Revenue stamp duty

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vinay mehta (Querist)
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12 November 2013 The query: one of my friend have sole proprietorship construction business and he regularly recieves contract from govt co and other co. He recieves amount in cheque or e payment from pvt co. now when he recieves from private co he is asked to affix revenue stamp above rs 5000 payment but in case of govt co there is no sucj requirement. Kindly throw a light on this issue as to is there any requirement and obligation of my friend and is govt co exempt?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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14 November 2013 Section 2(2 3) of the Indian Stamp Act 1899 makes it mandatory for affixing of stamp on any receipt as defined therein above Rs 5000 .[Previously it was Rs 500] 2(23) "Receipt" includes any note, memorandum or writing- (a) whereby any money, or any bill of exchange, cheque or promissory note is acknowledged to have been received, or (b) whereby any other movable property is acknowledged to have been received in satisfaction of a debt, or (c) whereby any debt or demand, or any part of a debt or demand, is acknowledged to have been satisfied or discharged, or (d) which signifies or imports any such acknowledgment; and whether the same is or is not signed with the name of any person " Therefore, affixing stamp does not depend on month or year , but every time a receipt is given. If every month receipt above Rs 5000 is given, stamp has to be affixed there. If only one receipt at the end of year is given , one stamp is required. The basic requirement under the law is RECEIPT.

please note that government is exempt. However, government companies are not exempt.

Read more at: https://www.caclubindia.com/forum/revenue-stamp-on-voucher-60499.asp#.UoPtaieKK9g

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