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The Constitution of India has provided provisions for levying taxes.
Tax is levied in the form of stamps on instruments recording the
transactions. This form of taxation has been found to be convenient
for collection and supervision. The stamp Act is Fiscal statue dealing
with tax on transactions. Article 246 and the 7th schedule
are relevant in regard to the legislative power to levy stamp duties.
Article 265,268 and 269(e) are relevant mainly as regards the
distribution of revenue. The proceeds of stamp duty levyable in any
financial year shall we assigned to the state. Under Article 246 such
stamp duties as are mentioned in a list are levied by the Union, but
under Article 268 the state in which they are levied collects and
retains the proceeds. As the revenue from stamp duty is assigned to
the state in which they are collected each State Government has
prescribed by rule that stamps purchased in the state alone should be
used for instruments executed in it.
Tax is levied in the form of stamp in respect of
transactions in instruments like Bill of exchange, letter of credit,
Debenture, policy of insurance, Agreement or memorandum of Agreement,
lease cum sale, sale of property, deposit of deeds, conveyance etc as
defined in schedule 2 of Stamp Act. As provided in the Stamp Act all
duties with which any instruments are chargeable shall be paid and
such payment shall be indicated on such instrument by means of
impressed stamps or stamps issued by the Government An instrument to
be duly stamped should be stamped with a stamp not only of the amount
required by law but also in the manner prescribed by law.
The stamp duty payable on an instrument may also be paid in cash by
Challan in banking treasury or treasury countersigned by an officer
empowered by a State Government or by Demand draft or by pay order
drawn on branch of any scheduled bank.
The instruments may be stamped with Adhesive stamp. There shall be two
kinds of stamp for indicating the payment of duty.
1)
Impressed stamps
2)
Adhesive stamps
Impressed
stamps includes
a) Labels
affixed and impressed by the proper officer
b) Stamps
embossed or engraved on stamped paper
c)
Impressions by franking machines.
Special adhesive Stamps are labels.
All Stamps shall be purchased only from any of the State Treasuries /
Sub Treasuries / from a person / local bodies who has been granted a
licence under the Karnataka Stamps Rules, 1958. Franking or
impressing of stamps may be allowed upto to any amount.
The stamp as a history of more than 150 years. The concept of
registration of property is older and got special evidentiary value in
law. The stamps are generally categorized as Postal stamps and
Non-Postal stamps. Postal stamps are used for transaction with post
offices and related functions. The following types of stamps come
under Non-Postal stamp category.
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1 |
Judicial stamps
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2 |
Court fee stamps
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3 |
Coping sheets
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4 |
Non-Judicial stamp
papers
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5 |
Revenue stamps
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6 |
Special Adhesive
stamps (Labels)
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7 |
Notarial stamps
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8 |
Foreign Bill stamps
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9 |
Brokers Note
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10 |
Insurance policy
stamps
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11 |
Share Transfer
stamps
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12 |
Hundi
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13 |
Insurance Agency stamps
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Non judicial stamp papers of denominations up to Rs. 500/-
are printed at Security Printing Press Hyderabad. Non-judicial
stamps of denomination Rs 1000/- and above (up to Rs.25000/-) are
printed at India Security Press, Nasik. All types of Adhesive stamps,
Revenue stamps, Judicial stamps are printed at I.S.P Nasik.
Government of India has established security press at Nasik and
Hyderabad to cater the needs of various states of the country in
respect of security documents and stamps of different denominations.
Security press is also entrusted with the task of designing and
developing the security documents. The Security press is headed by an
officer of the rank of General Manager and functions under the
control of Finance Ministry, Government Of India.
The
features of each of the different stamps are enumerated bellow
1) Revenue
stamps:
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Revenue stamps are widely used by all section of the society
especially involving payment of money.
Denomination:
Re.0.25, 0.50, 1.00
Usage:
Receipt of payment of Money
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2) Court fee stamps
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Court fee stamps are generally used by public
and other departments for correspondence with Government
departments, such as RTO, Police, Revenue offices, etc.,
Denominations:
Re.0.05, 0.10, 0.20, 0.25, 0.35, 0.50, 0.55, 0.60, 0.65,
0.75,0.90, 1.00, Rs.1.10, 1.25, 1.50,2.00, 3.00, 4.00, 5.00,10.00,
20.00
Usage:
As processing fee for transactions with RTO, Police, Revenue &
other Government Department
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3)
Judicial stamps (Impressed Court Fee Stamp)
:
Judicial stamp are used for transactions with judiciary.
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Denominations
: Rs.25, 30, 40, 50, 60, 75, 100, 200, 300, 500, 1000, 3000, 5000
and 25000/-.
Usage:
Payment of Stamp duty in respect of Transactions with Civil and
Criminal Courts |
4) Non – Judicial Stamp:
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Non-judicial stamps are printed and circulated commencing from
1928 Non-Judicial Stamps are commonly used through out the
country to register the contracts, agreements, deeds, wills, etc. |
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Denomination:
Rs.1, 2, 5, 10, 20, 50, 100, 500, 1000, 5000, 10000, 15000,
20000, 25000
Usage:
Agreements, Sale Deed, Hypothecation, etc.,
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5) Fiscal stamps :
All Adhesive stamps (Labels) are known as Fiscal stamps. These stamps
are issued in the following three series.
(a)
Paise series- 5,10,20,25and 50
(b)
Rupees series – 1,2,5 and 10
(c)
High Rupee series – 20, 50, 100, 500, 1000, 5000 and 10,000
i) Special Adhesive Stamp
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Denomination:
Re.0.05, 0.10, 0.25, 0.40, Rs.5, 10, 20, 50, 500, 1000, 5000.
Usage:
Used in form of Non-Judicial Stamp in Financial transaction
covering Stamp Duty
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ii) Insurance Stamp
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Denomination
:
Re.0.10, 0.20, 0.25, 0.40, 0.50, 1, Rs.2, 5, 10,20, 50, 100, 500,
1000
Usage:
Used in Insurance Departments to authenticate the Insurance
Policies |
iii) Foreign
Bill Stamp
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Denomination
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Re.0.20, 0.25, 0.50, 1, Rs.3, 10, 20, 50, 100
Usage:
Stamp Duty in respect of import paid to India
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iv) Share Transfer Stamp
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Denomination
:
Re.0.15, 0.25, 0.50, 1, Rs.2, 5, 10, 50, 100, 200.
Usage
:
Used in transaction of Shares by financial institution
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v) Brokers Note
Stamp
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Denomination:
Re.0.25, 0.50, 0.75, 1, Rs.2,
5, 10, 50, 100, 500.
Usage:
Stamp Duty payment in respect of Transaction through Brokers |
vi)
Notarial Stamp
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Denomination:
Re.0.50, 1, Rs.2, 5.
Usage:
Used by Notary |
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Letters are printed in Black on overprinting of all these stamps.
If the watermark is genuine in a stamp paper, by placing a genuine
stamp paper on a tracing paper and rubbing with a crayon, one can
obtain the replica of the watermark on the tracing paper.
These Adhesive stamps (Fiscal stamps) are
generally used by the insurance companies, commercial Banks,
Financial institution, corporate offices, Business Houses,
Registered companies etc. all over the country and have common
acceptability. |
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EMBOSSING OF STAMP DUTY
:
This is one among the several forms of payment of stamp duty which
is done exclusively in the Office of the Deputy Director, Stamp
Depot, Vidhana Soudha, Bangalore. Any person desiring to get the
document of
 emboss will make an application indicating the amount
of stamp duty to be embossed. A challen is countersigned for the
required amount, which will be remitted to the Reserve Bank of
India and returned to the Treasury. The payment will be
reconciled or the payment scroll will be obtained from the Reserve
Bank next day. And the document is transmitted to the Government
Printing Press, Peenya, where the embossing machine is located.
The stamp duty will be embossed on the first sheet of the document
and return to the Deputy Director of Stamps, who will attest the
embossed impression and also affix a counter embossing seal. The
document will then is returned to the applicant.
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FRANKING
:
This is one of the several methods of indicating the payment
of stamp duty. Franking machines are installed in some
Sub-Registrar office in the State. These machines frank upto
a denomination of 999 rupees. An application indicating the
amount of duty to be frank is made to the proper officer
authorize under the rules along with the unexecuted typed or
printed documents. The necessary amount is paid in cash to
the proper officer and the required denomination is franked on
the document and return to the applicant.
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