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(Chapter 11.-Stamp-duties. Secs. 17-20.)

respect of another instrument, the payment of such last-mentioned duty shall if application is made in writing to the Collector for that purpose, and on production of both the instruments, be denoted upon such first-mentioned instrument by endorsement under the hand of the Collector or in such other manner (if any) as the Governor General in Council may by rule prescribe.

Instruments executed in British India. Instruments other than bills, cheques and notes executed out of British India.

Bills, cheques and notes drawn out of Brit. ish India.

C.-Of the time of stamping Instruments. 17. All instruments chargeable with duty and executed by any person in British India shall be stamped before or at the time of execution.

18. (1) Every instrument chargeable with duty executed only out of British India, and not being a bill of exchange, cheque or promissory note, may be stamped within three months after it has been first received in British India.

(2) Where any such instrument cannot, with reference to the description of stamp prescribed therefor, be duly stamped by a private person, it may be taken within the said period of three months to the Collector, who shall stamp the same, in such manner as the Governor General in Council may by rule prescribe, with a stamp of such value as the person so taking such instrument may require and pay for.

19. The first holder in British India of any bill of exchange, cheque or promissory note drawn or made out of British India shall, before he presents the same for acceptance or payment, or endorses, transfers or otherwise negotiates the same in British India, affix thereto the proper stamp and cancel the same :

Provided that,
(a) if, at the time any such bill of exchange, cheque or note comes into

the hands of any holder thereof in British India, the proper
adhesive stamp is affixed thereto and cancelled in manner prescribed
by section 12 and such holder has no reason to believe that such
stamp was affixed or cancelled otherwise than by the person and
at the time required by this Act, such stamp shall, 80 far as
relates to such holder, be deemed to have been duly affixed and

cancelled : (6) nothing contained in this proviso shall relieve any person from any

penalty incurred by him for omitting to affix or cancel a stamp.

D.-Of Valuations for Duty. 20. (1) Where an instrument is chargeable with ad valorem duty in

Conversion

(Chapter 11.-Slamp-duties. Secs. 21-24.)

ance

respect of any money expressed in any currency other than that of British of amount India, such duty shall be calculated on the value of such money in the cur.

expressed

in foreign rency of British India according to the current rate of exchange on the day of currencies. the date of the instrument.

(2) The Governor General in Council may, from time to time, by noti. fication in the Gazette of India, prescribe ? a rate of exchange for the conversion of British or any foreign currency into the currency of British India for the purposes of caloulating stamp-duty, and such rate shall be deemed to be the current rate for the purposes of sub-section (1). 21. Where an instrument is chargeable with ad valorem duty in respeot Stock and

marketable of any stock or of any marketable or other security, such duty shall be

securities calculated on the value of such stock or security according to the average how to be

valued. price or the value thereof on the day of the date of the instrument. 22. Where an instrument contains a statement of current rate of ex- Effect of

statement change, or average price, as the case may require, and is stamped in accord. of rate of with such stalement, it shall, so far as regards the subject- exchange or

average matter of such statement, be presumed, until the contrary is proved, to be price. duly stamped.

23. Where interest is expressly made payable by the terms of an instru- Instruments ment, such instrument shall not be chargeable with duty higher than that reserving

interest. with which it would have been chargeable had no mention of interest been made therein.

24. Where any property is transferred to any person in consideration, How transfer wholly or in part, of any debt due to him, or subject either certainly or con- in considera

tion of debt, tingently to the payment or transfer of any money or stock, whether being or subject to

future pay. or constituting a charge or incumbrance upon the property or not, such debt,

ment, etc., money or stock is to be deemed the whole or part, as the case may be, of the to be

charged. consideration in respect whereof the transfer is chargeable with ad valorem duty :

Provided that nothing in this section shall apply to any such certificate of sale as is mentioned in Article No. 18 of Schedule I.

Explanation.- In the case of a sale of property subject to a mortgage or other incumbrance, any unpaid mortgage-money or money charged, together with the interest (if any) due on the same, ehall be deemed to be part of the consideration for the sale :

Provided that, where property subject to a mortgage is transferred to the

· For notification prescribing such rates, soe No. 1281-S.R., dated the 17th March, 1899– Gazette of India, 1899, Pt. I, p. 153.

(Chapter II.-Stamp-duties. Secs. 25-26.)

mortgagee, be shall be entitled to deduct from the duty payable on the transfer the amount of any duty already paid in respect of the mortgage.

Illustrations.

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(1) A owes B Rs. 1,000. A sells a property to B, the consideration being Rs. 500 and the release of the previous debt of Rs. 1,000. Stamp duty is payable on Rs. 1,500.

(2) A sells a property to B for Rs. 500 which is subject to a mortgage to C for Rs. 1,000 and unpaid interest Rg. 200. Stamp-duty is payable on Rs. 1,700.

(3) A mortgages a house of the value of Rs. 10,000 to B for Rs. 5,000. B afterwards buys the house from A. Stamp-duty is payable on Rs. 10,000 less the amount of stamp-duty already paid for the mortgage.

25. Where an instrument is executed to secure the payment of an annuity or other som payable periodically, or where the consideration for a conveyance is an annuity or other sum payable periodically, the amount secured by such instrument or the consideration for such conveyance, as the case may be, shall, for the purposes of this Act, be deemed to be,(a) where the sum is payable for a definite period so that the total

amount to be paid can be previously ascertained—such total

amount; (6) wbere the sum is payable in perpetuity or for an indefinite

time not terminable with any life in being at the date of such instrument or conveyance, the total amount which, according to the terms of such instrument or conveyance, will or may be payable during the period of twenty years calculated from the

date on which the first payment becomes due : and (c) where the sum is payable for an indefinite time terminable with any

life in being at the date of such instrument or conveyance—the maximum amount which will or may be payable as aforesaid during the period of twelve years calculated from the date on

which the first payment becomes due. 26. Where the amount or value of the subject-matter of any instrument chargeable with ad valorem duty cannot be, or in the case of an instrument executed before the commencement of this Act) could not have been, ascertained at the date of its execution or first execution, nothing shall be claimable under such instrument more than the highest amount or value for which, if stated in an instrument of the same description, the stamp actually used would, at the date of such execution, have been sufficient :

Provided that, in the case of the lease of a mine in which a share of the produce is received as the rent or part of the rent, it shall be sufficient to have estimated such share, for the purpose of stamp-duty, at twenty thousand

Stamp where
value of sub-
ject-matter
is indeter
minate.

(Chapter II.-stamp-duties. Secs. 27-29.)

rupees a year, and the whole amount of such share, whatever it may be, shall be claimable under such lease :

Provided also that, where proceedings have been taken in respect of an instrument under section 31 or 41, the amount certified by the Collector shall be deemed to be the stamp actually used at the date of execution. 27. The consideration (if any) and all other facts and circumstances Facts affect

ing duty to affecting the chargeability of any instrument with duty, or the amount of the be set forth

in instrument. duty with which it is chargeable, shall be fully and truly set forth therein. 28. (1) Where any property has been contracted to be sold for one con- Direction as to

duty in case sideration for the whole, and is conveyed to the purchaser in separate parts of certain by different instruments, the consideration shall be apportioned in such mad

conveyances. ner as the parties think fit, provided that a distinct consideration for each separate part is set forth in the conveyance relating thereto, and such conveyance sball be chargeable with ad valorem duty in respect of such distinct consideration.

(2) Where property contracted to be purchased for one consideration for the whole by two or more persons jointly, or by any person for himself and others, or wholly for others, is conveyed in parts by separate instruments to the persons by or for whom the same was purchased, for distinct parts of the consideration, the conveyance of each separate part shall be chargeable with ad valorem duty in respect of the distinct part of the consideration therein specified.

(3) Where a person, baving contracted for the purchase of any property but not having obtained a conveyance thereof, contracts to sell the same to any other person and the property is in consequence conveyed immediately to the sub-purchaser, the conveyance shall be chargeable with ad valorem duty in respect of the consideration for the sale by the original purchaser to the sub-purchaser.

(4) Where a person, having contracted for the purchase of any property but not having obtained a conveyance thereof, contracts to sell the whole, or any part thereof, to any other person or persons and the property is in conge. quence conveyed by the original seller to different persons in parts, the conveyance of each part sold to a sub-purchaser shall be chargeable with ad valorem duty in respect only of the consideration paid by such sub-purchaser, withuut regard to the amouut or value of the original consideration; and the conveyance of the residue (if any) of such property to the original purchaser shall be chargeable with ad valorem duty in respect only of the excess of the original consideration over the aggregate of the considerations paid by the eub-purchasers ;

C2

(Chapter 11.-Stamp-duties. Sec. 29.)

Duties by whom payo able,

Provided that the duty on such last-mentioned conveyance shall in no case be less than one rupee.

(5) Where a sub-purchaser takes an actual conveyance of the interest of the person immediately selling to bim, which is chargeable with ad valorem duty in respect of the consideration paid by him and is duly stamped accord. ingly, any conveyance to be afterwards made to him of the same property by the original celler shall be chargeable with a duty equal to that which would be chargeable on a conveyance for the consideration obtained by such original seller, or, where such duty would exceed five rupees, with a duty of five rupees.

1.-Duty by whom payable. 29. In the absence of an 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 Bond),
No. 6 (Agreement to mortgage),
No. 13 (Bill of Exchange),
No. 15 (Bond),
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 (6) (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, mort

gage-deed or policy of insurance), by the person drawing, making or executing such instrument :

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