Friday 19 July 2019

Whether government is liable to pay stamp duty on documents executed in its behalf?

Section 3 in The Indian Stamp Act, 1899
3. Instruments chargeable with duty.—Subject to the provisions of this Act and the exemptions contained in Schedule I, the following instruments shall be chargeable with duty of the amount indicated in that Schedule as the proper duty therefore, respectively, that is to say—
(a) every instrument mentioned in that Schedule which, not having been previously executed by any person, is executed in 20 [India] on or after the first day of July, 1899;
(b) every bill of exchange 21 [payable otherwise than on demand] 22 [***] or promissory note drawn or made out of 20 [India] on or after that day and accepted or paid, or presented for acceptance or payment, or endorsed, transferred or otherwise negotiated, in 20 [India]; and
(c) every instrument (other than a bill exchange 22 [***] or promissory note) mentioned in that Schedule, which, not having been previously executed by any person, is executed out of 20 [India] on or after that day relates to any property situate, or to any matter or thing done or to be done, in 20[India] and is received in 20 [India]: Provided that no duty shall be chargeable in respect of—
(1) any instrument executed by, or on behalf of, or in favour of, the Government in cases where, but for this exemption, the Government would be liable to pay the duty chargeable in respect of such instrument;
Section 35 in The Indian Stamp Act, 1899
35. Instruments not duly stamped inadmissible in evidence, etc.—No instrument chargeable with duty shall be admitted in evidence for any purpose by any person having by law or consent of parties authority to receive evidence, or shall be acted upon, registered or authenticated by any such person or by any public officer, unless such instrument is duly stamped: Provided that—
(e) nothing herein contained shall prevent the admission of any instrument in any Court when such instrument has been executed by or on behalf of 66 [the 67 [Government]] or where it bears the certificate of the Collector as provided by section 32 or any other provision of this Act.
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