57 & 58 Vict., c. 60. (Chapter II.-Stamp-duties. Sec. 3.) (24) "settlement" means any non-testamentary disposition, in writing, of "Settlement." moveable or immoveable property made (a) in consideration of marriage; (b) for the purpose of distributing property of the settlor among his 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. CHAPTER II. STAMP-DUTIES. A.-Of the Liability of Instruments to Duty. 3. Subject to the provisions of this Act and the exemptions contained in Instruments chargeable Schedule I, the following instruments shall be chargeable with duty of the with duty. 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 (b) every bill of exchange, cheque or promissory note drawn or made out (c) every instrument (other than a bill of exchange, cheque or pro- Provided that no duty shall be chargeable in respect of (1) any instrument executed by, or on behalf of, or in favour of, the (2) any instrument for the sale, transfer or other disposition, either Several instruments used in single (Chapter 11-Stamp-duties. Secs. 4-7.) under Act XIX of 1838,1 or the Indian Registration of Ships 4. (1) Where, in the case of any sale, mortgage or settlement, several in- Instruments relating to several dis (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 prin cipal 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. Any instrument comprising or relating to several distinct matters shall be chargeable with the aggregate amount of the duties with which separate tinct matters. instruments, each comprising or relating to one of such matters, would be chargeable under this Act. Instruments coming within several descriptions in Schedule I. Policies of sea-insurance. 6. 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: Provided that nothing in this Act contained shall render chargeable with duty exceeding one rupee a counterpart or duplicate of any instrument chargeable with duty and in respect of which the proper duty has been paid. 7. (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 underwriters, 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 1 Bombay Code, Vol. I. 2 General Acts, Vol. I. Vol. II of the Collection of Statutes relating to India, Ed. 1899. X of 1811. 57 & 58 Vict., c. 60. (Chapter II.-Stamp-duties. Secs. 8-9.) charged with duty as a policy for or upon a voyage, and also with duty as a 8. (1) Notwithstanding anything in this Act, any local authority rais XI of 1879. ing a loan under the provisions of the Local Authorities Loan Act, 1879, 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 eight annas 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 Governor General in Council. (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 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. The Governor General in Council may, by rule or order published in the Gazette of India, *(a) reduce or remit, whether prospectively or retrospectively, in the duties. 1 General Acts, Vol. III. 2 For the general notification reducing and remitting such duties, see Gazette of India, 1899, Pt. 1, p. 79. For notification remitting the duty on apprenticeship-deeds in the case of distributors or For notification reducing the duties chargeable on certain kabúliyats in the Bankura District, For notification remitting duty chargeable on any instrument of transfer of shares registered For notification remitting the duties on all agreements between creditors and debtors to refer their claims to arbitration made in the Central Provinces in the conciliation pro eedings approved by the Local Administration and on awards made on such agreements, see Gazette of India, 1900, Pt. I, p. 293. For notification remitting the duty on agreements or memoranda of agreement for the culti vation of the hemp plant made by cultivators in the Madras Presidency, see Notification No. 226-S. R., dated the 11th January, 1901 Gazette of India, 1901, Pt. I, p. 32. For notification remitting the duty on general or special authorities in writing, authorizing agents to appear and plead under section 23 (2) of the North-Western Provinces and Oudh Village Duties how to be paid. Use of adhesive stamps. (Chapter II.-Stamp-duties. Secs. 10-11) whole or any part of British India, 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. B.-Of stamps and the mode of using them. 10. (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 Governor General in Council may by rule direct. (2) The rules 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. The following instruments may be stamped with adhesive stamps, namely: (a) instruments chargeable with the duty of one anua, except parts of Courts Act, 1892 (III of 1892), see Notification No. 5650-S. R., dated 8th July, 1901-Gazette of For notification remitting the duty chargeable on certain mortgage-deeds executed for the purpose of giving effect to (1) s. 9 (2) of the Punjab Alienation of Land Act, 1900 (XIII of 1900), see Gazette of India, 1901, Pt. 1. p. 1001, and (2), the same section of the Bundelkhand Alienation of Land Act, 1903, United Provinces Act II of 1903, see ibid, 1903, Pt. I, p. 537. For notification remitting the duty chargeable on leases of fisheries granted by the Chief Commissioner of Assam, see Gazette of India, 1903, Pt. I, p. 98). For notification exempting Bills of Lading issued by Inland Steamer Companies from the stamp duty to which they are liable under Art. No. 14 of Sch. I of this Act, see Gazette of India, 1904, Pt. I, p. 38. For notification reducing the duty chargeable under clause (b) of Art. 41, Sch. I, see Gazette of India, 1903. Pt. 1, p. 39. 1 For rules as to the use of impressed adhesive stamps, see Notification No. 786 S. R., dated 17th February, 1899-Gazette of India, 1899, Pt. I, p. 82, amended by Notification No. 582-S. R. Gazette of India, 1901, Pt. I, p. 84, and by Notification No. 1662-S. R., dated 21st March, 1902, Gazette of India, 1902, Pt. I, p. 235. (Chapter II.-Stamp-duties. Secɛ. 12-16.) (6) bills of exchange, cheques and promissory notes drawn or made out (c) entry as an advocate, vakil or attorney on the roll of a High Court; (e) transfers by endorsement of shares in any incorporated company or of adhesive stamps. 12. (1) (a) Whoever affixes any adhesive stamp to any instrument charge- Cancellation (b) whoever executes any instrument on any paper bearing an adhesive (2) Any instrument bearing an adhesive stamp which has not been cancelled so that it cannot be used again, shall, so far as such stamp is concerned, be deemed to be unstamped. (3) The person required by sub-section (1) to cancel an adhesive stamp may cancel it. by writing on or across the stamp his name or initials or the name or initials of his firm with the true date of his so writing, or in any other effectual manner. 13. Every instrument written upon paper stamped with an impressed stamp shall be written in such manner that the stamp may appear on the face of the instrument and cannot be used for or applied to any other instrument. Instruments 14. No second instrument chargeable with duty shall be written upon a Only one piece of stamped paper upon which an instrument chargeable with duty has already been written : Provided that nothing in this section shall prevent any endorsement which is duly stamped or is not chargeable with duty being made upon any instrument for the purpose of transferring any right created or evidenced thereby, or of acknowledging the receipt of any money or goods the payment or delivery of which is secured thereby. instrument stamp. 15. Every instrument written in contravention of section 13 or section 14 Instrument shall be deemed to be unstamped. written con trary to section 13 or 14 deemed unstamped. 16. Where the duty with which an instrument is chargeable, or its exemp- Denoting tion from duty, depends in any manner upon the duty actually paid in As to the enrolment of legal practitioners in the North-West Frontier Province, see 8. 9 of the North-West Frontier Province Law and Justice Regulation, 1901 (VII of 1901), Funjab Code, Ed. 1903, duty. |