I was studying Indian Stamps Act today and I am having a doubt regarding Section 4(2) read with proviso to it.
Section 4:
(1) Where, in the case of any sale, mortgage or settlement, several instruments are employed for completing the transaction, the principal instrument only shall be chargeable with the duty prescribed in Schedule I, for the conveyance, mortgage or settlement, and each of the other instruments shall be chargeable with a duty of one rupee instead of the duty (if any) prescribed for it in that Schedule.
(2) The parties may determine for themselves which of the instrument so employed shall, for the purpose 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.
If anyonecould explain me the essence of Section 4(2). On one hand it says that parties may themselves determine the principal instrument whereas proviso reads that duty determined should be the highest duty.
Or am I missing something here?
Thanks
