The Act is to be known as “The Indian Stamp Act, 1899”. Act came into force on 1st day of July, 1899. It extends to whole India except state of Jammu and Kashmir, and also states or territories which are constituted on 1st November, 1899 in part B; this will not include Jammu and Kashmir.
As per provision of act certain instruments are chargeable with duty of amount such mentioned in schedule of act which says that, every instrument mentioned which are not executed before by any person then it shall be then executed on or before 1st day of July, 1899, every instruments like bill of exchange, promissory note drawn , paid or accepted in India, but certain instrument executed by or on behalf in favour of government, but government will be liable to pay the duty charged in related to such instrument, instrument for sale, transfer or disposition absolute or by way of mortgage of any ship or vessel registered in Merchant Shipping Act or other act dealing with ship and vessel. Instruments which cover more then one description or several description then duties chargeable for them will be different and are charged as highest of duties.
Some instruments are stamped with adhesive stamp, such instruments can be, instruments which are charged with certain duty that will not exceed more than ten naye paise beside on some part of bills of exchange payable other than on demand and drawn in sets, bills of exchange and promissory note drawn or made out of India, entry as an advocate, vakil or attorney on the roll of high court, notarial acts, transfers by endorsement of shares in any incorporated company or other body corporate. When any person is using adhesive stamp i.e., any person who sticks or attaches any of adhesive stamp on any instrument which are charged with some duty which is been executed, can cancel such stamp so that is not further used by anyone else. Any instrument which is stamped with adhesive stamp which has not been cancelled so that it cannot be used again, until so far such stamp is concerned should be considered to be stamped.
Instruments which are communicated on paper and are stamped with an impressed stamp has to be communicated in such manner that stamp may come on front appearance of instrument and thus is not used again to apply on any other stamp. When instrument is charged with duty or is exempted from duty is depended on any of such circumstances where upon such duty originally paid in relation of both instruments, denoted upon such first mentioned instrument by application is communicated in implied manner to collector for such purpose and has to show both instrument warranted under hand of collector or in that manner as rules lead by act. Instruments which are executed by any person are chargeable with duty and shall be stamped before or after execution.
Instruments executed only of India is always charged with some duty but which are not bill of exchange or promissory note which may be affixed with stamp within three months after it has been first received in India. Any instrument which is charged with ad valorem (according to value) duty in account of money which is exhibited in any form of currency other than which is used in India then such duty can be calculated or totalled on face value of such money in currency for India according to at present rate of exchange on that day when instrument is executed. Instrument which is charged with ad valorem (according to value) duty in relation of such reserve or of any marketable or other security such duty totalled on value of such stock or security according to medians price or sum as on executed day of instrument.
When any receipt which is chargeable more than ten naye paise is produced or brought in before any officer unstamped in course of audit of any account such officer may in his discretion instead of impounding instrument require a duly stamped receipt to be substituted therein. When any such instrument is taken as evidence, then such acknowledgement cannot be questioned at any point in suit or proceedings on ground that instrument w not duly stamped. When any person use adhesive stamp and then require to cancel such stamp as asked by rules lead in this act and if such person fail to do so then such person is punished with fine up to one hundred rupees.
by Samata. H. Joshi.