INDIAN STAMP ACT, 1899 (PONDICHERRY AMENDMENT

Section 24 - How transfer in consideration of debt, or subject to future payment, etc. to be charged

Where any property is transferred to any person in consideration, wholly or in part, of any debt due to him, or subject either certainly or contingently to the payment or transfer of any money or stock, whether being or constituting a charge or incumbrance upon the property or not, such debt, money or stock is to be deemed the whole or part, as the case may be, of the consideration in respect whereof the transfer is chargeable with ad valorem duty:

Provided that nothing in this section shall apply to any such certificate of sale as is mentioned in Article No. 18 of Schedule I.

Explanation. ? In the case of a sale of property subject to a mortgage or other incumbrance, any unpaid mortgage money or money charged, together with the interest (if any) due on the same, shall be deemed to be part of the consideration for the sale:

Provided that where property subject to a mortgage is transferred to the mortgage, he shall be entitled to deduct from the duty payable on the transfer the amount of any duty already paid in respect of the mortgage.

[STATE AMENDMENTS

PONDICHERRY

[1][In Section 24 The following section shall be substituted, namely:--

"24. How transfer of property subject to mortgage to be charged Where property subject to a mortgage is transferred to the mortgagee, he shall be entitled to deduct from the duty payable on the transfer the amount of any duty already paid in respect of the mortgage.]

Section 25 - Valuation in case of annuity, etc.

Where an instrument is executed to secure the payment of an annuity or other sum payable periodically, or where the consideration for a conveyance is an annuity or other sum payable periodically, the amount secured by such instrument or the consideration for such conveyance, as the case may be, shall, for the purposes of this Act, be deemed to be?

(a)      where the sum is payable for a definite period so that the total amount to be paid can be previously ascertained?such total amount;

(b)      where the sum is payable in perpetuity or for an indefinite time not terminable with any life in being at the date of such instrument or conveyance?the total amount which, according to the terms of such instrument or conveyance, will or may be payable during the period of twenty years calculated from the date on which the first payment becomes due; and

(c)      where the sum is payable for an indefinite time terminable with any life in being at the date of such instrument or conveyance ? the maximum amount which will or may be payable as aforesaid during the period of twelve years calculated from the date on which the first payment becomes due.

[STATE AMENDMENTS

PONDICHERRY-

In Section 25

(a)      [2][in the opening paragraph, for the words "or where the consideration for a conveyance is an annuity or other sum payable periodically the amount secured by such instrument or the consideration for such conveyance, as the case may be" the words "the amount secured by such instrument" shall be substituted;]

(b)      [3][in clause (b), the words "or conveyance" in the two places where they occur shall be omitted;

(c)      in clause (c), the words "or conveyance" shall be omitted.]

Section 27 - Facts affecting duty to be set forth in instrument

The consideration (if any) and all other facts and circumstances affecting the chargeability of any instrument with duty, or the amount of the duty with which it its chargeable, shall be fully and truly set forth therein.

[STATE AMENDMENTS

PONDICHERRY

[4][In Section 27 The words and brackets "The consideration (if any) "the words" and the market value" shall be inserted.]

Section 28 - Direction as to duty in case of certain conveyances

(1)     Where any property has been contracted to be sold for one consideration for the whole, and is conveyed to the purchaser in separate parts by different instruments, the consideration shall be apportioned in such manner as the parties think fit, provided that a distinct consideration for each separate part is set forth in the conveyance relating thereto, and such conveyance shall be chargeable with ad valorem duty in respect of such distinct consideration.

(2)     Where property contracted to be purchased for one consideration for the whole, by two or more person jointly, or by any person for himself and others, or wholly for others, is conveyed in parts by separate instruments to the persons by or for whom the same was purchased, for distinct parts of the consideration, the conveyance of each separate part shall be chargeable with ad valorem duty in respect of the distinct part of the consideration therein specified.

(3)     Where a person, having contracted for the purchase of an property but not having obtained a conveyance thereof, contracts to sell the same to any other person and the property is in consequence conveyed immediately to the sub-purchaser the conveyance shall be chargeable with ad valorem duty in respect of the consideration for the sale by the original purchaser to the sub-purchaser.

(4)     Where a person, having contracted for the purchase of an property but not having obtained a conveyance thereof, contracts to sell the whole, or any part thereof, to any other person or persons and the property is in consequence conveyed by the original seller to different persons in parts, the conveyance of each part sold to a sub-purchaser shall be chargeable with ad valorem duty in respect only of the consideration paid by such sub-purchaser, without regard to the amount or value of the original consideration; and the conveyance of the residue (if any) of such property to the original purchaser shall be chargeable with ad valorem duty in respect only of the excess of the original consideration over the aggregate of the considerations paid by the sub-purchaser:

Provided that the duty on such last-mentioned conveyance shall in no case be less than one rupee.

(5)     Where a sub-purchaser takes an actual conveyance of the interest of the person immediately selling to him, which is chargeable with ad valorem duty in respect of the consideration paid by him and is duly stamped accordingly, any conveyance to be afterwards made to him of the same property by the original seller shall be chargeable with a duty equal to that which would be chargeable on a conveyance for the consideration obtained by such original seller, or, where such duty would exceed five rupees, with a duty of five rupees.

[STATE AMENDMENTS

PONDICHERRY

[5][In Section 28 The following section shall be substituted, namely:-

"28. Direction as to duty in case of certain conveyances

Where a sub-purchaser takes an actual conveyance of the interest of the person immediately selling to him, which is chargeable with ad valorem duty in respect of the market value of the property which is the subject matter of conveyance and is duly stamped accordingly, any conveyance to be afterwards made to him of the same property by the original seller shall be chargeable with a duty equal to that which would be chargeable on a conveyance for the market value of the property which is the subject matter of conveyance, or, where such duty would exceed five rupees, with a duty of five rupees.".]

Section 33 - Examination and impounding of instruments

(1)     Every person having by law or consent of parties authority to receive evidence, and every person in charge of a pubic office, except an officer of police, before whom any instrument, chargeable, in his opinion, with duty, is produced or comes in the performance of his functions, shall, if it appears to him that such instrument is not dull stamped, impound the same.

(2)     For that purpose every such person shall examine every instrument so chargeable and so produced or coming before him in order to ascertain whether it is stamped with a stamp of the value and description required by the law in force in [6][India] when such instrument was executed or first executed :

Provided that--

(a)      nothing herein contained shall be deemed to require any Magistrate of Judge of a criminal Court to examine or impound, if he does not think fit so to do, any instrument coming before him in the course of any proceeding other than a proceeding under Chapter XII or Chapter XXXVI of the Code of Criminal Procedure, 1898 (5 of 1898)[7];

(b)      in the case of a Judge of a High Court, the duty of examining and impounding any instrument under this section may be delegated to such officer as the Court appoints in this behalf.

(3)     For the purposes of this section, in cases of doubt,--

(a)      [8][the [9][State Government]] may determine what offices shall be deemed to be public offices; and

(b)      [10][the [11][State Government]] may determine who shall be deemed to be persons in charge of public offices.

[STATE AMENDMENTS

[PONDICHERRY

[12][In Section 33-

(i)       sub-section (1) shall be lettered as clause (a) of that sub-section and after clause (a) as so lettered, the following clause shall be inserted, namely:-

"(b)? Notwithstanding anything contained in section 31, but without prejudice to the provisions of clause (a), the Collector before whom any instrument is brought under section 31 for determining the duty with which the instrument is chargeable, shall, if it appears to him that such instrument is not duly stamped, impound the same:

Provided that nothing contained in this clause shall be deemed to authorise the Collector to impound any instrument which has not been executed but is brought to him under section 31 for determining the duty with which the instrument is chargeable or any instrument which he is authorised to endorse under section 32";

(ii)      in sub-section (2)---

(a)      for the words "every such person", the words, "every such person and the Collector" shall be substituted;

(b)      for the words "coming before him", the words, "coming or brought before him" shall be substituted.]

Section 45 - Power to revenue-authority to refund penalty or excess duty in certain cases

(1)     Where any penalty is paid under section 35 or section 40, the Chief Controlling Revenue-authority may, upon application in writing made within one year from the date of the payment, refund such penalty wholly or in part.

(2)     Where, in the opinion of the Chief Controlling Revenue-authority, stamp-duty in excess of that which is legally chargeable has been charged and paid under section 35 or section 40, such authority may, upon application in writing made within three months of the order charging the same, refund the excess.

[STATE AMENDMENTS

[PONDICHERRY

[13][In Section 45

The words "within three months of the order charging the same", the words "within six months from the date of payment" shall be substituted.]

Section 47 - Power of payer to stamp bills and promissory notes received by him unstamped

When any bill of exchange [14][or promissory note] chargeable [15][with a duty not exceeding ten naye paise] is presented for payment unstamped, the person to whom it is so presented may affix thereto the necessary adhesive stamp, and, upon cancelling the same in manner hereinbefore provided, may pay the sum payable upon such bill [16][or note], and may charge the duty against the person who ought to have paid the same, or deduct it from the sum payable as aforesaid, and such bill [17][or note], shall, so far as respects the duty, be deemed good and valid :

Provided that nothing herein contained shall relieve any person from any penalty or proceeding to which he may be liable in relation to such bill [18][or note].

[STATE AMENDMENTS

[PONDICHERRY

[19][After Section 47 The following section shall be inserted, namely:-

"47-A. Instruments of conveyance, etc., under-valued how to be dealt with

(1)     If the registering officer appointed under the Indian Registration Act, 1908 (Central Act 16 of 1908), while registering any instrument of conveyance, exchange or gift has reason to believe that the market value of the property which is the subject matter of conveyance, exchange or gift has not been truly set forth in the instrument, he may, after registering such instrument refer the same to the Collector for determination of the market value of such property and the proper duty payable thereon.

(2)     On receipt of a reference under sub-section (1), the Collector shall, after giving the parties a reasonable opportunity of being heard and after holding an enquiry in such manner as may be prescribed by rules made under this Act, determine the market value of the property which is the subject matter of conveyance, exchange or gift and the duty as aforesaid. The difference, if any, in the amount of duty, shall be payable by the person liable to pay the duty.

(3)     The Collector may, suo motu, within two years from the date of registration of any instrument of conveyance, exchange or gift not already referred to him under sub-section (1), call for and examine the instrument for the purpose of satisfying himself as to the correctness of the market value of the property which is the subject-matter of conveyance, exchange or gift and the duty payable thereon and if, after such examination, he has reason to believe that the market value of such property has not been truly set forth in the instrument he may determine the market value of such property and the duty as aforesaid in accordance with the procedure provided for in sub-section (2). The difference, if any, in the amount of duty, shall be payable by the person liable to pay the duty:

Provided that nothing in this sub-section shall apply to any instrument registered before the date of the commencement of the Indian Stamp (PONDICHERRY Amendment) Act, 1970.

(4)     (a) Any person aggrieved by an order of the Collector under subsection (2) or sub-section (3) may appeal to the appellate authority specified in sub-section (5).

(b) All such appeals shall be preferred within such time, and shall be heard and disposed of in such manner, as may be prescribed by rules made under this Act.

(5)     The appellate authority shall be the Subordinate Judge, or if there are more than one Subordinate Judge, the Principal Subordinate Judge having jurisdiction over the area in which the property concerned is situated.

Explanation: For the purposes of this Act, market value of any property shall be estimated to be the price which in the opinion of the Collector or the appellate authority, as the case may be, such property would have fetched or fetch, if sold in the open market on the date of execution of instrument of conveyance, exchange or gift".]

Section 78 - Act to be translated and sold cheaply

Every State Government shall make provision for the sale of translations of this Act in the principal vernacular languages of the territories administered by it at a price not exceeding [20][twenty-five naye paise] per copy.

[STATE AMENDMENTS

[PONDICHERRY

[21][In Section 78

The following section shall be substituted, namely:-

"78. Duty or allowance to be rounded off to the next higher multiple of five paise.

If the total amount of duty payable, or of allowance to be made, under this Act is not a multiple of five paise, the total amount shall be rounded off to the next higher multiple of five paise,".]