Difference Between Pasting a revenue stamp & stamp paper?

REVENUE STAMP WILL BE AFFIXED ON THE RECIEPS OR ANY OTHER DOCUMENTS WHICH SHOWS THAT SOME AMOUNT WAS RECIEVED UNDER THE COVER OF THAT DOCUMENT .WHERE AS STAMP PAPER IS MEANT FOR THE AGREEMENTS OR CONTRACTS IN RESPECT OF ANY MOVEABLE OR IMMOVABLE PROPERTY OR ANY AGREEMENT FOR PERFORMANCE OF SERVICES .

Thank you Rajesh G for simple & Clear answer. Though i would be glad if anyone adds something more to this knowledge base.

Revenue stamps are stamps used to collect taxes and fees. They are issued by Governments, national and local, and by official bodies of various kinds. They take many forms and may be gummed and ungummed, peforated or imperforate, printed or embossed, and of any size. In many countries, they are as detailed in their design as banknotes and they are often made from the same type of paper.

Some types of revenue stamps

Court fees

One of the earliest uses of revenue stamps was to pay Court Fees. Stamps were used in the Indian feudal states as early as 1797, almost 50 years before the first postal stamps.

Although India is only one of several countries that have used tax stamps on legal documents, it was one of the most prolific users. The practice is almost entirely stopped now, partly due to the prevalence of forgeries which cost the issuing government revenue.

Documents

The tax on documents, also commonly known as stamp duty, is one of the oldest uses of revenue stamps. Governments would enforce the payment of the tax by making unstamped documents unenforcable in court. The tax would apply to contracts, tenancy agreements, wills etc.

Tobacco and alcohol

In many countries, tobacco and alcohol are taxed by the use of excise stamps. For instance, the producer may buy stamps from the government which are then affixed to each bottle of alcohol or packet of cigarettes to show that tax has been paid. Often the stamp will be fixed across a seal so that on opening the pack or bottle the stamp is destroyed.

Judicial and non-judicial stamp papers both are issued by court with a certain validity period & purpose mentioned at the back of stamp paper.
If a person or a community gives a guarantee, say for a certain performance of work on judicial stamp to the 2nd party and if he didn't perform that work. Then to forfeit the guarantee amount given by 1st party, the 2nd party has to request to Court and the court will actually forfeit the amount and provide it to the 2nd party. It will not be the case if the guarantee will be on non-judicial stamp paper. In the second case the sufferer (2nd party) simply forfeits the guarantee amount from the 1st party's bank without concerning court or even 1st party itself and it will be a legal action.

According to a recent Supreme Court Judgement dated 19-02-2008 in the case of Thiruvengada Pillai vs. Navaneethammal and Anr., the stamp papers do not have any expiry period. Relevant extract from SC judgement is reproduced herein below:

“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.-Citation : Thiruvengada Pillai Vs. Navaneethammal and Anr.

More information Go to https://www.ksphc.org/stampit.info/Stamp%20and%20Types.htm

The Supreme Court's judgement on the expiry of stamp paper is based on Section 54 of the Indian Stamp Act. However, in Maharasthra, the validity of the stamp paper is yet restricted to 6 months from the date of purchase, under Section 52-B:Q. 15. What is the validity of Stamps ?

As per the provisions of Section 52-B, the stamps which are purchased and not used within six months shall be rendered invalid thereafter. The stamps purchased and not used for intended purpose are entitled for refund after deduction of certain charges, if lodged for refund within six months from the date of purchase and on fulfilling the conditions stipulated in Chapter V of the Bombay Stamp Act, 1958.

That no where relates to topic/ question asked.

Thanks Kushan Vyas for enlightening us with such informative thread.

Best Regards

Daksh

Sir

I am a goverment servent and receiving the salary through bank where the Office deposits the payment. However, while issuing the salary slip, office asks to affix 1 Rs. revenue stamp. I feel this is not required. I am fighting with the office on this issue. Kindly guide me and provide the relevant documents, if any.

D.M.Kolte

dmkolte@rediffmail.com