Gaurav Toksha (Student CA IPC / IPCC) (73 Points)
29 May 2013hi
i want to know what is stamp duty ,what is the concept,why there is a need to pay stamp duty
i am a newbie in commerce knowledge ,i know it is a silly question to ask as everybody know this
but i am unable to help my curiosity 
Ayyswariya RG
(Knowledge Seeker)
(3711 Points)
Replied 31 May 2013
Stamp duty is the tax placed on legal documents usually in the transfer of assets or property.
It is levied by the state govt.
A physical stamp (revenue stamp) had to be attached upon the document to denote that stamp duty had been paid before the document was legally effective.
Stamp Duty stays payable whenever any contractual transaction or other property has entered into, here in even India or abroad.
For the stamp duty to be paid, one has to refer to the respective state's stamp duty rates.
Thanks
Gaurav Toksha
(Student CA IPC / IPCC)
(73 Points)
Replied 01 June 2013
CA CMA CS Ram Pavan Kumar Melam
(CA)
(6980 Points)
Replied 06 June 2013
It depends on the kind of instrument. Section 29 of the Indian Stamp Act, 1899 regarding the duties by whom payable it provides
“In the absence of any 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 Schedule I, namely:-
No. 2. (Administration Bonds),
No. 6. (Agreement relating to Deposit of Title deeds, Pawn or Pledge)],
No. 13. (Bill of Exchange),
No. 15. (Bonds),
No. 16. (Bottomry Bond),
No. 26. (Customs Bond),
No. 27. (Debenture),
No. 32. (Further Charge),
No. 34. (Indemnity-bond),
No. 40. (Mortgage-deed),
No. 49. (Promissory-note),
No. 55. (Release),
No. 56. (Respondentia Bond),
No. 57. (Security Bond or Mortgage-deed),
No. 58. (Settlement),
No. 62(a). (Transfer of shares in an incorporated company or other body corporate),
No. 62(b). (Transfer of debentures, being marketable securities, whether the debenture is liable to duty or not, except debentures provided for by section 8),
No. 62(c). (Transfer of any interest secured by a bond, mortgage-deed or policy of insurance),
by the person drawing, making or executing such instrument:
(b) in the case of a policy of insurance other than fire-insurance- by the person effecting the insurance:
(bb) in the case of a policy of fire-insurance- by the person issuing the policy:]
(c) in the case of a conveyance (including a reconveyance of mortgaged property) by the grantee: in the case of a lease or agreement to lease- by the lessee or intended lessee:
(d) in the case of a counterpart of a lease- by the lessor:
(e) in the case of an instrument of exchange- by the parties in equal shares:
(f) in the case of a certificate of sale- by the purchaser of the property to which such certificate relates: and,
(g) in the case of an instrument of partition– by the parties thereto in proportion to their respective shares in the whole property partitioned, or, when the partition is made in execution of an order passed by a Revenue-authority or civil court or arbitrator, in such proportion as such authority, court or arbitrator directs.
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