Section 31

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 31: Adjudication as to propor stamp. — (1 ) When any instrument, whether 31. Adjudication as to propor stamp. — (1 ) When any instrument, whether executed or not and wheather previously stamped or not, is brought to the Collector, 1. Now Rs. 5000/- vido Finance Act No. 2 of 2004 94] 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 31: Adjudication as to propor stamp. — (1 ) When any instrument, whether [ Sec. 30 and the person bringing it applies to have the opinion of that officer as to the duty (if any) with which it is chargeable, and pays a fee of such amount (not exceeding five rupees and not less than fifty naye paise) as the Collector may in each case direct, the Collector shall determine the duty (if any) with which, in his judgment, the instrument is chargeable. (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 ir:strument 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: Provided that — (a) no evidence furnished in pursuance of this section shall be used against any person in any civil proceeding, except in an inquiry as to the duty with which the instiument to which it relates is chargeable; and (b) every pe:son by whom any such evidence is furnished, shall, on payment of the full duty with winich 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. Comments & Case-law [Avoidance of tax is no offence. Evasion of tax is offence. Every man is entitled to arrange his affairs in such a manner as to reduce his tax liability to minimum. Question is of legality. Question of morality does not arise. Urmila Devi vs. State, 2007(3) PLUR 734.]