Revenue Stamp

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ghanshyam (Querist)

08 December 2007 If a payment voucher exceeding Rs.5000.00 including more than one payments to different parties then is there any requirement of affixing revenue stamp on voucher?

thanx
Ghanshyam

R.V.RAO

R.V.RAO (Expert)

08 December 2007 EARLIER, IN OUR CA CLUB FORUM
SRI. SUBRAMANYA SHARMA.G AND I ANSWERED A SIMILAR QUERY, REPRODUCED BELOW FOR PRESENT REFERENCE.
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

Expert : R.V.RAO
Posted On : 9/14/2007 12:51:27 PM
REVENUE STAMP NEEDS TO BE AFFIXED FOR EACH AND ANY CASH PAYMENT ABOVE RS. 500/-. THIS IS THE LAW AS PER STAMP ACT. EARLIER THIS LIMIT WAS RS. 20/-.THIS IS TO AVOID 1.FUTURE LITIGATIONS ON NON COMPLIANCE OF STAMP ACT PROVISIONS.
2. INTERNAL AUDIT AND STATUTORY AUDIT OBJECTIONS.
R.V.RAO

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K V Subba Rao

K V Subba Rao (Expert)

08 December 2007 In a case where one Acquittance Voucher is prepared showing amounts payable to, say, 100 Payees and payments exceeding Rs 5000 TO EACH PERSON are made to 20 persons and payments below Rs 5000 TO EACH PERSON are made to 80 persons
we have to affix 20 revenue stamps.

With regard to remaining 80 persons, the sum total of payments to all 80 persons may exceed Rs 5000; yet there is no need to affix revenue stamp because payments made to individual Payees is less than Rs 5000.

In case of payments of one and the same nature at one point of time, it is customery to prepare one consolidated statement and one Cash Voucher so as to obtain acquittances of individual signatures against each name and amount. This is only for admimistrative convenience.

To put it briefly, number of revenue stamps should be equal to number of Payees who are paid more than Rs 5000 INDIVIDUALLY

In a different case, say Rs 1000 each is paid to 6 persons. In this case, total amount Rs 6000 is abo ve the limit of Rs 5000. Still payments to all individual persons is less than Rs 5000. In this case, I feel there is no need to affix revenue stamp