THE BOMBAY STAMP ACT, 1958 - Igrmaharashtra.gov.in

Constitutional Position –Law relate to stamps and stamp duties regarding documents other than those specified in Entry 91of List I of Schedule VII of the Constitution, Specified documents are bills of exchangepromissory notes, bills of lading, letters of credit, policies of insurance, transfer of shares,debentures, proxies and receipts and the field related to rates of stamp duties. List II empowersstate to enact laws for rates of stamp duty in respect of documents other than specified in List I.Rates for stamp duties for specified documents in List I. Entry 91 can by prescribed byParliament and rates for stamp duties for other documents can be prescribed by State laws. Entry44List II empowers concurrently Parliament and State legislatures to make laws for stamp duties.Thus levy and charge of stamp duties can be imposed by both the Parliament and Statelegislatures subject to repugnancy and occupied field. Rates however have to be prescribedexclusively by Parliament for specified documents and by State legislatures in respect of otherdocuments.Thus the preamble indicates that the Act prescribes rates of stamp duty and levies stampduties on documents as set out in the Act. Section 74 of the Act specifically excludes thedocuments as mentioned.Scheme of the Act-Section 3 is a charging section and provides for charging stamp duties on instrument andto that extend it levies duties on instrument and not on the transaction. The taxing events is whenthe instrument is executed in the State for the first time without being previously executed.Document as defined in Evidence Act means any matter expressed or described upon substanceby means of letters, figures or marks or by more than one of those means intended to be used orwhich may be used for the purpose of recording that matter. Explanations to Section 62 of theEvidence makes each counterpart of a document to be primary evidence as mentioned and wheredocument is executed in several parts each part is primary evidence of the document. Section 4 ofthe Bombay stamp Act provides for specified documents executed in several parts and the dutieschargeable thereon. Here the distinction made is between principal instrument and otherinstruments Sub Section 4,5,6. Further duty is payable and has to be paid on the principalinstrument and it is only when such duties are paid that other instruments can be received in thestate having regard to Section7. Section 8 provides for special rates on certain documents asmentioned.Sub-section 10 prescribes the mode of paying duties on instruments by user of stamps onsuch instruments. Sub-section 10 to 14 are machinery sections providing as to how the stamp dutyis to be collected. Section 15 provides that when stamp duties are not paid as provided for thenthe instrument shall be deemed to be not duly stamped. Sub-section 17 to 19 prescribes the timewhen stamp duty can be said to be duly paid. Events prescribed are two-(1) When the instrumentis executed in the state; (2) When the instrument though executed outside is brought into theState.Sub-section 20 to 29 sets out as to how the instruments have be valued for the purposedof stamp duty. Sub-section 21 to 23, 25 prescribes how ad valorem stamp duties have to bevalued. Sub-section 24,26, 17 provides for the valuation is cases as mentioned therein.Section 28 prescribes that all matters must be mentioned in the instrument affectionchargeability to stamp duty.Section 29 provides for apportionment of duties regarding separate parts of instrumentamong different persons.Section 30 provides for persons liable to pay the stamp duties.Chapter III SCHEDULE 31 TO 32 C provides for adjudication.