RAJASTHAN STAMP ACT, 1998
(1) This Act may be called the Rajasthan Stamp Act, 1998.
(2) It extends to whole of the State of Rajasthan.
(3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.
Section 1 of the Rajasthan Stamp Act, 1998, establishes the short title, extent, and commencement of the Act, providing the foundational scope and applicability of the law relating to stamp duties within Rajasthan. It signifies the legislative intent to consolidate and amend the law governing stamp duties in the state.
Section 1 states that the Act may be called the "Rajasthan Stamp Act, 1998," extends to the entire state of Rajasthan, and shall come into force on a date appointed by the state government. It also clarifies that the Act is an adaptation of the Indian Stamp Act, 1899, as applicable to Rajasthan.
Section 1 itself does not prescribe any punishment. However, violations related to stamp duty, such as undervaluation or non-payment, are punishable under other provisions of the Rajasthan Stamp Act, including penalties, fines, or prosecution for evasion.
In summary, Section 1 of the Rajasthan Stamp Act, 1998, lays the essential groundwork for the entire legislative framework governing stamp duties in Rajasthan, defining its scope, applicability, and commencement, while ensuring legal continuity and revenue enforcement within the state.
In this Act, unless there is something repugnant in the subject or context,
(i) "air rights" shall mean rights to construct upper floors for sale and use, independent of the existing building;
1"(ia) 'association' means any association of person, exchange broker, or any other organisation or body of persons, whether incorporated or not, and regulating or controlling or conducting business of the sale or purchase of, or other transaction relating to, any goods or marketable securities".
[10[(ii) "Ban ker" means an association a company or a person who accepts for the purpose of lending or investment, deposits of money from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, order, or otherwise within the territories of India and includes-
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Section 2 of the Rajasthan Stamp Act, 1998, provides the definitions crucial for interpreting various terms used throughout the Act. It lays the foundation for understanding what constitutes an instrument, conveyance, and other key legal concepts relevant to stamp duty and related procedures. This section ensures clarity and uniformity in the application of the law, which is essential for legal certainty and effective enforcement.
Section 2 of the Rajasthan Stamp Act, 1998, contains detailed definitions of terms such as:- "Instrument" (Section 2(14))- "Conveyance" (Section 2(xi))- "Instrument of partition" (Section 2(xx))- "Market value" (Section 2(XXIII))- "Surcharge" (various provisions)- "Collector" (various provisions)- Other terms relevant to stamp duty, registration, and valuation
These definitions clarify the scope of the Act and specify which documents and transactions are subject to stamp duty, how they are to be valued, and the procedures for assessment and enforcement.
The essential ingredients of Section 2 include:- Clear demarcation of terms to avoid ambiguity- Inclusion of various types of documents and instruments relevant to property transfer, partition, and other transactions- Specification of the scope of "instrument" to include documents creating, transferring, or recording rights or liabilities- Definition of "conveyance" as including sale, mortgage, and other transfer instruments- Clarification regarding the scope of "instrument of partition" and "market value"- Provision for the applicability of the Act to instruments executed within or outside the State, and those received in the State
The scope of Section 2 is broad and comprehensive:- It applies to all instruments related to immovable and movable property, including documents of sale, mortgage, lease, partition, and agreements- It encompasses instruments executed both within and outside Rajasthan but relating to property or transactions in Rajasthan- It provides the basis for determining the liability for stamp duty and the valuation of instruments- It extends to documents executed out of the State but relating to property or matters within Rajasthan- It influences the procedures for registration, assessment, and enforcement of stamp duty
While Section 2 itself primarily deals with definitions, the broader Rajasthan Stamp Act, 1998, prescribes penalties for violations such as:- Non-stamping or insufficient stamping of instruments (Section 65)- Evasion of stamp duty (Section 72)- Penalties for offences under the Act, including fines which may extend up to Rs. 1,000 or more depending on the nature of violation [Section 72(2)]
Failure to comply with provisions related to proper stamping can lead to penalties, confiscation of documents, and prosecution.
In conclusion, Section 2 of the Rajasthan Stamp Act, 1998, is pivotal in defining the scope, applicability, and interpretation of key terms that underpin the entire legal regime of stamp duty in Rajasthan. Its comprehensive definitions facilitate uniform enforcement, reduce ambiguities, and uphold the integrity of the revenue collection process. Violations of the provisions, especially related to proper stamping and registration, attract penalties and legal sanctions, reinforcing the importance of compliance for legal validity and evidentiary admissibility.
Subject to the provisions of this Act and the exemptions contained in the Schedule, the following instruments shall be chargeable with duty of the amount indicated in the Schedule as the proper duty therefor respectively, that is to say,--
(a) every instrument mentioned in that Schedule, which, not having been previously executed by any person, is executed in the State on or after the date of commencement of this Act;
(b) every instrument mentioned in that Schedule, which, not having been previously executed by any person, is executed out of the State on or after the said date, relates to any property situate, or to any matter or thing done or to be done in the State and is received in the State :
Provided that no duty shall be chargeable in respect of,--
1[3A. Certain instruments chargeable with surcharge.--
(1) All instruments of conveyance, exchange, gift, settlement, partition, agreement to sale, composition, mortgage, release, power of attorney and lease of immovable property, and agreement or memorandum of an agreement relating to giving authority or power to a promoter or a developer, by whatever name called, for construction on, or development of, any immovable property, chargeable with duty under section 3 read with Schedule to the Act, shall be chargeable with surcharge at such rate not exceeding 10 percent of the duty chargeable on such instruments under Section 3 read with Schedule to the Act; as may be notified by the State Government, for the purpose of the development of basic infrastructure facilities such as rail or road transportation system, communication system, power distribution system, sewerage system, drainag
1[4. Payment of stamp duty in cash.--
(1) Notwithstanding anything contained in section 10,-
(i) any instrument chargeable with the stamp duty may be executed on an unstamped paper; and
(ii) the stamp duty chargeable on such instrument may be paid or collected in such manner as the State Government may prescribe by rules.
(2) The registering officer or any other officer authorized by the State Government shall, on production of such proof of payment of stamp duty under clause (ii) of sub-section (1) as the State Government may prescribe by rules, endorse on the instrument the amount of stamp duty so paid in such manner as the State Government may prescribe by rules.
(3) An instrument endorsed under sub-se
1[4A. Rounding off of fractions in duty, fee or surcharge payable or allowances to be made.--
In determining the amount of duty, surcharge or fee payable, or of the allowances to be made, under this Act, any fraction of 10 rupees, equal to or exceeding 50 paise shall be rounded off to next 10 rupees, and any fractions of less than 50 paise shall be disregarded.]
1. Inserted by the Rajasthan Finance Act, 2014.
(1) Where, in case of any of sale, mortgage or settlement, several instruments are employed for completing the transaction, only the principal instrument shall be chargeable with the duty prescribed for it in the Schedule and each of the other instruments shall be exempt from duty.
(2) The parties may determine for themselves which of the instruments so employed shall, for the purposes of sub-section (1), be deemed to be the principal instrument:
Provided that the duty chargeable on the instrument so determined shall be the highest duty which would be chargeable in respect any of the said instruments employed.
Any instrument comprising or relating to several distinct matters, shall be chargeable with the aggregate amount of the duties with which separate instruments, each comprising or relating to one of such matters would be chargeable under this Act.
Subject to the provisions of the last preceding section, an instrument so framed as to come within two or more of the descriptions in the Schedule, shall, where the duties chargeable thereunder are different, be chargeable only with the highest of such duties.
(1) Notwithstanding anything contained in section 5 or section 7 or in any other law for the time being in force, the duty chargeable on any of the several instruments employed for completing a transaction of sale, mortgage or settlement other than a principal instrument or on a counterpart, duplicate or copy of any instrument shall, if the principal or original instrument would, when received in the State of Rajasthan have been chargeable under this Act, with a higher rate of duty be the duty with which the principal or original instrument would have been chargeable under section 20 unless it is proved that the duty chargeable under this Act has been paid--
(a) on the principal or original instrument, as the case may be, or
(b) in accordance with the provisions of this section.
(2) Notwithsta
(1) The Government, if satisfied that it is necessary to do so in the public interest, may by rule or order published in Official Gazette, reduce or remit, whether prospectively or retrospectively, in the whole or any part of the territories under its administration, the duties with which any instruments or any particular class of instruments, or any of the instruments belonging to such class, or any instruments when executed by or in favour of any particular class of persons, or by or in favour of any member of such class are chargeable.
(2) The Inspector General of Stamps may by order provide for the composition or consolidation of duties in the case of receipt, policy of Insurance and issues by any incorporated company or other body corporate or of transfers where there is a single transferee, whether incorporate or not, of debentures, bonds or other marketable securities.
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(1) Except as otherwise expressly provided in this Act, all duties with which any instruments are chargeable shall be paid, and such payment shall be indicated on such instruments by means of stamps,--
(a) according to the provisions herein contained, or
(b) When no such provision is applicable thereto, as the State Government may, by rule, direct.
(2) The rules made under sub-section (1) may, among other matters, regulate,--
(a) in the case of each kind of instrument the description of stamps which may be used;
(b) in the case of instruments stamped with impressed stamps, the number of stamps which may be used; and
(c) in the case of bills of exchange or promi
The following instruments may be stamped with adhesive stamps, namely,--
(a) instruments chargeable with a duty not exceeding twenty paise except parts of bills of exchange payable otherwise than on demand and drawn in sets;
(b) bills of exchange drawn or made out of India and promissory notes so drawn or made;
(c) entry as an advocate on the roll of a High Court,
(d) notarial acts; and
(e) transfers by endorsement of shares in any incorporated company or other body corporate.
(1) (a) Whoever affixes any adhesive stamp to any instrument chargeable with duty which has been executed by any person shall, when affixing such stamp, cancel the same so that it cannot be used again;
(b) Whoever executes any instrument on any paper bearing an adhesive stamp shall, at the time of execution, unless such stamps have been already cancelled in the manner aforesaid, cancel the same so that it cannot be used again.
(2) Any instrument bearing an adhesive stamp which has not been cancelled so that it cannot be used again, shall, so far as such stamp is concerned, be deemed to be unstamped.
(3) The person required by sub-section (1) to cancel an adhesive stamp may cancel it by writing on or across the stamp his name or initials or the name or initials of his firm with the true date of
Every instrument written upon paper stamped with an impressed stamp shall be written in such manner that the stamp may appear on the face of the instrument and cannot be used for or applied to any other instrument.
Explanation 1--Where two or more sheets of paper stamped with impressed stamps are used to make up the amount of duty chargeable in respect of any instrument, either a portion of such instrument shall be written on each sheet so used, or the sheet on which no such portion is written shall be signed by the executant or one of the executants, with an endorsement indicating that the sheet is attached to another sheet on which the instrument is written.
Explanation 2--Where a single sheet of paper, not being paper bearing an impressed hundi-stamp, is insufficient to admit the entire instrument being written on the side of the pape
No second instrument chargeable with duty shall be written upon a piece of stamped paper upon which an instrument chargeable with duty has already been written:
Provided that nothing in this section shall prevent any endorsement which is duly stamped or is not chargeable with duty being made upon any instrument for the purpose of transferring any right created or evidenced thereby, or of acknowledging the receipt of any money or goods the payment or delivery of which is secured thereby.
Every instrument written in contravention of section 13 or section 14 shall be deemed to be not duly stamped.
Where duty with which an instrument is chargeable, or its exemption from duty, depends in any manner upon the duty actually paid in respect of another instrument, the payment of such last mentioned duty shall, if application is made in writing to the Collector for the purpose, and on production of both the instruments, be denoted upon such first mentioned instrument, by endorsement under the hand of the Collector or in such other manner, if any, as the State Government may by the rule prescribe.
All instruments chargeable with duty and executed by any person in the State shall be stamped before or at the time of execution or immediately thereafter on the next working day following the day of execution.
(1) Every instrument chargeable with duty executed out of the State and not being a bill of exchange, or promissory note, may be stamped within three months after it has been first received in the State.
(2) Where any such instrument cannot, with reference to the description of stamp prescribed therefor, be duly stamped by a private person, it may be taken within the said period of three months to the Collector, who shall stamp the same, in such manner as the State Government may by rule prescribe, with a stamp of such value as the person so taking such instrument may require and pay for.
The first holder in the State of any bill of exchange, payable otherwise than on demand or promissory note drawn or made out of India shall, before he presents the same for acceptance or payment, or endorses, transfers or otherwise negotiates the same in the State, affix thereto the proper stamp and cancel the same :
Provided that --
(a) if, at the time any such bill of exchange or note comes into the hands of any holder thereof in the State, the proper adhesive stamp is affixed thereto and cancelled in the manner prescribed under section 12 and such holder has no reasons to believe that such stamp was affixed or cancelled otherwise than by the person and at the time required by this Act, such stamp shall, so far as relates to such holder, be deemed to have been duly affixed and cancelled;
(b)
When any instrument has become chargeable in any part of India other than the State of Rajasthan with duty under the Indian Stamp Act, 1899 (Act No. 2 of 1899) or under any other law for the time being in force in such part and thereafter becomes chargeable with a higher rate of duty in the State of Rajasthan under this Act,-
(i) the amount of duty chargeable on such instrument shall be the amount chargeable on it under this Act less the amount of duty, if any, already paid on it in India; and
(ii) in addition to the stamps, if any, already affixed thereto, such instrument shall be stamped with the stamp necessary for the payment of the amount of duty chargeable on it under clause (i) in the same manner and at the same time and by the same person as though such instrument were an instrument received in this State for the first time, when
(1) Where any instrument is registered in any part of India other than the State of Rajasthan and such instrument relates, wholly or partly to any property situate in the State of Rajasthan, the copy of such instrument shall, when received in the State of Rajasthan under the Registration Act, 1908 (Act No. 16 of 1908), be liable to be charged with the difference of duty as on the original instrument.
(2) The difference of duty shall be calculated having regard to, the extent of property situated in the State of Rajas than and the proportionate consideration or market value of such extent of property.
(3) The party liable to pay duty on the original instrument shall upon receipt of notice from the registering officer, pay the difference of duty within the time allowed by such registering officer.
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(1) Where an instrument is chargeable with ad valorem duty in respect of any money expressed in any currency other than that of India, such duty shall be calculated on the value of such money in the currency of India according to the current rate of exchange on the day of the date of the instrument.
(2) The rate of exchange for conversion of British or any foreign currency into the currency of India, as may be prescribed by the Central Government, under sub-section (2) of section 20 of the Indian Stamp Act, 1899 (Act No. 2 of 1899), for the purposes of calculating stamp duty, shall be deemed to be the current rate of exchange for the purposes of sub-section (1).
Where an instrument is chargeable with ad valorem duty in respect of any stock or of any marketable or other security, such duty shall be calculated on the value of such stock or security according to the average price or the value thereof on the day of the date of the instrument.
Where an instrument contains a statement of current rate of e'xchange, or average price, as the case may require, and is stamped in accordance with such statement, it shall, so far as regards the subject matter of such statement, be presumed, until the contrary is proved, to be duly stamped.
Where interest is expressly made payable by the terms of an instrument, such instrument shall not be chargeable with duty higher than that with which it would have been chargeable had no mention of interest been made therein.
(1) Where an instrument (not being promissory note or bill of exchange),-
(a) is given upon the occasion of the deposit of any marketable security by way of security for money advanced or to be advanced by way of loan, or for an existing or future debt, or
(b) makes redeemable or qualifies a duly stamped transfer, intended as a security, of any marketable security, it shall be chargeable with duty as if it were an agreement or memorandum of an agreement chargeable with duty under Article 5 (c) of the Schedule.
(2) A release or discharge of any such instrument shall only be chargeable with the like duty.
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 encumbrance 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 where of 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 17 of the Schedule.
Explanation--In the case of a sale of property subject to a mortgage or other encumbrance, 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:
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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 the 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
Where the amount or value of the subject matter of any instrument chargeable with ad valorem duty, cannot be, or, in the case of an instrument executed before the commencement of this Act, could not have been, ascertained at the date of its execution or first execution, nothing shall be claimable under such instrument more than the highest amount or value for which, if stated in an instrument of the same description, the stamp actually used would, at the date of such execution, have been sufficient:
Provided that, in the case of the lease of a mine in which royalty or a share of the produce is received as the rent or part of the rent, it shall be sufficient to have estimated such royalty or the value of such share, for the purpose of stamp duty,-
(a) when the lease has been granted by or on behalf of the Government, at such amount or val
(1) 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 is chargeable, shall be fully and truly set forth therein.
(2) In the case of instruments relating to immovable property chargeable with an ad valorem duty on the market value of the property, the instrument shall fully and truly set forth the land revenue in the case of revenue paying land, the annual rental or gross assets, if any, in the case of other immovable property, the local rates, municipal or other taxes, if any, to which such property may be subject, and any other particulars which may be prescribed by rules made under this Act.
(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 persons 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 t
In the absence of an agreement to the contrary the expense of providing the proper stamp shall be borne,-
(a) in the case of any instrument described in any of the following Articles of the Schedule, namely :
No. 2 (Administration bond)
No. 6 (Agreement relating to deposit of title-deeds, pawn or pledge)
No. 14 (Bond),
No. 15 (Bottomry Bond),
No. 25 (Customs Bond),
No. 30 (Further charge-instrument of),
No. 32 (Indemnity Bond),
No. 37 (Mortgage deed),
No. 48 (Release),
Any person receiving any money exceeding ''five thousand rupees' in amount, or any bill of exchange, cheque or promissory note for an amount exceeding 1'five thousand rupees', or receiving in satisfaction or part satisfaction of a debt, any movable property exceeding1'five thousand rupees' in value, shall, on demand by the person paying or delivering such money, bill, cheque, note or property, give a duly stamped receipt for the same and any person receiving or taking credit for any premium or consideration for any renewal of any contract of fire-insurance, shall within one month after receiving or taking credit for such premium or consideration, give duly stamped receipt for the same.
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Inserted by the Raj Finance Act 2005 w.e.f. 24.3.2005 for five hundred
For the purposes of this Act, the person from whom duty on an instrument is due is -
(a) the person liable under an agreement or under section 19, 32 and 33 or
(b) where clause (a) doses not apply, the executant of the instrument
(1) When any instrument, whether executed or not and whether previously stamped or not, is brought to the Collector, and the person bringing it applies to have the opinion of that officer as to the duty, if any, with which it is chargeable, and pays a fee of such amount 1[not exceeding two hundred rupees and not less than fifty rupees] as the Collector may in each case direct, the Collector shall determine the duty, if any, with which in his judgment, the instrument is chargeable.
(2) For this purpose the Collector may require to be furnished with 2[a true copy or] an abstract of the instrument, and also with such affidavit or other evidence as he may deem necessary to prove that all the facts and circumstances affecting the chargeability of the instrument with duty, or the amount of the duty with which it is chargeable, are fully and truly set forth therein, and may refuse to proc
(1) When an instrument brought to the Collector under section 35 is, in his opinion, one of a description chargeable with duty, and
(a) the Collector determines that it is already fully stamped, or
(b) the duty determined by the Collector under section 35, or such a sum as, with the duty already paid in respect of the instrument, is equal to the duty so determined, has been paid, the Collector shall certify by endorsement on such instrument that the full duty (stating the amount) with which it is chargeable, has been paid.
(2) When such instrument is, in his opinion, not chargeable with duty, the Collector shall certify in the manner aforesaid that such instrument is not so chargeable.
1[(2A) When an executed instrument brought to the Collector unde
(1) Every person having by law or consent of parties authority to receive evidence, and every person incharge of a public office, except an officer of a 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 duly 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 the State when such instrument was executed or first executed :
Provided that,-
(a) nothing herein contained shall be deemed to require any Magistrate or Judge of a Criminal Court to examine
where any receipt chargeable with a duty not exceeding one rupee is tendered to or produced before any officer unstamped in the course of audit of any public account, such officer may in his discretion, instead of impounding the instrument, require a duly stamped receipt to be substituted therefore.
No instrument chargeable with duty under this Act shall be admitted in evidence for any purpose by any person having by law or consent of parties authority to receive evidence, or shall be acted upon, registered or authenticated by any such person or by any public officer, unless such instrument is duly stamped:
Provided that, -
(a) any such instrument shall, subject to all just exceptions, be admitted in evidence on payment of, -
(i) the duty with which the same is chargeable, or in the case of an instrument insufficiently stamped, of the amount required to make up such duty, and
1[(ii) a penalty at the rate of two percent of the amount of the deficient duty per month or part thereof for the period during which the instrument remained insufficientl
Section 39 of the Rajasthan Stamp Act, 1998, delineates the legal framework governing the admissibility of instruments that are not duly stamped in evidence. It emphasizes the mandatory requirement of proper stamp duty and the consequences of non-compliance, ensuring the integrity of evidence presented before courts and authorities.
Section 39 mandates that no instrument chargeable with duty under the Act shall be admitted in evidence for any purpose unless it is duly stamped. The section provides that such instruments, if insufficiently stamped, are inadmissible in evidence, unless specific exceptions or procedures outlined in the Act are followed, including the payment of deficient duty and penalties.
Section 39 of the Rajasthan Stamp Act, 1998, underscores the importance of duly stamping instruments to ensure their admissibility and authenticity in legal proceedings. It establishes clear procedures for impounding and rectification of deficiencies, balancing the need for legal rigor with equitable allowances for collateral purposes. Courts are mandated to enforce these provisions strictly, with penalties for violations, thereby maintaining the integrity of legal evidence and fiscal discipline.
Note: All references are based on the provided sources, primarily from the case law summaries and statutory interpretations.
Where an instrument has been admitted in evidence, such admission shall not, except as provided in section 71, be called in question at any stage of the same suit or proceeding on the ground that the instrument has not been duly stamped.
Section 40 of the Rajasthan Stamp Act, 1998, deals with the admissibility of instruments in evidence once they have been admitted in a court proceeding. It provides legal certainty and finality regarding the status of stamped documents during civil or criminal trials, ensuring that questions about stamp duty do not reopen once the instrument is accepted as evidence.
Section 40 states that:
"Where an instrument has been admitted in evidence, such admission shall not; except as provided in section 71, be called in question at any stage of the same suit or proceeding on the ground that the instrument has not been duly stamped."
This means that once a document is accepted into evidence, its admissibility cannot be challenged later on the ground of insufficient stamp duty, barring specific exceptions.
Section 40 itself does not prescribe any punishment. However, violations related to stamp duty, such as evasion or non-payment, are punishable under other sections like Section 44 (penalty for omission to pay stamp duty), which may entail fines or penalties.
In summary, Section 40 of the Rajasthan Stamp Act, 1998, provides that an instrument once admitted in evidence cannot be questioned later on the ground of insufficient stamp duty, reinforcing the finality of evidence and ensuring smooth judicial proceedings. However, this protection is subject to specific exceptions and is complemented by other provisions addressing stamp duty compliance and penalties.
The State Government may make rules providing that, where an instrument bears a stamp of sufficient amount but or improper description, it may on payment of the duty with which the same is chargeable, be certified to be duly stamped, and any instrument so certified shall then be deemed to have been duly stamped as from the date of its execution.
(1) When the person impounding an instrument under section 37 has by law or consent of parties authority to receive evidence and admits such instrument in evidence upon payment of a penalty as provided by section 39 or of duty as provided by section 41, he shall sent to the Collector an authenticated copy of such instrument, together with a certificate in writing, stating the amount of duty and penalty levied in respect thereof, and shall sent such amount to the Collector, or to such person as he may appoint in this behalf.
(2) In every other case, the person so impounding an instrument shall send it in original to the Collector :
Provided that where the person who produced the instrument, or any party interested, is prepared to pay the cost of preparing a copy of the instrument, then:-
(a) an
1[43. Collector's power to refund penalty under sub-section (1) of section 42.-
Where a copy of an instrument which has been impounded only because it has been written in contravention of section 13 or section 14 is sent to the Collector under sub-section (1) of section 42, he may refund whole penalty paid in respect of such instrument.]
1. Substituted by the Rajasthan Finance Act, 2014 for the following : -
"43. Collector's power to refund penalty paid under sub-section (1) of section 42.--
(1) When a copy of an instrument is sent to the Collector under sub-section (1) of section 42, he may, if he thinks fit, refund any portion of the penalty in excess of
(1) When the Collector,-
(a) impounds any instrument under section 37, or
(b) receives any instrument sent to him under sub-section (2) of section 42, and such instrument is chargeable with a duty under this Act, he shall adopt the following procedure,-
(i) if he is of opinion that such instrument is duly stamped or is not chargeable with duty, he shall certify by endorsement thereon that it is duly stamped, or that it is not so chargeable, as the case may be;
(ii) if he is of opinion that such instrument is chargeable with duty and is not duly stamped, he shall require the payment of proper duty or the amount required to make up the same, together with 1[a penalty at the rate of two percent of the amount of the deficient duty per month or part ther
If any instrument chargeable with duty and not duly stamped under this Act, is produced by any person of his own motion before the Collector within one year from the date of its execution or first execution, and such person brings to the notice of the Collector the amount of the proper duty, and offers to pay to the Collector the amount of the proper duty or the amount required to make up the same, and the Collector is satisfied that the omission to duly stamp such instrument has been occasioned by accident, mistake or urgent necessity he may, instead of proceeding under section 37 and 44 receive such amount and proceed further as hereinafter provided:
Provided that where any instrument executed or first executed is brought to the Collector after the expiration of one month from the date of its execution or first execution, such instrument shall be chargeable with duty as applicabl
(1) When the duty and penalty, if any, leviable in respect of any instrument have been paid under section 39, section 44 or section 45, the person admitting such instrument in evidence or the Collector, as the case may be, shall certify by endorsement thereon that the proper duty or, as the case may be, the proper duty and penalty (stating the amount of each) have been levied in respect thereof, and the name and residence of the person paying them.
(2) Every instrument so endorsed shall thereupon be admissible in evidence, and may be registered and acted upon and authenticated as if it has been duly stamped, and shall be delivered on his application in this behalf to the person from whose possession it came into the hands of the officer, impounding it, or to such a person for whom he may direct:
'Provided that, -
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The taking of proceedings or the payment of stamp duty, surcharge if any and penalty under this Chapter in respect of any instrument shall not bar the prosecution of any person who appears to have committed an offence against the stamp law in respect of such instrument:
Provided that no such prosecution shall be instituted in the case of any instrument in respect of which such a penalty has been paid, unless it appears to the Collector that the offence was committed with an intention of evading payment of the proper duty.
(1) When any duty or penalty has been paid under section 39, section 41, section 44 or section 45, by any person in respect of any instrument, and by agreement or under the provisions of section 32, or any other enactment in force at the time such instrument was executed, some other person was bound to bear the expense of providing the proper stamp for such instrument, the first mentioned person shall be entitled to recover from such other person the amount of the duty or penalty so paid.
(2) For the purpose of such recovery any certificate granted in respect of such instrument under this Act shall be conclusive evidence of the matters therein certified.
(3) Such amount may, if the Court thinks fit, be included in any order as to costs in any suit or proceeding to which such persons are parties and in which such instrument has been tende
(1) Where any penalty is paid under section 39 or section 44, 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 39 or section 44, such authority may upon application in writing made within three months of the order charging the same, refund the excess.
(1) If any instrument sent to the Collector under sub-section (2) of section 42 is lost, destroyed or damaged during transmission, the person sending the same shall not be liable for such loss, destruction or damage.
(2) When any instrument is about to be so sent, the person from whose possession it came into the hands of the person impounding the same, may require a copy thereof to be made at the expense of such first mentioned person and authenticated by the person impounding such instrument.
(1) Notwithstanding anything contained in the Registration Act, 1908 (Act No. 16 of 1908) and the rules made thereunder as inforce in Rajasthan where, in the case of any instrument relating to an immovable property chargeable with an ad valorem duty on the market value of the property as set forth in the instrument, the registering officer has, while registering the instrument, reasons to believe that the market value of the property has not been truly set forth in the instrument, he may either before or after registering the instrument, send it in original to the Collector for taking action under sub-section (3).
(2) When through mistake or otherwise any instrument which is undervalued and not duly stamped is registered under the Registration Act, 1908, the registering officer may call for the original instrument from the party and, after giving the party liable to pay stamp duty
With a view to rectifying any mistake apparent from the record, the Collector may amend any order made by him under this Act, within ninety days of the date of order either on his own motion or on the mistake being brought to his notice by person affected by the order:
Provided that if any such amendment is likely to affect any person prejudicially, it shall not be made without giving to such person reasonable opportunity of being heard.
1[52A. Reopening of ex parte orders.--
(1) Where an order has been passed by the Collector ex parte under this Act, the aggrieved person may apply to the Collector for reopening of such order within thirty days from the date of communication of such order to him on the grounds that he did not receive the notice or summons issued to him in the matter or that he was prevented by sufficient cause from complying with any notice or summons issued to him.
(2) If the Collector is satisfied with the ground specified in the application made under sub-section (1), he shall reopen the ex parte order and after hearing the aggrieved person may pass such order as he may think proper in the circumstances of the matter within three months from the date of receipt of the application under sub-section (1).]
(1) Notwithstanding anything contained in the Registration Act, 1908 (Act 16 of 1908) and the rules made thereunder as in force in Rajasthan, where the registering officer has, while registering a document or instrument, reasons to believe that the nature of the document or instrument has not been correctly mentioned, he may, either before or after registering such document or instrument, send it, in original, to the Collector for taking action under sub-section (3).
(2) When through mistake or otherwise any instrument which is misclassified and not duly stamped, is registered under the Registration Act, 1908 (Act No. 16 of 1908), the registering officer may call for the original instrument from the party and, after giving the party liable to stamp duty an opportunity of being heard and recording the reasons in writing and furnishing a copy thereof to the party, impound it and on f
(1) Notwithstanding anything herein before contained, the registering officer shall, before making reference to the Collector under this Act, intimate to the parties concerned about the reference proposed to be made by him.
(2) In case the person liable to pay the duty offers to pay the amount of duty chargeable on such instrument, the registering officer shall, on payment of such duty, certify it on the instrument by endorsement and shall not make the reference.
(1) If it appears to any registering officer or any other person that an instrument relating to a transaction compulsarily registerable under section 17 of the Registration Act, 19081 (Act No. 16 of 1908) has not been presented for registration with a view to avoiding payment of stamp duty or for any other reason, he shall immediately inform the Collector concerned for taking necessary action under the Stamp Law.
(2) On receipt of information under sub-section (1) or suo motu, the, Collector shall issue a notice to the party/parties referred to in the information received, with a view to ensuring that the instrument is presented alongwith full facts and circumstances as required under section 30 of the Act to determine the liability for payment of stamp duty.
(3) Upon service of notice where the instrument in question is presented before
1[56. Recovery of duties and penalties.--
(1) All duties, penalties and other sums required to be paid under this chapter or under chapter III may be recovered by the Collector by distress and sale of the movable or immovable property of the person from whom the same are due, or by any other process for the time being in force for the recovery of arrears of land revenue.]
1. Substituted by the Rajasthan Finance Act, 2013.
1[56A. Power of Inspector General of Stamps to reduce or waive interest and penalty.--
(1) Notwithstanding anything contained in this Act, Inspector General of Stamps may on an application made in this behalf by a defaulter, reduce or waive the amount of interest or penalty or both upto a maximum limit of rupees twenty five thousand if the defaulter agrees to deposit the remaining amount of duties, penalties, interest and any other sums required to be paid by him under this Act within thirty days from such order.
(2) If the defaulter fails to deposit the amount specified in sub-section (1) within the time specified in that sub-section, the order of reduction or waiver passed under sub-section (1) shall stand withdrawn on the expiry of aforesaid period of thirty days.]
&n
Notwithstanding anything contained in the Indian Stamp Act, 1899 (Act No. 2 of 1899), no certificate or endorsement thereunder in respect of an instrument chargeable in the State of Rajasthan with a higher rate of duty under this Act, shall be received in evidence, or be, in any way, valid, in respect of the payment of duty on such instrument unless the duty chargeable at the rates, provided in this Act has been paid, on such instrument.
Subject to such rules as may be made by the State Government as to the evidence to be required, or the inquiry to be made, the Collector may, on application made within the period prescribed in 1"section 59", and if he is satisfied as to the facts, make allowance for impressed stamps spoiled in the case hereinafter mentioned, namely:
(a) the stamp on any paper inadvertently and undesignedly spoiled, obliterated or by error in writing or any other means rendered unfit for the purpose intended before any instrument written thereon is executed by any person;
(b) the stamp on any document which is written out wholly or in part, but which is not signed or executed by any party thereto;
(c) in the case of bill of exchange payable otherwise than on demand or promissory notes,
&nb
The application for relief under section 58 shall be made within the following periods, that is to say, -
(i) in the case mentioned in clause (d) (vi), within two months of the date of the instrument;
(ii) in the case of a stamped paper on which no instrument has been executed by any of the parties thereto within six months after the stamp has been spoiled;
(iii) in the case of a stamped paper in which an instrument has been executed by any of the parties thereto, within six months after the date of the instrument, or, if it is not dated, within six months after the execution thereof by the person by whom it was first or alone executed:
Provided that, -
(a) when the spoiled instrument has been for suffici
The Chief Controlling Revenue Authority or the Collector if empowered by the Chief Controlling Revenue Authority in this behalf may, without limit of time, make allowance for stamped papers used for printed form of instruments by any banker or by any incorporated company or other body corporate, if for any sufficient reason such forms have ceased to be required by the said banker, company or body corporate:
Provided that such authority is satisfied that the duty in respect of such stamped papers has been duly paid.
(a) when any person has inadvertently used for an instrument chargeable with duty, a stamp of a description other than that prescribed for such instrument by the rules made under this Act, or a stamp of a greater value than was necessary, or has inadvertently used any stamp for an instrument not chargeable with any duty; or
(b) When any stamp used for an instrument has been inadvertently rendered useless under section 15, owing to such instrument having been written in contravention of the provisions of section 13. The Collector may, on application made within six months after the date of the instrument or, if it not dated, within six months after the execution thereof by the person by whom it was first or alone executed, and upon the instrument, if chargeable with duty, being re-stamped with the proper duty, cancel and allow as spoiled the stamp so misused or rendered useless.
In any case in which allowance is made for spoiled or misused stamps, the Collector may give in lieu thereof, -
(a) other stamps of the same description and value; or
(b) if required and he thinks fit, stamps of any other description to be of the same amount in value; or
(c) at his discretion, the same value in money deducting ten paise for each rupee or fraction of a rupee.
When any person is possessed of a stamp or stamps which have not been spoiled or rendered unfit or useless for purpose intended, but for which he has no immediate use, the Collector shall repay to such person the value of such stamp or stamps in money, deducting ten paise for each rupee or portion of a rupee, upon such person delivering up the same to be cancelled, and proving to the Collector's satisfaction,-
(a) that such stamp or stamps were purchased by such person with a bona fide intention to use them; and
(b) that he had paid the full price thereof; and
(c) that they were so purchased within the period of six months next preceding the date on which they were so delivered :
Provided that, where the person is a licensed vendor of stamps, the Co
1[63A. Invalidation of Stamps and saving.--
Notwithstanding anything contained in sections 58, 61, 62 and 63,-
(a) any stamp which has been purchased on or after the date of commencement of the Rajasthan Finance Act, 2013 (Act No......of 2013) (hereinafter referred to as "the said date") shall be used or presented for claiming allowance within a period of six months from the date of purchase. Any such stamp, which has not been used or no allowance has been claimed in respect thereof within the period of six months from the date of purchase, shall be rendered invalid;
(b) any stamp which has been purchased but has not been used or no allowance has been claimed in respect thereof before the said date, may be used or presented for claiming the allowance under the relevant provisions of the Act wi
When any duly stamped debenture is renewed by the issue of a new debenture in the same terms, the Collector shall upon application made within one month, repay to the person issuing such debenture, the value of the stamp on the original or on the new debenture, whichever shall be less:
Provided that the original debenture is produced before the Collector and cancelled by him in such manner as the State Government may direct.
Explanation--A debenture shall be deemed to be renewed in the same terms within the meaning of this section notwithstanding the following changes,-
(a) the issue of two or more debentures in place of one original debenture, the total amount secured being the same;
(b) the issue of one debenture in place of two or more original d
(1) Any person aggrieved by an order made by the Collector under Chapter IV and V and under clause (a) of the first proviso to section 29 and under section 35 of the Act., may within 90 days from the date of order, apply to the Chief Controlling Revenue Authority for revision of such order:
Provided that no revision application shall be entertained unless it is accompanied by a satisfactory proof of the payment of 1[Twenty five percent] of the recoverable amount.
(2) The Chief Controlling Revenue Authority may suo moto or on information received from the registering officer or otherwise call for and examine the record of any case decided in proceeding held by the Collector for the purpose of satisfying himself as to the legality or propriety of the order passed and as to the regularity of the proceedings and pass such order with respect
(1) Subject to the provisions of this Act, the power to have general superintendence and control over Collectors shall vest in the Inspector General of Stamps.
(2) The Inspector General of Stamps shall specify the territorial jurisdiction of a Collector for the purpose of this Act, where there are more than one officer functioning as Collector.
67. Statement of case by the Chief Controlling Revenue Authority to 1"High Court"--
The Chief Controlling Revenue Authority may state any Case referred to it under section 65, or otherwise coming to its notice and refer such case, with its own opinion thereon, to the 1"High Court":
Provided that no reference shall be made under this section unless it is accompanied by a satisfactory proof of the payment of 2[Twenty five percent] of the recoverable amount.
____________________________
1. Sub. by the Raj. Ordinance No. 5 of 2004 w.e.f. 27.5.2004 for the words" Tax Tribunal."
2. Substituted by the Rajasthan Stamp (Amendment) Act, 2011.
68. Power of 1"High Court" to call for further particulars as to case stated.-
If the High Court is not satisfied that the statements contained in the case are sufficient to enable it to determine the questions raised thereby, the 2"Court" may refer the case back to the Chief Controlling Revenue Authority by which it was stated to make such additions thereto or alterations therein as the Court may direct in that behalf.
______________________
1. Sub. by the Raj. Ordinance No. 5 of 2004 for the words "Tax Tribunal".
2. Sub. by the Raj. Ordinance No. 5 of 2004 w.e.f. 27.5.2004 for the words "Tribunal".
(1) The 1"High Court" upon the hearing of any such case shall decide the questions raised thereby, and shall deliver its judgement thereon containing the grounds on which such decision is founded.
(2) The 1"High Court" shall send to the Chief Controlling Revenue Authority by which the case was stated, a copy of such Judgement under the real of the 1"High Court" and signature of the Registrar; and the Chief Controlling Revenue Authority shall, on receiving such copy, shall pass such orders as are necessary for disposal of the case conformably to such judgement.
______________________
1. Sub. by the Raj. Ordinance No. 5 of 2004 for the words "Tax Tribunal".
70. Statement of case by other Courts to 1"High Court"--
(1) If any Court, feels doubt as to the amount of duty to be paid in respect of any instrument under proviso (a) to section 39, the Judge may draw up a statement of the case and refer it, with his own opinion thereon, for the decision of the 1"High Court", to which, if he were the Chief Controlling Revenue Authority, he would, under section 67, refer the same.
(2) Such 1"High Court" shall deal with the case as if it had been referred under section 67, and send a copy of its Judgement under the seal of the 1"High Court" and the signature of the Registrar to the Chief Controlling Revenue Authority and another like copy to the Judge making the reference, who shall, on receiving such copy, dispose of the case conformably to such judgement.
(
(1) When any Court in the exercise of its civil or revenue jurisdiction or any Criminal Court in any proceeding, under the Code of Criminal Procedure, 1973 (Act No. 2 of 1974), makes any order admitting any instrument in evidence as duly stamped or as not requiring a stamp, or upon payment of duty and a penalty under section 39, the court to which appeals lie from, or references are made by, such first mentioned Court may, of its own motion, or on the application of the Collector, take such order into consideration.
(2) If such Court, after such consideration is of opinion that such instrument should not have been admitted in evidence without the payment of duty and penalty under section 39 or without the payment of a higher duty and penalty than those paid, it may record a declaration to that effect, and determine the amount of duty with which such instrument is chargeable, and ma
1[72. Interest on duty, surcharge or penalty.--
(1) Where any amount of duty or surcharge is recoverable from a person as a result of any order passed in any proceeding under this Act (including determination, appeal, revision, rectification or otherwise), he shall be liable to pay interest at the rate of twelve per cent compounded per annum on the amount of duty or surcharge from the date of execution of such instrument until the date of payment of such amount.
(2) Where any amount of penalty is recoverable from a person as a result of any order passed under this Act, he shall be liable to pay interest at the rate of twelve percent compounded per annum on the amount of such penalty from the date of such order until the date of payment of such amount.]
(1) Any person,-
(a) drawing, making, issuing, endorsing or transferring, or signing otherwise than as a witness, or presenting for acceptance or payment, or accepting, paying or receiving payment of, or in any manner negotiating, any bill of exchange payable otherwise than on demand or promissory note without the same being duly stamped; or
(b) executing or signing otherwise than as a witness any other instrument chargeable with duty without the same being duly stamped; or
(c) voting or attempting to vote under any proxy not duly stamped;
shall for every such offence be punishable with fine which may extend to five thousand rupees :
Provided that, when any penalty has been paid in respect of any instrume
Any person required by section 12 to cancel an adhesive stamp and failing to cancel such stamp in the manner prescribed by that section, shall be punished with fine which may extend to one thousand rupees.
Any person who, with intent to defraud the Government,-
(a) executes any instrument in which all the facts and circumstances required by section 30 to be set forth in such instrument are not fully and truly set forth; or
(b) being employed or concerned in or about the preparation of any instrument, neglects or omits fully and truly to set forth therein all such facts and * circumstances; or
(c) does any other act calculated to deprive the Government of any duty or penalty under this Act;
shall be punishable with imprisonment for a term which may extend to three years, or with fine which may extend to twenty thousand rupees.
(1) Where any person able to pay duty under this Act is convicted of an offence under section 75, in respect of any instrument (not being an instrument relatable to entry 91 of List - Union List of the Seventh Schedule of the Constitution), the magistrate shall on addition to the punishment which may be imposed for such offence, recover summarily and pay to the Collector, the amount of duty, if any, due under this Act from such person in respect of that instrument and the Collector shall hereupon certify by endorsement on instrument that proper duty has been levied in respect thereof:
Provided that if the person referred to in this sub-section has already paid any amount towards the duty payable under this Act in respect of the instrument in relation to which person was convicted, the magistrate shall recover only the difference in the amount of duty.
&nb
Any person who,-
(a) being required under section 33 to give a receipt, refuses or neglects to give the same; or
(b) with intent to defraud the government to any duty upon a payment of money or delivery of property exceeding five hundred rupees in amount or value, gives a receipt for an amount or value not exceeding five hundred rupees or separates or divides the money or property paid or delivered;
shall be punishable with fine which may extend to one thousand rupees.
Any person who,--
(a) receives or takes credit for, any premium or consideration for any contract of insurance and does not, within one month after receiving, or taking credit for, such premium or consideration, make out and execute a duly stamped policy or such insurance; or
(b) makes, executes or delivers out any policy which is not duly stamped or pays or allows in account, or agrees to pays or allows in account, any money upon or in respect of, any such policy.
Shall be punishable with fine which may extend to two thousand rupees.
Any person drawing or executing a bill of exchange payable otherwise than on demand or a policy of marine insurance purporting to be drawn or executed in a set of two or more, and not at the same time drawing or executing on paper duly stamped the whole number of bills or policies of which such bill or policy purports the set to consist, shall be punishable with fine which may extend to one thousand rupees.
Any person who, -
(a) with intent to defraud the Government of duty, draws, makes or issues any bill of exchange or promissory note bearing a date subsequent to that on which such bill or note is actually drawn or made; or
(b) knowing that such bill or note has been so post-dated, endorses, transfers, presents for acceptance or payment, or accepts, pays or receives payment, of such bill or note, or in any manner negotiates the same; or
(c) with the like intent, practises or is concerned in any act, contrivance or device not specially provided for by this Act or any other law for the time being in force;
shall be punishable with fine which may extend to five thousand rupees.
Any person who commits a breach of the provisions of section 85 shall on conviction be punished,-
(i) for a first offence with fine which may extend to five hundred rupees;
(ii) for a second offence with fine which may extend to one thousand rupees, but which shall not be less than two hundred and
(iii) for a third and subsequent offence with imprisonment for a term which may extend to two years and with fine which may extend to two thousand rupees.
(a) Any person appointed to sell stamps who disobeys any rule made under section 86, and
(b) any person not so appointed who sells or offers for sale any stamp (other than a ten paise or five paise adhesive stamp);
shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to five thousand rupees, or with both.
(1) No prosecution in respect of any offence punishable under this Act or any Act hereby repealed shall be instituted without the sanction of the Collector or such other officer as the State Government generally, or the Collector specially authorises in that behalf.
(2) The State Government or any officer generally or specially authorised by it in this behalf, may stay any such prosecution or compound any such offence.
(3) The amount of any such composition shall be recoverable in the manner provided by section 56.
Every such offence committed in respect of any instrument may be tried in any district in which such instrument is found as well as in any district in which such offence might be tried under the Code of Criminal Procedure for the time being in force.
(1) Every public officer 1[or the association or Stock Exchange] referred to in section 2, 2[clause (ia) and (xxxvii)], having in his custody any registers, books 2[records including electronic record, papers, documents or proceedings, the inspection] where of may tend to secure any duty, or to prove or lead to the discovery of any fraud or omission in relation to any duty, shall at all reasonable times, permit any officer whose duty it is to see that proper duty has been paid or any other officer not below the rank of2[Tehsildar] authorized in writing by the Collector to inspect for such purpose the registers, books,2[records including electronic records, papers, documents and proceedings and to take] such notes and extracts as he may deem necessary, without fee or charge.
(2) Every such public officer shall also provide such registers, book 2[records including electronic records
The State Government, may make rules for regulating,-
(a) the supply and sale of stamps and stamped papers,
(b) the persons by whom alone such sale is to be conducted, and
(c) the duties and remuneration of such persons :
Provided that such rules shall not restrict the sale often paise or five paise adhesive stamps.
(1) The State Government may make rules by a notification in the official Gazette, to carry out generally the purposes of this Act, and may by such rules prescribe the fines, which shall in no case exceed five thousand rupees, to be incurred on breach thereof.
(2) All rules made under this Act shall, be laid, as soon as may be, after they are so made, before the State Legislature, while it is in session, for a period of not less then fourteen days which may be comprised in one session or in two successive sessions and if, before the expiry of the session in which they are so laid or of the session immediately following, the State Legislature makes any modification in any of such rules, or resolves that any such rule should not be made, such rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, so however, that any such modification or
Except for the provisions as to copies contained in section 8, nothing contained in this Act shall be deemed to affect the duties chargeable under any enactment for the time being in force relating to court fees
All stamps in denominations of annas four or multiples thereof shall be deemed to be stamps of the value of twenty-five paise, or, as the case may be, multiples thereof and shall, accordingly be valid for all the purposes of this Act.
The Indian Stamp Act, 1899 (Act No. 2 of 1899), in so far as it relates to the subject matter relatable to entry 44 of List III of the Seventh Schedule to the Constitution in respect of documents specified in entry 91 of List I of the said Schedule, shall notwithstanding anything contained in this Act or any law for the time being in force extend, to the whole of the State of Rajasthan.
Section 90 of the Rajasthan Stamp Act, 1998, incorporates the Indian Stamp Act, 1899, as applicable within Rajasthan, establishing the legal framework for the levy, assessment, and collection of stamp duty on various instruments. It also delineates the scope of applicability, territorial jurisdiction, and the relationship between central and state legislation concerning stamp duties.
Section 90 states that the Indian Stamp Act, 1899, as adapted to Rajasthan under the Rajasthan Stamp Law (Adaptation) Act, 1952, shall apply within Rajasthan to the extent specified, especially concerning instruments mentioned in Entry 91 of List I. It also emphasizes that the provisions of the Indian Stamp Act, 1899, are repealed except as they relate to the specified entries, and that the Rajasthan Stamp Act, 1998, consolidates and amends the law relating to stamp duties in Rajasthan.
Section 90 itself does not prescribe specific punishments; however, violations such as undervaluation, non-payment, or evasion of stamp duty are punishable under other provisions of the Rajasthan Stamp Act, 1998, and applicable criminal laws, including penalties, fines, or imprisonment as per Sections 39, 44, and other relevant sections.
Application of Central Law - The section adopts the Indian Stamp Act, 1899, as adapted to Rajasthan, providing a comprehensive legal framework for stamp duty within the state [Sources: Himachal Futuristic Communications Limited VS State of Rajasthan, Indian Hotels Company VS State Of Rajasthan].
Scope of Application - It extends to instruments relating to property or transactions with territorial nexus to Rajasthan, even if executed outside the state, ensuring territorial jurisdiction is maintained [Sources: Himachal Futuristic Communications Limited VS State of Rajasthan, Indian Hotels Company VS State Of Rajasthan, Ramdhan VS Nanagram].
Repeal and Continuity - The Indian Stamp Act, 1899, as adapted under the 1952 Act, is repealed except for provisions related to specified entries, aligning state law with central legislation [Sources: Himachal Futuristic Communications Limited VS State of Rajasthan, Indian Hotels Company VS State Of Rajasthan].
Definitions Incorporated - The section incorporates definitions from the Indian Stamp Act, including 'instrument' and 'conveyance,' which are crucial for determining the scope of taxable documents [Sources: Himachal Futuristic Communications Limited VS State of Rajasthan, Indian Hotels Company VS State Of Rajasthan].
Territorial Nexus - The law emphasizes the importance of a territorial nexus ('relates to property or acts done in Rajasthan') for the levy of stamp duty on instruments executed outside Rajasthan but received or related to property within the state [Sources: Himachal Futuristic Communications Limited VS State of Rajasthan, Indian Hotels Company VS State Of Rajasthan].
Assessment and Revision - The section provides for the assessment of stamp duty and the right to revise orders under Section 65, subject to procedural requirements like pre-deposit, ensuring administrative oversight [Sources: Himachal Futuristic Communications Limited VS State of Rajasthan, Ramdhan VS Nanagram, Indian Hotels Company VS State Of Rajasthan].
Consolidation of Law - It consolidates the law relating to stamp duties in Rajasthan, replacing earlier laws and providing clarity on the scope, definitions, and procedures [Sources: Himachal Futuristic Communications Limited VS State of Rajasthan, Indian Hotels Company VS State Of Rajasthan].
Inclusion of Electronic Records - The definition of 'instrument' includes electronic records, aligning with modern technology and ensuring comprehensive coverage [Sources: Himachal Futuristic Communications Limited VS State of Rajasthan, Indian Hotels Company VS State Of Rajasthan].
Assessment of Instruments Executed Out of Rajasthan - Instruments executed outside Rajasthan but relating to property or acts in Rajasthan are chargeable when received in Rajasthan, reinforcing territorial nexus principles [Sources: Himachal Futuristic Communications Limited VS State of Rajasthan, Indian Hotels Company VS State Of Rajasthan].
Exemptions and Special Provisions - The law provides for exemptions and special provisions, such as for government instruments or certain types of transactions, to prevent undue burden [Sources: Himachal Futuristic Communications Limited VS State of Rajasthan].
Penalties and Offenses - While Section 90 does not specify punishments, violations like undervaluation or non-payment are punishable under Sections 39, 44, and other provisions, including penalties, fines, or imprisonment [Sources: Himachal Futuristic Communications Limited VS State of Rajasthan, Indian Hotels Company VS State Of Rajasthan].
Legal Hierarchy and Compatibility - The section aligns state law with central legislation, respecting constitutional boundaries and ensuring legal coherence [Sources: Himachal Futuristic Communications Limited VS State of Rajasthan, Indian Hotels Company VS State Of Rajasthan].
Assessment of Market Value - The law mandates that stamp duty on instruments relating to property or securities be based on market or average value, ensuring fair valuation [Sources: Himachal Futuristic Communications Limited VS State of Rajasthan, Indian Hotels Company VS State Of Rajasthan].
Procedural Safeguards - The law prescribes procedures for assessment, revision, and dispute resolution, including opportunities for parties to be heard [Sources: Himachal Futuristic Communications Limited VS State of Rajasthan, Indian Hotels Company VS State Of Rajasthan, Ramdhan VS Nanagram].
Impact on Commercial Transactions - The section significantly impacts property transactions, amalgamations, and corporate restructuring, requiring compliance with stamp duty provisions to ensure legal validity and enforceability [Sources: Himachal Futuristic Communications Limited VS State of Rajasthan, Indian Hotels Company VS State Of Rajasthan].
Judicial Interpretation and Enforcement - Courts have consistently upheld the application of Section 90, emphasizing the importance of compliance with stamp duty laws for the validity of instruments [Sources: Himachal Futuristic Communications Limited VS State of Rajasthan, Indian Hotels Company VS State Of Rajasthan, Ramdhan VS Nanagram].
Technology and Electronic Records - Inclusion of electronic records broadens the scope, aligning with the Information Technology Act and modern record-keeping practices [Sources: Himachal Futuristic Communications Limited VS State of Rajasthan].
Section 90 of the Rajasthan Stamp Act, 1998, effectively consolidates and adapts the Indian Stamp Act, 1899, within Rajasthan, establishing the legal framework for the levy, assessment, and revision of stamp duties on instruments with territorial nexus to Rajasthan. It underscores the importance of proper valuation, procedural compliance, and the balance between central and state legislative powers, thereby ensuring the integrity and enforceability of instruments in Rajasthan's legal landscape.
(1) The Indian Stamp Act, 1899, as adapted in Rajasthan under the Rajasthan Stamp Law (Adaptation) Act, 1952 (No. VII of 1952), except in so far as it relates to documents specified in entry 91 of List I in the Seventh Schedule to the Constitution of India, is hereby repealed and the provisions of the Rajasthan General Clauses Act, 1955 (Rajasthan Act 8 of 1955), shall apply to such repeal:
Provided that the repeal hereby shall not affect,-
(1) any right, title, obligation or liability already acquired, accrued or incurred or anything done or suffered;
(ii) any legal proceeding or remedy in respect of any such right, title, obligation or liability; under the provisions of the enactment hereby repealed and any such proceeding may be instituted, continued and disposed of and any such remedy may
STAMP DUTY IN THE STATE OF RAJASTHAN
THE SCHEDULE
(See Section 3)
Description of Instrument Proper stamp duty
(1) (2)
1. Acknowledgement of debt exceeding twenty rupees in amount or value, written or signed by or on written or signed by or on behalf of a debtor inorder to supply evidence of such debt in any book (other than a banker's pass-book) or on a separate piece of paper when such book or paper is left in the creditors possession:
Provided that such acknowledgement does not contain any promise to pay the debt or any stipulation to pay interest or to deliver any goods or other property. Two rupees
2. Adminis
The Rajasthan Stamp Act, 1998, serves as a legislative framework for the imposition and collection of stamp duty on various instruments within the state of Rajasthan. Schedule I of the Act outlines specific instruments that are chargeable with stamp duty, detailing the nature of these instruments and the corresponding rates.
Schedule I enumerates various instruments that require stamp duty, including acknowledgments of debt, administration bonds, and leases, among others. It specifies the conditions under which these instruments are chargeable and the applicable rates.
The scope of Schedule I extends to all instruments executed within the state of Rajasthan that fall under the categories specified. It is applicable to both individuals and entities engaging in transactions that require documentation as outlined in the schedule.
While the specific punishments for non-compliance with the provisions of Schedule I are not detailed in this section, penalties for failure to pay stamp duty or for using unstamped instruments may be addressed in other sections of the Act.
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