Stamp Paper Act,1899
Kunwar Mohd Asad
(Querist) 21 July 2011
This query is : Resolved
If any instrument/agreement is executed by one party in other state and stamp duty as per that State Act is already affixed, is it necessary to affix additional stamp duty of another state where the second party is executing instrument/document?
M.Sheik Mohammed Ali
(Expert) 21 July 2011
yes, if various amount is deferred then you may pay the stamp duty
Sajeev Menon
(Expert) 21 July 2011
Hi,
The place of execution is irrelevent but where the registration or where the subject matter lays is taken to be considered. Stamp duty is calculated based on the subject matter not with the place of execution.
Amit Soni
(Expert) 22 July 2011
It is advisable to pay the duty in state where it is lower and than pay the difference amount in the state where it is higher so you can get the benefit of duty earlier paid in other state.
RAJU O.F.,
(Expert) 22 July 2011
Stamp duty paid as per the state rules of the place of execution of the agreement/ instrument, having cause of action, would be valid.
Kunwar Mohd Asad
(Querist) 23 July 2011
I am not getting the point,
Refer my query topmost mentioned and the advise given by Mr. Amit Soni (Second last expert), if it is not necessary to affix additional stamp duty of another state, do we require to affix stamp duty of the higher denomination of either of 2 states where the instrument is executed?
Thanks in advance.
anil kumar
(Expert) 23 July 2011
Hi Kunwar,
If the instrument chargeable with duty as per Schedule 1A of the Indian Stamp Act and has been first executed in State 'A' and thereafter in State 'B' then the following situations may emerge-
(i) Duty in State A > State B
(ii)Duty in State A < State B
(iii)Duty in State A = State B
In the above example, in situation (i) there is no need to worry and no addl. duty is chargeable on the instrument in State B.
In situation (ii), the difference of duty is payable in State 'B' (Duty paid in State A and that payable in State 'B') by producing it before the stamp authority who shall collect and make an endorsement of having collected the same, and not by self-affixing.
In situation (iii), no duty is payable in State 'B'.
Hope this would clarify the position.
Kunwar Mohd Asad
(Querist) 23 July 2011
Thanks Mr. Anil Kumar. It works now....
Example appreciated.
M V Gupta
(Expert) 23 July 2011
The position stated by Mr. Anil kumar is correct.
