupees 1,00,000 or part thereof of the value of the security at the time of its purchase or sale, as the case may be | |
| (i) when such agreement or memorandum of an agreement is with or through a member or between members of Stock Exchange recognized under the Securities Contracts (Regulation) Act, 1956 (XLII of 1956) | One rupee for every rupees 10,000 or part thereof of the value of the security at the time of its purchase or sale, as the case may be | |
| (ii) in any other case; | One rupee for every rupees 10,000 or part thereof of the value of the security at the time of its purchase or sale, as the case may be | |
| (d)(i) if relating to the purchase or sale of cotton | One rupee for every rupees ten thousand or part thereof of the value of cotton, | |
| (ii) if relating to the purchase or sale of bullion or spices | One rupee for every rupees ten thousand or part thereof of the value of silver or gold or sovereigns or spices, as the case may be, | |
| (iii) if relating to the purchase or sale of oilseeds; | One rupee every 10,000 or part thereof of the value of yarn of any kind, non-mineral oils or spices of any kind, as the case may be | |
| (iv) if relating to the purchase or sale of yarn of any kind, non-mineral oils or spices of any kind | One rupee every rupees 10,000 or part thereof of the value of yarn of any kind, non-mineral oils or spices of any kind, as the case may be | |
| Explanation | ||
| Any duty paid under Article 22, 44, or 52, as the case may be, shall be adjusted against the duty chargeable under clauses (6), (c), (d), (i), (ii), (iii) and (iv) | ||
| (e) if relating to the sale of an immovable property where every one possession is not admitted to have been delivered, nor is agreed to be delivered without executing the conveyance: | Twenty rupees for every one thousand rupees or part thereof, on the amount of consideration as set forth in the instrument | |
| Provided that when conveyance in pursuance of such agreement is executed, within three years from the date of execution of the said agreement, the duty paid under this clause, in excess of the duty payable under clause (c) shall be adjusted towards the total duty payable on the conveyance |