revenue stamp

This query is : Resolved

Prateek Biyani (Querist)
Follow

22 November 2007 What is the use of revenue stamp to be affixed on the vouchers amounting more than 5000/- ? is there any other criteria of requirement of revenue stamp ? Is it compulsory to affix revenue stamp on each voucher exceeding Rs.5000/- or there is any other provision.

S.RAVICHANDRAN

S.RAVICHANDRAN (Expert)
Follow

22 November 2007 Revenue stamp comes into importance in case the transaction is brought into the Court of Law.

If the transaction voucher does not contain the revenue stamp, then the Judge may ask to pay the stamp charges with fine so as to consider the transaction for his perusal.

So, non affixing of revenue stamp will not invalidate the allowability of expenditure under the Income Tax Act.

Message likes : 1 times

R.V.RAO

R.V.RAO (Expert)
Follow

22 November 2007 Pl note that the Stamp Act is a State Subject and local stamp Act is to be checked for the quantum of stamps to be affixed. For Instance, In Tamilnadu, all cash disbursements in excess of Rs 500/- revenue stamp of Re1/- is to be affixed at the time of payment of disbursement.Failure to affix the stamp does not invalidate the transaction and only when the matter is taken up for adjudication, the issue would crop up and additional fee is to be paid before the case if any is proceeded upon
(this was the answer given by sri subramania sarma g. in our forum some time back on the subject. )
i replied as below to a similar query
REVENUE STAMP NEEDS TO BE AFFIXED FOR ANY CASH PAYMENT ABOVE RS. 500/-. THIS IS THE LAW AS PER STAMP ACT. EARLIER THIS LIMIT WAS RS. 20/-
AS FAR AS SUPPORTING IS CONCERNED NO CASHIER OR ACCOUNTANT IS COMFORTABLE TO MAKE CASH PAYMENTS WITHOUT A SUPPORT OR AUTHORISATION ,IRRESPECTIVE OF THE AMOUNT INVOLVED.
WHILE PARA ONE ABOVE REFERS TO LAW ,PARA TWO ABOVE IS OF EACH ORGANISATION'S INTERNAL RULES.SRI RAVI IS RIGHT THAT LACK OF REVENUE STAMP DOES NOT INVALIDATE ALLOWABILITY UNDR IT ACT.
C.A.R.V.RAO

Message likes : 1 times