Should revenue stamp be affixed on money receipt if payment more than Rs. 5,000 is made through A/c payee cheque?
Ravi Dakliya (Chartered Accountant) (169 Points)
01 July 2010Should revenue stamp be affixed on money receipt if payment more than Rs. 5,000 is made through A/c payee cheque?
CA Sanjay Jha
(ACCOUNTS MANAGER)
(914 Points)
Replied 01 July 2010
GENERALLY REVENUE STAMP TO BE FIXED ONLY PAYMENT PAID THROUGH CASH MORE THAN OF RS. 5000/-
BUT ANY OTHER CASE GOVERTMENT RECEIPT THROUGH CHEQUE IT SHOULD BE REQUIRED REVENUE STAMP.
IN OTHER SIDE I TELLING U IF ANY OTHER ACT SPECIALY WRITTEN THEN FOLLOW IT
neha AWASTHI
(hh)
(230 Points)
Replied 01 July 2010
The answers to your queries are as under:
1. In view of the amendment of Schedule I, to the Indian Stamp Act 1899, the one-rupee stamp is required to be affixed on any receipt, the amount or value of which exceeds Rs 5,000. This amendment has come w.e.f. 10.09.04. The stamp is required to be affixed in respect of receipt which has been defined as under in Section 2(23) of the aforesaid Act:“Receipt” include any note, memorandum or writing-
o whereby any money, or any bill of exchange, cheque or promissory note is acknowledged to have been received, or
o whereby any other movable property is acknowledged to have been received in satisfaction of a debt, or
o whereby any debt or demand, or any part of a debt or demand, is acknowledged to have been satisfied or discharged, or
o which signifies or imports any such acknowledgement, and whether the same is or is not signed with the name of any person.
2. In view of the above, the cheque received would also be covered for the affixation of the stamp.
3. The withdrawals from bank account is not in the nature of receipt as defined herein above. However, the payment on a maturity of fixed deposit would definitely be covered.
4. In my opinion, such receipt is not perfect.
5. The instrument which is not duly stamped is inadmissible as an evidence.
Ravishankar K
(Accountant)
(461 Points)
Replied 17 March 2012
we are a central government organisation and we have a client which is another central govt organisation, while providing invoices to them they ask us to affix revenue stamp on the invoices, which we are affixing, but i think we are exempt from stamp duty act, so whenever we generate invoices or provide anyone receipt we are not required to affix 1 Rs revenue stamp on the invoice / receipt.
Can someone please clarify the exemption.
CAclubindia
