THE STAMP ACT, 1899
(Act II of
1899)
C O N T E N T S
Sections
CHAPTER I
Preliminary
1. Short title, extent and
commencement.
2. Definitions.
CHAPTER II
Stamp-Duties
A-Of the
liability of instruments to duty
3. Instruments chargeable
with duty.
4. Several instruments used
in single transaction of sale, mortgage or settlement.
5. Instruments relating to
several distinct matters.
6. Instruments coming within several descriptions in Schedule
I.
7. Policies of
sea-insurance.
8. Bonds, debentures or
other securities, issued on loans under Act XI, 1879.
9. Power to reduce, remit or
compound duties.
9-A. Power of Provincial
Government to exempt certain instruments.
B-Of stamps
and the mode of using them
10. Duties how to be paid.
11. Use of adhesive stamps.
12. Cancellation of adhesive
stamps.
13. Instruments stamped with impressed stamps how to be
written.
14. Only one instrument to be
on same stamp.
15. Instrument written
contrary to section 13 or 14 deemed unstamped.
16. Denoting Duty.
C-Of the time
of stamping Instruments
17. Instruments executed in
18. Instruments other than bills and notes executed out of
19. Bills and notes drawn out
of
D-Of
valuations for duty
20. Conversion of amount
expressed in foreign currencies.
21. Stock and marketable
securities how to be valued.
22. Effect of statement of
rate of exchange or average price.
23. Instruments reserving
interest.
23-A. Certain
instruments connected with mortgages of marketable securities to be chargeable
as agreements.
24. How
transfer in consideration of debt, or subject to future payment, etc., to be
charged.
25. Valuation in case of
annuity, etc.
26. Stamp where value of
subject-matter is indeterminate.
27. Facts affecting duty to
be set forth in instrument.
27-A. Valuation of Urban Land.
28. Direction as to duty in
case of certain conveyances.
E-Duty by whom
payable
29. Duties by whom payable.
30. Obligation to give
receipt in certain cases.
CHAPTER III
Adjudication as to Stamps
31. Adjudication as to proper
stamp.
32. Certificate by Collector.
CHAPTER IV
Instruments Not
Duly Stamped
33. Examination and
impounding of instruments.
34. Special provision as to
unstamped receipts.
35. Instruments not duly stamped inadmissible in evidence, etc.
36. Admission of instrument
where not to be questioned.
37. Admission of improperly
stamped instruments.
38. Instruments impounded how
dealt with.
39. Collector’s power to
refund penalty paid under section 38, sub-section (1).
40. Collector’s power to
stamp instruments impounded.
41. Instruments unduly
stamped by accident.
42. Endorsement
of instruments on which duty has been paid under section 35, 40 or 41.
43. Prosecution for offence
against Stamp-law.
44. Persons paying duty or
penalty may recover same in certain cases.
45. Power of Revenue
Authority to refund penalty or excess duty in certain cases.
46. Non-liability for loss of instruments sent under section 38.
47. Power
of payer to stamp bills and promissory notes received by him unstamped.
48. Recovery of duties and
penalties.
CHAPTER V
Allowances for
Stamps in Certain Cases
49. Allowance for spoiled
stamps.
50. Application for relief
under section 49 when to be made.
51. Allowance in case of
printed forms no longer required by Corporations.
52. Allowance for misused
stamps.
53. Allowance for spoiled or misused stamps how to be made.
54. Allowance for stamps not
required for use.
55. Allowance on renewal of
certain debentures.
CHAPTER VI
Reference and
Revision
56. Control
of, and statement of case to, Chief Revenue Authority.
57. Statement of case by Chief Revenue Authority to High Court.
58. Power of High Court to
call for further particulars as to case stated.
59. Procedure in disposing of
case stated.
60. Statement of case by
other Courts to High Court.
61. Revision of certain
decisions of Courts regarding the sufficiency of stamps.
CHAPTER VII
Criminal
Offences and Procedure
62. Penalty
for executing, etc., instrument not duly stamped.
63. Penalty
for failure to cancel adhesive stamp.
64. Penalty for omission to comply with
provisions of section 27.
65. Penalty
for refusal to give receipt, and for devices to evade duty on receipts.
66. Penalty
for not making out policy, or making one not duly stamped.
67. Penalty
for not drawing full number of bills or marine policies purporting to be in
sets.
68. Penalty
for post-dating bills, and for other devices to defraud the revenue.
69. Penalty
for breach of rule relating to sale of stamps and for unauthorised sale.
70. Institution
and conduct of prosecutions.
71. Jurisdiction
of Magistrates.
72. Place
of trial.
CHAPTER VIII
Supplemental
Provisions
73. Books,
etc., to be open to inspection.
74. Power
to make rules relating to sale of stamps.
75. Power
to make rules generally to carry out Act.
76. Publication of rules.
76-A. Delegation of certain
powers.
77. Savings as to court-fees.
78. Act to be translated and
sold cheaply.
79. [Repealed].
SCHEDULE-I
Stamp-Duty on Instruments
Schedule II
[Repealed]
[1]THE STAMP ACT, 1899
(Act II of
1899)
[
An Act to
consolidate and amend the law relating to Stamps
WHEREAS
it is expedient to consolidate and amend the law relating to stamps;
It is
hereby enacted as follows:-
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.– (1) This Act may be called
the [2][* * *] Stamp Act, 1899.
[3][(2) It extends to the whole of
(3) It shall come into
force on the first day of July, 1899.
2. Definitions.– In this Act, unless there
is something repugnant in the subject or context,–
(1) “banker”
includes a bank and any person acting as a banker;
(2) “bill of exchange” means a bill of
exchange as defined by the Negotiable Instruments Act, 1881, and includes also
a hundi, and any other document entitling or purporting to entitle any person,
whether named therein or not, to payment by any other person of, or to draw
upon any other person for, any sum of money;
(3) “bill
of exchange payable on demand” includes–
(a) an order for the payment of any sum of money
by a bill of exchange or promissory note, or for the delivery of any bill of
exchange or promissory note in satisfaction of any sum of money, or for the
payment of any sum of money, out of any particular fund which may or may not be
available, or upon any condition or contingency which may or may not be
performed or happen;
(b) an order for the payment of any sum of money
weekly, monthly or at any other stated periods; and
(c) a letter of credit, that is to say, any
instrument by which one person authorises another to give credit to the person
in whose favour it is drawn;
(4) “bill
of lading” includes a “through bill of lading”, but does not include a
mate’s receipt;
(5) “bond”
includes–
(a) any instrument whereby a person obliges himself to pay money to
another, on condition that the obligation shall be void if a specified act is
performed, or is not performed, as the case may be;
(b) any instrument attested by a witness and not payable to order or
bearer, whereby a person obliges himself to pay money to another; and
(c) any instrument so attested, whereby a person
obliges himself to deliver grain or other agricultural produce to another;
(6) “chargeable” means, as applied to an
instrument executed or first executed after the commencement of this Act, chargeable
under this Act and, as applied to any other instrument, chargeable under the
law in force in [4][Pakistan]
when such instrument was executed, or where several persons executed the
instrument at different times, first executed;
(7) “cheque” means a bill of exchange drawn
on a specified banker and not expressed to be payable otherwise than on demand;
(8) [5][* * * * * * * * * * * *]
(9) “Collector”–
[6][(a) means the Collector of a district; and]
(b) includes
a [7][District
Officer (Revenue)] and any officer whom [8][the
Provincial Government] may, by notification in the Official Gazette, appoint in
this behalf;
(10) “conveyance”
includes a conveyance on sale and every instrument by which property, whether
movable or immovable, is transferred inter
vivos and which is not otherwise specifically provided for by Schedule I;
(11) “duly stamped”, as applied to an
instrument, means that the instrument bears an adhesive or impressed stamp of
not less than the proper amount and that such stamp has been affixed or used in
accordance with the law for the time being in force in [9][Pakistan];
(12) “executed”
and “execution”, used with reference
to instruments, mean “signed” and “signature”;
(12-A) [10][* * * * * * * * * * * *]
(13) “impressed
stamp” includes–
(a) labels
affixed and impressed by the proper officer, and
(b) stamps
embossed or engraved on stamped paper;
(14) “instrument”
includes every document by which any right or liability is, or purports to be,
created, transferred, limited, extended, extinguished or recorded;
(15) “instrument of partition” means any
instrument whereby co-owners of any property divide or agree to divide such
property in severalty, and includes also a final order for effecting a
partition passed by any Revenue-authority or any Civil Court and an award by an
arbitrator directing a partition;
(16) “lease”
means a lease of immovable property, and includes also–
(a) a patta;
(b) a kabuliyat
or other undertaking in writing, not being a counter-part of a lease, to
cultivate, occupy or pay or deliver rent for, immovable property;
(c) any instrument by which tolls of any
description are let;
(d) any writing on an application for a lease
intended to signify that the application is granted;
[11][(16-A) “marketable
security” means a security of such a description as to be capable of being
sold in any stock market in [12][
(17) “mortgage-deed” includes every
instrument whereby for the purpose of securing money advanced, or to be
advanced, by way of loan, or an existing or future debt, or the performance of
an engagement, one person transfers, or creates, to, or in favour of, another,
a right over or in respect of specified property;
(18) “paper”includes
vellum, parchment or any other material on which an instrument may be written;
(19) “policy
of insurance” includes–
(a) any instrument by which one person, in
consideration of a premium, engages to indemnify another against loss, damage
or liability arising from an unknown or contingent event;
(b) a life-policy, and any policy insuring any
person against accident or sickness, and any other personal insurance
[13][* * *;
(c) * * * * * *
* * * * *]
(20) “policy
of sea-insurance” or “sea-policy”–
(a) means any insurance made upon any ship or
vessel (whether for marine or inland navigation), or upon the machinery, tackle
or furniture of any ship or vessel, or upon any goods, merchandise or property
of any description whatever on board of any ship or vessel, or upon the freight
of, or any other interest which may be lawfully insured in, or relating to, any
ship or vessel; and
(b) includes any insurance of goods, merchandise
or property for any transit which includes not only sea risk within the meaning
of clause (a), but also any other risk incidental to the transit insured from
the commencement of the transit to the ultimate destination covered by the
insurance;
Where
any person, in consideration of any sum of money paid or to be paid for
additional freight or otherwise, agrees to take upon himself any risk attending
goods, merchandise or property of any description whatever while on board of
any ship or vessel, or engages to indemnify the owner of any such goods,
merchandise or property from any risk, loss or damage, such agreement or
engagement shall be deemed to be a contract for sea-insurance;
(21) “power-of-attorney”
includes any instrument(not chargeable with a fee under the law relating to
court-fees for the time being in force) empowering a specified person to act
for and in the name of the person executing it;
(22) “promissory
note” means a promissory note as defined by the Negotiable Instruments Act,
1881[14]; it also includes a note
promising the payment of any sum of money out of any particular fund which may
or may not be available, or upon any condition or contingency which may or may
not be performed or happen;
[15][(22-A) “Public
Office” includes a Government Office, a People’s Local Council, a Local
Authority, a Statutory Corporation or a similar body set up by the [16]Central or Provincial
Government, commercial or industrial concern whether singly owned or run
through partnership having more than twenty employees, a body registered under
the Companies Act, 1913, and a Co-operative Society;
(22-B) “Public
Officer” includes an Officer-in-charge of a Public Office];
(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; [17][* * *]
(24) “settlement”
means any non-testamentary disposition, in writing, of movable or immovable
property made–
(a) in consideration of marriage,
(b) for the purpose of distributing property of
the settler among his family or those for whom he desires to provide, or for
the purpose of providing for some person dependent on him, or
(c) for any religious or charitable purpose;
and includes an agreement in writing to make such a
disposition [18][and, where any such
disposition has not been made in writing, any instrument recording, whether by
way of declaration of trust or otherwise, the terms of any such disposition]; [19][and
(25) “soldier”
includes any person below the rank of non-commissioned officer who is enrolled
under the Indian Army Act, 1911 [20][or the Pakistan Army Act,
1952].]
CHAPTER II
STAMP-DUTIES
A-Of the
liability of instruments to duty
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 therefor respectively, that is to say–
(a) every instrument mentioned in that Schedule which, not having been
previously executed by any person, is executed in [21][
(b) every bill of exchange [22][payable otherwise than on
demand]
[23][* * *] or promissory note
drawn or made out of [24][
(c) every instrument (other than a bill of exchange [26][* * *] or promissory note)
mentioned in that Schedule, which, not having been previously executed by any
person, is executed out of [27][Pakistan] on or after that
day, relates to any property situate, or to any matter or thing done or to be
done, in [28][Pakistan] and is received
in [29][Pakistan]:
Provided
that no duty shall be chargeable in respect of–
(1) any
instrument executed by, or on behalf of, or in favour of, the [30][Government] in cases where,
but for this exemption, the [31][Government] would be liable
to pay the duty chargeable in respect of such instrument;
(2) any
instrument for the sale, transfer or other disposition, either absolutely or by
way of mortgage or otherwise, of any ship or vessel, or any part, interest,
share or property of or in any ship or vessel registered under the Merchant
Shipping Act, 1894 or under Act XIX of 1838[32], or the Registration of
Ships Act, 1841[33], as amended by subsequent
Acts.
4. Several instruments used in
single transaction of sale, mortgage or settlement.– [34][(1)
Where, in the case of any sale, mortgage or settlement, several instruments are
employed for completing the transaction, the principal instrument only shall be
chargeable with the duty prescribed in Schedule I, for the conveyance, mortgage
or settlement, and each of the other instruments shall be chargeable with a
duty of four rupees instead of the duty (if any) prescribed for it in that
Schedule].
(2) The parties may determine for themselves which of the instruments so employed shall, for the purposes of sub-section (1), be deemed to be the principal instrument:
Provided
that the duty chargeable on the instrument so determined shall be the highest
duty which would be chargeable in respect of any of the said instruments
employed.
5. Instruments relating to several distinct
matters.–
Any instrument comprising or relating to several distinct matters shall be
chargeable with the aggregate amount of the duties with which separate
instruments, each comprising or relating to one of such matters, would be
chargeable under this Act.
6. Instruments coming within
several descriptions in Schedule I.– Subject to the provisions of
the last preceding section, an instrument so framed as to come within two or
more of the descriptions in Schedule I, shall, where the duties chargeable
thereunder are different, be chargeable only with the highest of such duties:
[35][Provided that nothing
contained in this Act shall render chargeable with duty exceeding four rupees a
counterpart or duplicate of any instrument chargeable with duty and in respect
of which the proper duty has been paid].
7. Policies of sea-insurance.– (1) No contract for
sea-insurance (other than such insurance as is referred to in section 506 of
the Merchant Shipping Act, 1894) shall be valid unless the same is expressed in
a sea-policy.
(2) No sea-policy made for time shall be made for
any time exceeding twelve months.
(3) No sea-policy shall be valid unless it
specifies the particular risk or adventure, or the time, for which it is made,
the names of the subscribers or under-writers, and the amount or amounts
insured.
(4) Where any sea-insurance is made for or upon a
voyage and also for time, or to extend to or cover any time beyond thirty days
after the ship shall have arrived at her destination and been there moored at
anchor, the policy shall be charged with duty as a policy for or upon a voyage,
and also with duty as a policy for time.
8. Bonds, debentures or other
securities, issued on loans under Act XI, 1879.– (1)
Notwithstanding anything in this Act, any local authority raising a loan under
the provisions of the Local Authorities Loan Act, 1879[36], or of
any other law for the time being in force, by the issue of bonds, debentures or
other securities, shall, in respect of such loan, be chargeable with a duty of [37][one
per centum] on the total amount of the bonds, debentures or other securities
issued by it, and such bonds, debentures or other securities need not be
stamped, and shall not be chargeable with any further duty on renewal,
consolidation, sub-division or otherwise.
(2) The provisions of sub-section (1) exempting certain bonds, debentures or other securities from being stamped and from being chargeable with certain further duty shall apply to the bonds, debentures or other securities of all outstanding loans of the kind mentioned therein, and all such bonds, debentures or other securities shall be valid, whether the same are stamped or not:
Provided
that nothing herein contained shall exempt the local authority which has issued
such bonds, debentures or other securities from the duty chargeable in respect
thereof prior to the twenty-sixth day of March, 1897, when such duty has not
already been paid or remitted by order issued by the [38][Federal Government].
(3) In the case of wilful neglect to pay the duty
required by this section, the local authority shall be liable to forfeit to the
[39][Provincial] Government a
sum equal to ten per centum upon the amount of duty payable, and a like penalty
for every month after the first month during which the neglect continues.
9. Power to reduce, remit or
compound duties.– [40][The
Provincial Government] may, by rule or order published in the [41][Official
Gazette]–
(a) reduce or remit, whether prospectively or retrospectively, in the
whole or any part of [42][the territories under its
administration], the duties with which any instruments or any particular class
of instruments, or any of the instruments belonging to such class, or any
instruments when executed by or in favour of any particular class of persons,
or by or in favour of any members of such class, are chargeable, and
(b) provide for the composition or consolidation of duties in the case of issues by any incorporated company or other body corporate of debentures, bonds or other marketable securities.
[43][9-A. Power of Provincial
Government to exempt certain instruments.– The Provincial Government may by [44][notification in] the
official Gazette, generally exempt from payment of the whole or any part of the
duties on any instrument executed by or in favour of a banking company in the
normal course of its banking business.
Explanation– For
the purpose of this Section, “Banking Company” shall have the same meaning as
in the Banking Tribunals Ordinance, 1984[45]].
B-Of stamps and the mode of using them
10. Duties how to be paid.– (1) Except as otherwise
expressly provided in this Act, all duties with which any instruments are
chargeable shall be paid, and such payment shall be indicated on such
instruments, by means of stamps–
(a) according to the provisions herein contained,
or
(b) when no such provision is applicable thereto,
as the [46][Provincial Government] may
by rules direct.
(2) The rules[47] made under sub-section (1)
may, among other matters, regulate,–
(a) in the case of each kind of instrument–the
description of stamps which may be used;
(b) in the case of instruments stamped with
impressed stamps–the number of stamps which may be used;
(c) in the case of bills of exchange or promissory
notes written in any Oriental language–the size of the paper on which they are
written.
11. Use of adhesive stamps.– The following instruments
may be stamped with adhesive stamps, namely:-
(a) instruments chargeable with [48][a duty not exceeding
twenty-five paisa], except parts of bills of exchange payable otherwise than on
demand and drawn in sets;