Section 19

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. | Section 19: Bills and notes drawn out of Indin 19. Bills and notes drawn out of Indin.—The first holder in India of any bill of exhange payable otherwise than on demand, or promissory note drawn of made out of India shall, before he presents the samo for acceptance or payment, or endorses, transfers or otherwise negotiates the same in India, aflix thereto, the proper stamp and cancel the same: Provided that— 88] [ Secs. 19A-29 . te comes into the hands of ime any such bill of exchange or nole , (a) Li aes als i proper adhesive stamp 's affixed thereto and cancelled ee scribed b section 12 and such holder has no reason to believe that shel beg Chapter VIII: SUPPLEMENTAL PROVISIONS 73. Books, etc. to be open to inspection.— Every public officer having in his custody any registers, books, records, papers, documents or proceedings, the inspection whereof may tend to secure any duty, or to prove or lead to the discovery of any fraud or omission in relation to any duty, shall at all reasonable times permit any person authorised 'in writing by the Collector to inspect for such purpose the registers, books, papers, documents and proceedings, and to take such notes and extracts as they may deem necessary, without fee or charge. 74. Power to make rules relating to sale of stamps.—The State Government may make rules for regulating— (a) the supply and sale of stamps and stamped papers, (b) the persons by whom alone such sale is to be conducted, and (c) the duties and remuneration of such persons: Provided that such rules shall not restrict the sale of ten naye paise or five naye paise adhesive stamps. {S.O. 1367 dated the 11th October, 1982— In exercise of the powers conferred by clause (a) of sub-section (1) of Section 9 and Section 74 of the Indian Stamp Act, 1899 (Act no. 2 of 1899). the Governor of Bihar is ploased to make rules that the duties of Stamp vendors and duties of Katibs (Deed writers) must not be performed by the same individual, 2. In view of the cleanliness of the Administration and for checking forgery and defaications it is highly desirable that the duties of a stamp vendor and that of deed writer should not be performed by the same person or individual, 3. This notification will come in force at once. [There is another notification also | Section 19: Certificate 19. Certificate of other document, evidenciny the right or title of the holder thereof, or any other person, either to any shares, scrip or stock in or of any incorporated company or other body corporate, or to become proprietor of shares, scrip or stock in or of any such company or body. N.B.—If a bill of lading is drawn in parts, the proper stamp there of must be borne by each one of the set. The same duty as a Bond (No. 15) for the same amount. Two annas. 1. Subs. by $.0. 130 (E) dated 28.1,2004 (w.e.f. 1.9.2004) 2. Now see Indian Ports Act, 1908 Schedule | } Indian Stamp Act, 1899 { 115 Description of Instrument Proper Stamp-duty (27. Debenture (whether a mortgage debenture or not), being a marketable security transferable— (a) by endorsement or by a separate instrument of transfer- where the amount or value does not exceed Rs.10; Ten paise. where it exceeds Rs. 10 and does not exceed Rs.50; Twenty paise. Ditto Ditto 100: Thirty-five paise. Ditto Ditto 200; Seventy-five paise. Ditto Ditto 300; One rupee ten paise. Ditto Ditto 400; One rupee fifty paise. Ditto Ditio 500; One rupee eighty-five paise. Ditto Ditto 600; Two rupee twenty-five paise. Ditto Ditto 700; Two rupees sixty paise. Ditto Ditto 800; Three rupees. Ditto Ditto 900; Three rupee forty paise. Ditto 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. | Section 19: Bills and notes drawn out of Indin therwise than by the person and at the time was affixed or cancelled 0 reauited Dy this Act, such stamp shall so far as relates to such holder, be deemed to have been duly affixed and cancelled; (b) nothing contained in this proviso shall relieve any person from any penalty incurred by him for omitting to affix orcancela stamp. Comments and Case-law here a promissory note in question was executed out side India and had been sropelly siamaad rageordanies with law applicable thereto tie place of execution, in suit by the promissory himself file in India for recovery 0 {he amount due, the rejection of the objection regarding inadmissibility of the said instruments in evidence was proper as the promissory himself had instituted the suit and there was no endorsement etc, and further there was no occasion of affixing the proper stamp and their cancellation does not arise. Thus this section is not attractive. A. Kanju Swami vs. V.V.K. Swami, AIR 1988 Mad 336. Sections 18, 32 and 33—in a Case where an unstamped document (other than bill of exchange) is produced as evidence, within three months of execution, the stamp duty can be collected without impounding and without penalty—if the document is sought to be used as evidence beyond three months, the bar of three months shall not apply, and the document can be impounded u/s 33 and stamp duty and penalty are levied, even after expiry of three months. (Malaysian Airlines System Bhd vs. M/s Stic Travels (P) Ltd.) 2001 (1) PLUR (SC) 195. Chapter VIII: SUPPLEMENTAL PROVISIONS 73. Books, etc. to be open to inspection.— Every public officer having in his custody any registers, books, records, papers, documents or proceedings, the inspection whereof may tend to secure any duty, or to prove or lead to the discovery of any fraud or omission in relation to any duty, shall at all reasonable times permit any person authorised 'in writing by the Collector to inspect for such purpose the registers, books, papers, documents and proceedings, and to take such notes and extracts as they may deem necessary, without fee or charge. 74. Power to make rules relating to sale of stamps.—The State Government may make rules for regulating— (a) the supply and sale of stamps and stamped papers, (b) the persons by whom alone such sale is to be conducted, and (c) the duties and remuneration of such persons: Provided that such rules shall not restrict the sale of ten naye paise or five naye paise adhesive stamps. {S.O. 1367 dated the 11th October, 1982— In exercise of the powers conferred by clause (a) of sub-section (1) of Section 9 and Section 74 of the Indian Stamp Act, 1899 (Act no. 2 of 1899). the Governor of Bihar is ploased to make rules that the duties of Stamp vendors and duties of Katibs (Deed writers) must not be performed by the same individual, 2. In view of the cleanliness of the Administration and for checking forgery and defaications it is highly desirable that the duties of a stamp vendor and that of deed writer should not be performed by the same person or individual, 3. This notification will come in force at once. [There is another notification also | Section 19: Certificate Ditto 1000; Three rupee seventy-five paise. and for every Rs. 500 or part thereof in excess of Rs. 1,000; One rupee eighty-five paise. (b) by delivery— where the amount or value of the consideration for such debenture as set forth therein does not exce- ed Rs. 50; where it exceeds Rs. 50 but does not exceed Rs.100 Thirty-five paise. Seventy-five paise Ditto Ditto 200; One rupee fifty paise. Ditto Ditto 300; Two rupees twenty-five paise. Ditto Ditto 400; Three rupees. Ditto Ditto 500; Three rupees seventy-five paise Ditto Ditto 600; Four rupees fifly paise. Ditto Ditto 700; Five rupees twenty-five paise. Ditto Ditlo 800; Six rupees. Ditto Ditlo 900; Six rupees seventy-five paise, Ditto Dillo 1000; Seven rupees fifty paise. and for every Rs. 500 or part thereof in excess of Rs. 1,000: Three rupees sevenly- five paise.] 1. Subs. by S.0. 130 (E) dated 28.1.2004 (w.e.f. 1.3.2004) 116] Chapter VIII: SUPPLEMENTAL PROVISIONS 73. Books, etc. to be open to inspection.— Every public officer having in his custody any registers, books, records, papers, documents or proceedings, the inspection whereof may tend to secure any duty, or to prove or lead to the discovery of any fraud or omission in relation to any duty, shall at all reasonable times permit any person authorised 'in writing by the Collector to inspect for such purpose the registers, books, papers, documents and proceedings, and to take such notes and extracts as they may deem necessary, without fee or charge. 74. Power to make rules relating to sale of stamps.—The State Government may make rules for regulating— (a) the supply and sale of stamps and stamped papers, (b) the persons by whom alone such sale is to be conducted, and (c) the duties and remuneration of such persons: Provided that such rules shall not restrict the sale of ten naye paise or five naye paise adhesive stamps. {S.O. 1367 dated the 11th October, 1982— In exercise of the powers conferred by clause (a) of sub-section (1) of Section 9 and Section 74 of the Indian Stamp Act, 1899 (Act no. 2 of 1899). the Governor of Bihar is ploased to make rules that the duties of Stamp vendors and duties of Katibs (Deed writers) must not be performed by the same individual, 2. In view of the cleanliness of the Administration and for checking forgery and defaications it is highly desirable that the duties of a stamp vendor and that of deed writer should not be performed by the same person or individual, 3. This notification will come in force at once. [There is another notification also | Section 19: Certificate [ Schedule | Description of Instrument Proper Stamp-duty Explanation.—The term "Debenture" includes any interest coupons attached thereto but the amount of such coupons Shall not be included in estimating the duly. Exemption A debenture issued by an incorporated company or other body corporate in terms of a registered mortgage-deed, duly stamped in respect of the full amount of debentures to be issued thereunder, whereby the company or body borrowing makes over, in whole or in part, their property to trustees for the benefit of the debenture holders: Provided that the debentures so issued are expressed to be issued in terms of the said mortgage-deed. See aslo Letter of Allotment of Shares (No.36)