stamp paper
adil
(Querist) 15 November 2009
This query is : Resolved
Q1. What is the validity of stamp paper?
Q2. If I buy 1 lac stamp paper in the name of person xyz can I use the same stamp paper for another person? If no where do I refund them and how much money will be refunded. Are there any charges that I have to pay for refund of stamp paper in Treasury?
Q3. If I bye stamp paper for person xyz and by mistake I used these stamp paper for another person will the instrument in which these stamp are used be invalid or what are the consequences?
Q4. How much extra money will I have to pay in the treasury for buying 1 lac stamp paper?
Q5. Can anyone buy stamp paper from treasury or only authorized stamp dealers are allowed?
Q6. If someone has to pay vary big amount of stamp duty lets say 500 lac do I need to use a bundle of stamp paper or there is another way of paying stamp duty.
Q7. If someone buy 1 lac stamp paper to resister agreement to sale and he /she printed the content of agreement to sale on stamp paper and now he dose not want to register the agreement. Is there any way to refund these printed stamp paper not being used?
G V S Jagannadha Rao
(Expert) 15 November 2009
In the first instance, after the telgi scam many states have dispensed with high denomination stamp papers. A document can now be executed even on a white paper and stamp duty is deposited by challan in bank.
If a stamp paper is soiled or misused, an application for refund can be filed int he office of the Registrar of Assurances. Normally about 3 months time is granted from the date of execution of the stamp for refund. A part of the amount of stamp duty is deducted towards expenses.
Since rates of Stamp Duty in respect of documents other than (item 91) of list I are in (item 63) of List II, each State will have their own rates. Rules of refund and period for claiming refund, percentage of deduction may also vary from state to state. You may therefore refer the rates/periods/deductions applicable to your state.
I hope most of your queries are answered.
AEJAZ AHMED
(Expert) 15 November 2009
In addition to Mr. Jagannadha Rao,
Go through the attached document;
SC Judgment in Thiruvengada Pillai vs Navaneethammal & Anr on 19 February, 2008
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Observation about validity:
" The Indian Stamp Act, 1899 nowhere prescribes any expiry date for use of a stamp paper. Section 54 merely provides that a person possessing a stamp paper for which he has no immediate use (which is not spoiled or rendered unfit or useless), can seek refund of the value thereof by surrendering such stamp paper to the Collector provided it was purchased within the period of six months next preceding the date on which it was so surrendered. The stipulation of the period of six months prescribed in Section 54 is only for the purpose of seeking refund of the value of the unused stamp paper, and not for use of the stamp paper. Section 54 does not require the person who has purchased a stamp paper, to use it within six months. Therefore, there is no impediment for a stamp paper purchased more than six months prior to the proposed date of execution, being used for a document. "
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Raj Kumar Makkad
(Expert) 15 November 2009
1. 6 months.
2. No. The stamp paers issued in the name of some other person cannot be used. The stamp paers can be refunded in the same treasury from where those were purchased. 10% amount of the stamp paers shall legally be deducted.
3. Absolutely invalid.
4. As replied in para no. 2, you shall have to refund already purchased stamp papars and will have to purchase afresh.
5.In some states like Haryana the stamp papers below the amount of Rs. 10,000/- can be purchased from authorised stamp vendor and stamps of more value than rs. 10,000/- can only be purchased through treasury.
6. In such cases, the treasury issues the certificate of deposit of amount and no specific stamp paper is required to be affixed.
7. Yes. Printing stamp paer, if not used can also be refunded.
