Affixing revenue stamp of rs 1/-
YASHPAL RAWAT
(Querist) 17 October 2014
This query is : Resolved
Kindly confirm whether Affixing of revenue stamp is mandatory in Govt. Organisation where payment more than Rs 5000/- is made through cheque / NEFT /RTGS
Anirudh
(Expert) 17 October 2014
Revenue Stamp is necessary only where cash payment exceeding Rs. 5000/- is made. It is not applicable where the payment is made by any other mode like Cheque etc.
ajay sethi
(Expert) 17 October 2014
agree with Mr anirudh
YASHPAL RAWAT
(Querist) 18 October 2014
Why MCD/NDMC/LIC/BSES affix revenue stamp on the payment of morve than Rs 5000/- by cheque/Pay order
Anirudh
(Expert) 18 October 2014
You ask me whether one can drive through when there is 'RED' signal.
I say no, only when 'GREEN' signal is there one can drive through.
Now, you ask why in many places people drive through when the signal is 'RED'? The obvious answer is, they are violating the law/rule.
In the case of MCD/NDMC/BSES at best they could be ignorant of the relevant provisions of law.
YASHPAL RAWAT
(Querist) 18 October 2014
Thanks for reply Anirudh Ji
Advocate. Arunagiri
(Expert) 18 October 2014
LIC will not issue stamped receipt for cheque payment. LIC is stamping the document for issuing the policy.
T. Kalaiselvan, Advocate
(Expert) 19 October 2014
Hope your query is solved, please make sure you come out with some good legal queries in future.
YASHPAL RAWAT
(Querist) 24 October 2014
Please send me hard copy which is clearing confirming the same for guiding to my seniors and friends.
Guest
(Expert) 24 October 2014
Mr. Yashpal Rawat,
You could better have come forward with the real problem, if any you or your subordinates feel in cheque / NEFT /RTGS
payment cases. However, as a Manager (Finance & Accounts) you were supposed to know this basic information that Revenue stamp is affixed only on cash payments.
Mr. Anirudh has rightly advised you. Your subsequent question was irrelevant. You should know that payments through cheque / NEFT /RTGS have definite proof of payment having been made by someone and and receipted by the concerned organisation, but possibility of frauds or drainage of revenue of Government cannot be overruled in cash receipts, which can be out of unearned income. That is why as a viable legal proof of money having been exchanged hands and revenue of the Government is assured, issue of receipt on revenue stamp is a must, if exceeds Rs.5,000.
Further, you should be concerned with your own organisation, not the MCD/NDMC/LIC/BSES or others. But, still, if you want to know about those organisations, this is not the right forum to ask, as the experts do not have any authority to speak on their behalf. So, only the authorised representatives of the concerned organisations can explain why they are affixing revenue stamp, if they do so on cheque / NEFT /RTGS payments also.
In this respect, I would like to ask you a very simple question, when you make online payment through credit or debit card, do you get any receipt on revenue stamp?
J K Agrawal
(Expert) 06 March 2016
Receipt is defined in section 2 (23) of the Indian Stamp Act
(23) "Receipt". - "receipt" includes any note, memorandum or writing-
(a) whereby any money, or any bill of exchange, cheque or promissory note is acknowledged to have been received; or
(b) whereby any other movable property is acknowledged to have been received in satisfaction of a debt, or
(c) whereby any debt or demand, or any part of a debt or demand, is acknowledged to have been satisfied or discharged, or
(d) which signifies or imports any such acknowledgement, and whether the same is or is not signed with the name of any person;
Item no 53 of Schedule 1 of the Stamp Act says the stamp duty on receipt
53. Receipt as defined by section 2(23) for any money or other property the amount or value of which exceeds....
There are some exceptions also of Item 53 but I find no such exception as stated by Mr Anirudh and as supported by my other learned friends.
It simply means that it requires stamp duty even though it is payment by cheque or bank draft or any other instrument.
No doubt there are some exceptions but these are not certainly as stated above. the main exception is payment to government. other Exceptions are related to revenue land premium and agriculture etc.
