Whether a promissory note,
which is not adequately stamped is admitted in evidence?
The Indian stamp act has spelt out what are the document which are
admitted as evidence though insufficiently
stamped.Section 35 the act deals with this situation.There are certain document if insufficiently stamped
which are not admitted in evidence and another category of insufficiently
stamped document which are admitted in evidence on payment of penalty. The
following documents if not sufficiently
stamped are not at all admitted in evidence, even on payment of penalty
1. Promissory note.
2. Bill of exchange.
Some
states have amended this minimum stipulation of 10 paise; in Andhra Pradesh it is 20 paise and in Tamilnadu
it is 25 paise. All other document through insufficiently stamped are admitted in evidence on payment
of penalty.
Who is to decide the proper stamp duty on any instrument incase of any doubts ?
Stamp
acts of various states and union Government
provide the stamp duty payable on documents. In case of any doubt the
concerned party may approach the collector or dist registrar and apply for the
deciding correct stamp duty payable on the instrument; on payment of certain
fees.
The collector or dist registrar may call for the
abstract of the instrument and
also evidence to prove that all the circumstance and fact are correctly set forth in the instrument the collector there of will decide the correct
stamp duty payable and on payment of duty
or any shortfall, shall certify to that effect. Such person need not pay
any penalty or fine. If the document does not attract any stamp duty he shall
certify accordingly.
Can
document be stamped after signed by
parties?
No,
cannot be.All the document need to be stamped and cancelled at the time of
execution. Execution means the process of affixing the signature on the
document. Adhesive stamps such as revenue stamps should also be cancelled by
the party's signature across the face of
the stamp evidencing that the stamp were
cancelled at the time of execution.
Document which are to be franked should not bear the date of execution and signature of the parties. The document are to be dated at the time of franking the and parties have to execute the document after they are
franked.
If an
instrument is under stamped by accident or
ignorance of the parties can it be rectified. If so what is the
procedure?
YES. There is provision to rectify the mistake.
Section 41 of Indian stamp act, section 40 of Karnataka stamp act provide for such
situation. The time limit is one year from the date of execution. But this relief is not applicable for promissory note, Bill of exchange;
instrument attracting stamp duty of
15 parties of less, mortgage of crop.
The concerned parties on his own may
produce the document, may bring it,
to the notice of the collector or dist registrar the fact that the
instrument in under stamped and agrees to pay the amount of the shortfall. If
the collector or dist registrar is
satisfied that the instrument is
under stamped by accident, mistake or urgent necessity he may permit the party
to pay the correct stamp duty and shall
certify to the that effect.
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