Basic concept of stamp duty
Q. Can stamp duty be paid in India, for documents executed outside India?
Ans. As per section 18 of the Indian Stamp Act, 1899, any instrument executed out of India can be stamped in India, provided it is stamped within 3 months from the date it has been first received in India.
Q. Stamp Duty is paid on ad valorem basis. What does this implies?
Ans. It means that — Stamp Duty is paid on basis of value of property.
Q. How stamp duty payable can be determined?
Ans. Usually, the executor himself can calculate the stamp duty payable on document as per the rates provided in the Indian Stamp Act, 1899 or the State Stamp Act, as the case may be. Under section 31 of the Indian Stamp Act, 1899, the executor can also apply to the Collector of Stamps after payment of the requisite fee, for the purpose of obtaining the opinion of the Collector of Stamps as to the amount of stamp duty chargeable on the instrument.
Q. How stamp duty on transfer of shares of a company is computed?
Ans. Stamp duty is payable under the Indian Stamp Act, 1899 on transfer of shares of an Indian company. If the shares are transferred under the depository mechanism, no stamp duty is payable on such transfer of shares. The stamp duty on transfer of shares as per Article 62 of the Indian Stamp Act, 1899 is 0.2 5% of the value of the transfer.
