Section 47 Indian Stamp Act
Section 47 of the Indian Stamp Act 1899 is about Power of payer to stamp bills, and promissory notes received by him unstamped. It is under CHAPTER IV (Instruments Not Duly Stamped) of the Act.
Power of payer to stamp bills, and promissory notes received by him unstamped.
When any bill of exchange 1[or promissory note] chargeable 2[with a duty not exceeding ten nayepaise] is presented for payment unstamped, the person to whom it is so presented, may affix thereto the necessary adhesive stamp, and, upon cancelling the same in manner hereinbefore provided, may pay the sum payable upon such bill 3[or note], and may charge the duty against the person who ought to have paid the same, or deduct it from the sum payable as aforesaid, and such bill 3[or note], shall, so far as respects the duty, be deemed good and valid:
Provided that nothing herein contained shall relieve any person from any penalty or proceeding to which he may be liable in relation to such bill, 3[or note].
STATE AMENDMENTS
Himachal Pradesh.–
Insertion of section 47-A. —After section 47 of the principal Act, the following new section shall be added, namely:–
47-A. Instruments under-valued, how to be dealt with.–(1) If the Registering Officer, appointed under the Registration Act, 1908 (16 of 1908) while registering any instrument relating to the transfer of any property, has reason to believe that the market value of the property or the consideration, as the case may be, has not been truly set forth in the instrument, he may, after registering such instrument, refer the same to the Collector for determination of the market value or consideration, as the case may be, and the proper duty payable thereon.
(2) On receipt of reference under sub-section (1), the Collector shall, after giving the parties a reasonable opportunity of being heard and after holding an enquiry in such manner, as may be prescribed by rules, made under this Act, determine the market value or consideration and the duty, as aforesaid, and the deficient amount of duty, if any, shall be payable by the person liable to pay the duty.
(3) The Collector may, suo moto or on receipt of reference from the Inspector General of Registration or the Registrar of a District, in whose jurisdiction the property, or any portion thereof, which is the subject-matter of the instrument, is situated, appointed under the Registration Act, 1908 (16 of 1908) shall, within three years from the date of registration of any instrument, not already referred to him under sub-section (1), call for and examine the instrument for the purpose of satisfying himself as to the correctness of its market value or consideration, as the case may be, and the duty payable thereon and if, after such examination, he has reason to believe that the market value or consideration has not been truely set forth in the instrument, he may determine the market value or consideration and the duty, as aforesaid, in accordance with procedure provided for in sub-section (2), and the deficient amount of duty, if any, shall be payable by the person liable to pay the duty:
Provided that nothing in this sub-section shall apply to any instrument registered before the date of the commencement of the Indian Stamp (Himachal Pradesh Amendment) Act, 1988.
(4) Where for any reason the original document called for by the Collector under sub-section (3) is not produced or cannot be produced, the Collector may, after recording the reasons for its nonproduction, call for a certified copy of the entries of the document from the registering officer concerned and exercise the powers conferred on him under sub-section (3).
(5) Any person, aggrieved by an order of the Collector, under subsection (2) or sub-section (3), may, within thirty days from the date of the order, prefer an appeal before the District Judge and all such appeals shall be heard and disposed off in such manner as may be prescribed by rules made under this Act.
(6) For the purpose of this section “market value” of any property shall be estimated to be the price which, in the opinion of the Collector or the appellate authority, as the case may be, such property would have fetched, if sold in the open market on the date of execution of the instrument relating to the transfer of such property.
[Vide Himachal Pradesh Act 7 of 1989, s. 3]
STATE AMENDMENT
Orissa.–
Amendment of section 47-A, (Act 2 of 1899). In section 47-A of the Indian Stamp Act, 1899 (Act 2 of 1899)-
(a) after sub-section (2), the following new sub-section shall be inserted, namely:–
“(2-a) The Collector may sou motu, within two years from the date of registration of any instrument not already referred to him under sub-section (1), call for purpose of satisfying himself as to the correctness of its value or consideration, as the case may be, and the duty payable thereon and if after such examination, he has reasons to believe that the value or consideration has not been truly set forth in the instrument, he may determine the value or consideration and the duty as aforesaid in accordance with the procedure provided for in sub-section (2); and the deficient amount of duty, if any, shall be payable by the person liable to pay the duty.”;
(b) in sub-section (3), after the word, brackets and figure “sub-section (2)” the words, brackets, figure and letter “or sub-section (2-a)” shall be inserted.
[Vide Orissa Act 11 of 1965, s. 2]
Orissa.–
Amendment of section 47-A.–In section 47-A of the principal Act, in sub-section (2-a), for the words “two years”, the words “three years” shall be substituted.
[Vide Orissa Act 1 of 2003, s. 5]
Orissa.–
(a) Amendment of section 47-A.–for sub-section (1) the following sub-section shall be substituted, namely:–
(1) where the registering officer under the Registration Act, 1908, (16 of 1908) while registering any instrument of conveyance, exchange, gift, partition or settlement has reasons to believe that the market value of the property which is the subject matter of such instrument has not been rightly set forth in the instrument or is less than the minimum value determined in accordance with the rules made under this Act, he shall, before registering such instrument, refer the matter to the Collector, with an intimation in writing to the person concerned, for determination of the market value of such property and the proper duty payable thereon.; and
(b) in sub-section (2-a) for the words “truly set forth in the instrument” , the words “rightly set forth in the instrument or is less than the minimum value determined in accordance with the rules made under this Act” shall be substituted.
[Vide Orissa Act 8 of 2009, s. 2]
Orissa.–
Insertion of new section 47-A, Act 2 of 1899. —After section 47 of the Indian Stamp Act, 1899 (2 of 1899) (hereinafter referred to as the Principal Act), the following new section shall be inserted, namely:–
47-A. Instruments under-valued how to be dealt with — (1) If the registering officer appointed under the Indian Registration Act, 1908, while registering any instrument transferring any property, has reasons to believe that the value of the property or the consideration, as the case may be, has not been truly set forth in the instrument, he may, after registering such instrument, refer the same to the Collector for determination of the value or consideration, as the case may be, and the proper duty payable thereon.
(2) On receipt of a reference under sub-section (1) the Collector shall, after giving the parties a reasonable opportunity of being heard and after holding an enquiry in such manner as may be prescribed by rules made under this Act, determine the value or consideration and the duty as aforesaid and the deficient amount of duty, if any, shall be payable by the person liable to pay the duty.
(3) Any person aggrieved by an order of the Collector under sub-section (2) may, within thirty days from the date of the order, prefer an appeal before the District judge and all such appeals shall be heard and disposed of in such manner as may be prescribed by rules made under this Act.
[Vide Orissa Act 35 of 1962, s. 2]
Orissa.–
Amendment of Section 47-A.– In section 47-A of the Principal Act, for sub-sections (1), (2) and (2-a), the following sub-sections shall be substituted, namely:–
“(1) Where the registering officer under the Registration Act, 1908 (16 of 1908), while registering any instrument of conveyance, exchange, gift, partition or settlement has reason to believe that the market value of the property which is the subject matter of such instrument has not been truly set forth in the instrument, he may, after registering such instrument, refer the matter to the Collector for determination of the market value of such property and the proper duty payable thereon.
(2) On receipt of a reference under sub-section (1), the Collector shall, after giving the parties an opportunity of making their representations and after holding an enquiry in such manner as may be prescribed by rules made under this Act, determine the market value of the property which is the subject matter of such instrument, and the duty as aforesaid and the deficient amount, if any, shall be payable by the person liable to pay the duty.
(2-a) The Collector may suo motu within two years from the date of registration of such instrument, not already referred to him under sub-section (1), call for and examine the instrument for the purpose of satisfying himself as to the correctness of the market value of the property which is the subject matter of such instrument and the duty payable thereon and if after such examination, he has reason to believe that the market value of such property has not been truly set forth in the instrument, he may determine the market value of such property and the duty as aforesaid in accordance with the procedure provided for in sub-section (2) and the deficient amount of duty , if any, shall be payable by the person liable to pay the duty”.
[Vide Orissa Act 7 of 1987, s. 6]
Tripura.–
In the Indian Stamp Act, 1899 as in force in the State of Tripura, after section 47, the following new section shall be inserted namely: —
“47A” Instruments of conveyance etc. undervalued, how to be, dealt with :– (1) If the Registering Officer appointed under the Indian Registration Act, 1908 (Central Act XVI of 1908), while registering any instrument of conveyance, exchange, gift or partition, has reason to believe that the value of the property which is the subject matter of the instrument, as has been set forth therein is lower than the market value thereof and proper duty has not been paid he may, after registering such instrument, refer the same to the Collector for determination of the market value of such property and the proper duty payable thereon.
(2) On receipt of a reference under Sub-Section (1), the Collector shall, after giving the parties a reasonable opportunity of being heard and after holding an enquiry in such manner as may be prescribed by rules made under this Act, determine the market value of such property and the proper duty payable thereon and then return the instrument to the Registering Officer after making and endorsement over his signature thereon indicating the market value of the property so determined and deficient amount of duty, if any, that shall be payable by the person liable to pay the duty.
(3) The Collector may, within a period of two year from the date of registration of any instrument of conveyance, exchange, gift or partition, not already sent to him under sub-section (I), call for as examine the instrument for the purpose of satisfying himself as to the correctness of the market value of the property which is the subject matter of such instrument and the duty paid thereon and if after such examination, he has reasons to believe that the market value of such property has not been truly set forth in the instrument and the proper duty has not been truly set forth in the instrument and the proper duty has not been paid, he may determine the market value thereof and the proper duty payable thereon in accordance with the provision of sub-section (2). The difference, if any between the duty determined by the Collector and the duty already paid shall be payable by the person liable to pay the duty on the instrument:
Provided that nothing in this sub-section shall apply to any instrument registered before the date of the commencement of the Indian Stamp (Tripura Third Amendment) Act, 1984.
(4) Any person aggrieved by an order of the Collector under sub-section (2) or sub-section (3) may appeal to the appellate authority specified in sub-section (5), All such appeals shall be preferred within such time, and shall be heard and disposed of in such manner, as may be prescribed by rules made under this Act.
(5) The State Government shall, by a Notification in the Official Gazette, appoint a person not below the rank of a Secretary of any Department to be the appellate authority referred to in sub-section (4).
(6) The amount of deficient duty, if any, shall be paid by deposit into Government Treasury by the person, liable to pay the duty, within a period of thirty days from the date of Notice in this behalf from the Registering Officer and in case of default in payment, such amount shall be recovered as arrears of land revenue.
Explanation:– For the purpose of the section the market value of any property shall be estimated to be the price which in the opinion of the Collector or the appellate authority, as the case may be, such property would have fetched, if sold in the open market on the date of execution of the instrument of conveyance, exchange gift or portion.
[Vide Tripura Act 2 of 1986, s. 2]
Meghalaya.–
Insertion of new Section 47A in Act 11 of 1899.–In the Indian Stamp Act,1899 after the existing Section 47, the following new Section as Section 47A, shall be inserted, namely:–
“47A. Instruments under-valued how to be dealt with.–(1) If registering officer appointed under the Indian Registration Act, 1908, while registering any instrument transferring any property, has reason to believe that the value of the property or the consideration, as the case may be has not been truly set forth in the instrument, he may, after registering such instrument, refer the same to the Deputy Commissioner, for determination of the value or consideration, as the case may be, and the proper duty payable thereon.
(2) On receipt of the reference under sub-section (1), the Deputy Commissioner shall, after giving the parties a reasonable opportunity of being heard and after holding an enquiry in such manner as may be prescribed by rules made under this Act, by order, determine the value of the property or the consideration and the duty aforesaid; and the deficient amount of duty, if any, shall be payable by the person liable to pay the duty and, on payment of such duty, the Deputy Commissioner shall endorse a certificate of such payment on the instrument under his seal and signature.
(3) The Deputy Commissioner may, suo motu, within six months from the date of registration of any instrument not already referred to him under sub-section (1), call for and examine the instrument for the purpose of satisfying himself as to the correctness of its value or consideration, as the case may be, and the duty payable thereon, and if after such examination, he has reason to believe that the value of consideration has not been truly set forth in the instrument, she may determine the value or consideration and the duty aforesaid in accordance with procedure provided for in sub-section (2); and the deficient amount of duty if any, shall be payable by the person liable to pay the duty and, on the payment of such duty the Deputy Commissioner shall endorse a certificate of such payment on the instrument under his seal and signature.
(4) Any person aggrieved by an order of the Deputy Commissioner under sub-section (2) or subsection (3) may appeal to the Meghalaya Board of Revenue.
(5) An appeal under sub-section (4) shall be filed within 90 (ninety) days of the date of the order sought to be appealed against.”
[Vide Meghalaya Act 8 of 1983, s. 2]
Uttarakhand.–
Amendment of section 47-A.–In section 47-A of the Principal Act, :–
(a) For sub-section (1), the following sub-sections shall be substituted, namely–
“(1) (a) If the market value of any property which is the subject of any instrument, on which duty is chargeable on the market value of the property as set forth in such instrument, is less than even the minimum value determined in accordance with the rules made under this Act, the registering officer appointed under the Registration Act, 1908 shall, notwithstanding anything contained in the 39 said Act, immediately after presentation of such instrument and before accepting it for registration and taking any action under section 52 of the said Act, require the person liable to pay stamp duty under section 29, to pay the deficit stamp duty as computed on the basis of the minimum value determined in accordance with the said rules and return the instruments for presenting again in accordance with section 23 of the Registration Act, 1908;
(b) When the deficit stamp duty required to be paid under clause (a), is paid in respect of any instrument and the instrument is presented again for registration, the registering officer shall certify by endorsement thereon, that the deficit stamp duty has been paid in respect thereof and the name and the residence of the person paying them and register the same;
(c) Notwithstanding anything contained in any other provisions of this Act, the deficit stamp duty may be paid under clause (a) in the form of impressed stamps containing such declaration as may be prescribed;
(d) If any person does not make the payment of the deficit stamp duty after receiving the order referred to in clause (a) and presents the instrument again for registration, the registering officer shall, before registering the instrument, refer the same to the Collector, for determination of the market value of the property and the proper duty payable thereon.
(b) in sub-section (3) of section 47-A the following explanation shall be inserted, namely:–
“Explanation–The payment of deficit stamp duty by any person under any order of registering officer under sub-section (1) shall not prevent the Collector from initiating proceedings on any instrument under sub section (3).”
(c) after sub-section (4), the following sub-section shall be inserted namely:–
“(4-A) The Collector shall also require along with the deficit stamp duty or penalty required to be paid under clause (ii) of sub-section (4), the payment of a simple interest at the rate of one and a half per cent per mensem on the amount of deficit stamp duty calculated from the date of the execution of the instrument till the date of actual payment;
Provided that the amount of interest under this sub-Section shall be recalculated if the amount of deficit stamp duty is varied on appeal or revision or by any order of a competent court or authority.
(4-B) The amount of interest payable under sub section (4-A) shall be added to the amount due and be also deemed for all purposes to be part of the amount required to be paid.
(4-C) Where realization of the deficit stamp duty remained stayed by any order of any court or authority and such order of stay is subsequently vacated, the interest referred to in sub-section (4-A) shall be payable also for any period during which such order of stay remained in operation.
(4-D) Any amount paid or deposited by or recovered from, or refundable to, a person under the provision of this Act, shall first be adjusted towards the deficit stamp duty or penalty outstanding against him and the excess if any, shall then be adjusted towards the interest, if any, due from him.”
[Vide Uttarakhand Act 1 of 2016, s. 8]
Uttar Pradesh
Amendment of section 47.In section 47-A of the principal Act, in sub-section (4), for the words, “Chief Inspector of Stamp, Uttar Pradesh or any officer of the Stamp Department of the Board of Revenue”, the words “Commissioner of Stamps or an Additional Commissioner of Stamps or a Deputy Commissioner of Stamps or an Assistant Commissioner of Stamps or any officer authorized by the Board of Revenue in that behalf” shall be substituted.
[Vide Uttar Pradesh Act 6 of 1980, s. 8]
Amendment of section 47-A.–In section 47-A of the principal Act–
(a) in sub-section (1) for the words, of conveyance, exchange, gift, settlement, award or trust” the words “on which duty is chargeable on the market value of the property” shall be substituted ;
(b) in sub-section (2) for the words “of conveyance, exchange, gift, settlement, award or trust” where they occur for the first time, the words “on which duty is chargeable on the market value of the property” and for the said words where they occur for the second time, the words “of such instrument” shall be substituted ;
(c) in sub-section (3), for the words “of conveyance, exchange, gift, settlement, award or trust,” the words “of the instrument” shall be substituted ;
(d) in sub-section (4) for the words, “of conveyance, exchange, gift, settlement, award or trust,” where they occur for the first time, the words “on which duty is chargeable on the market value of the property” and for the said words, where they occur for the second time, the words “of such instrument” shall be substituted.
[Vide Uttar Pradesh Act 11 of 1992, s. 4]
Amendment of section 47-A.In section 47-A, in sub-section (4), for the words “two years”, the words “four- years” shall be substituted and be deemed always to have been substituted :
[Vide Uttar Pradesh Act 20 of 1974, s. 5]
Substitution of section 47-AFor section 47-A of the principal Act. the following section shall be substituted, namely :
“47-A (1) If the market value of any property which is the subject of any instrument, on which duty is chargeable on market value of such property, as set forth in such instrument, is less than even the minimum value determined in accordance with the rules made under this Act, the registering officer appointed under the Registration Act, 1908 shall, before registering the instrument, refer the same to the Collector for determination of the market value of such property and the proper duty payable thereon.
(2) On receipt of a reference under sub-section (1) the Collector shall, after giving the parties a reasonable opportunity of being heard and after holding an inquiry in such manner as many be prescribed by rules made under this Act, determine the market value of the property which is the subject of such instrument and the proper duty payable thereon.
(3) The Collector may, suo motu, or on a reference from any court or from the Commissioner of Stamps or an Additional Commissioner of Stamps or a Deputy Commissioner of Stamps or an Assistant Commissioner of Stamps or any officer authorized by the State Government in that behalf, within four years from the date of registration of any instrument on which duty is chargeable on the market value of the property not already referred to him under sub-section (1) call for and examine the instrument for the purpose of satisfying himself as to the correctness of the market value of the property which is the subject for of such instrument, and the duty payable thereon and if after such examination he has reason to believe that market value of such property has not been truly set forth in such instrument he may determine the market value of such property and the duty payable thereon :
Provided that, with the prior permission of the State Government, an action under this sub-section may be taken after a period of four years but before a period of eight years from the date of registration of the instrument on which duty is chargeable on the market value of the properly.
(4) If on enquiry under sub-section (2) and examination under sub-section (3) the Collector finds the market value of the property :
(i) truly set forth and the instrument duly Stamped, he shall certify by endorsement that it is duly stamped and return it to the person who made the reference ;
(ii) not truly set forth and the instrument not duly stamped he shall require the payment of proper duty or the amount required to make up the deficiency in the same together with a penalty of an amount not exceeding four time the amount of the proper duty or the deficient portion thereof.
(5) The instrument produced before the Collector under sub-section (2) or under sub-section (3) shall be deemed to have come before him in the performance of his functions.
(6) In case the instrument is not produced within the period specified by the Collector, he may require payment of deficit stamp duty, if any, together with penalty on the copy of the instrument in accordance with the procedure laid down in sub-sections (2) and (4).
[Vide Uttar Pradesh Act 22 of 1998, s. 6]
Amendment of section 47-A. in section 47-A of the principal Act,
(a) for sub-section (1), the following sub-section shall be substituted, namely:
“(1) (a) If the market value of any property which is the subject of any instrument, on which duty is chargeable on the market value of the property as set forth in such instrument, is less than even the minimum value determined in accordance with the rules made under this Act, the registering officer appointed under the Registration Act, 1908 shall, notwithstanding anything contained in the said Act, immediately after presentation of such instrument and before accepting it for registration and taking any action under section 52 of the said Act, require the person liable to pay stamp duty under section 29, to pay the deficit stamp duty as computed on the basis of the minimum value determined in accordance with the said rules and return the instrument for presenting again in accordance with section 23 of the Registration Act, 1908.
(b) When the deficit stamp duty required to be paid under clause (a), is paid in respect of any instrument and the instrument is presented again for registration, the registering officer shall certify by endorsement thereon, that the deficit stamp duty has been paid in respect thereof and the name and the residence of the person paying them and register the same.
(c) Notwithstanding anything contained in any other provisions of this Act, the deficit stamp duty may be paid under clause (a) in the form of impressed stamps containing such declaration as may be prescribed.
(d) If any person does not make the payment of deficit stamp duty after receiving the order referred to in clause (a) and presents the instrument again for registration, the registering officer shall, before registering the instrument, refer the same to the Collector, for determination of the market value of the property and the proper duty payable thereon.”
(b) in sub-section (3), the following explanation shall be inserted, namely :
Explanation : The payment of deficit stamp duty by any person under any order of registering officer under sub-section (1) shall not prevent the Collector from initiating proceedings on any instrument under sub-section (3).”
(c) after sub-section (4), the following sub-sections shall be inserted, namely :
(4-A) The Collector shall also require along with the deficit stamp duty or penalty required to be paid under clause (ii) of sub-section (4), the payment of a simple interest at the rate of one and half per cent per mensem on the amount of deficit stamp duty calculated from the date of the execution of the instrument till the date of actual payment :
Provided that the amount of interest under this sub-section shall be recalculated if the amount of deficit stamp duty is varied on appeal or revision or by any order of a competent court or authority.
(4-B) The amount of interest payable under sub-section (4-A) shall be added to the amount due and be also deemed for all purposes to be part of the amount required to be paid.
(4-C) Where realization of the deficit stamp duty remained stayed by any order of any court or authority and such order of stay is subsequently vacated, the interest referred to in sub-section (4-A) shall be payable also for any period during which such order of stay remained in operation.
(4-D) Any amount paid or deposited by, or recovered from, or refundable to, a person under the provision of this Act, shall first be adjusted towards the deficit stamp duty or penalty outstanding against him and the excess, if any, shall then be adjusted towards the interest, if any, due front him.”
[Vide Uttar Pradesh Act 38 of 2001, s. 7]
Amendment of section 47-A. In section 47-A of the principal, Act
(a) in sub-section (1) for the words. “is less than that determined in accordance with any rules made under this Act”, the words, “is less than even the minimum value determined in accordance with any rules made under this Act” shall be substituted ,
(b) in sub-section (4), for the words, “or on a reference from Chief Inspector of Stamps, Uttar Pradesh” the words, “or on a reference from any court or from the Chief Inspector of Stamps, Uttar Pradesh or any officer of the Stamp Department of the Board of Revenue.” shall be substituted.
[Vide Uttar Pradesh Act 49 of 1975, s. 6]
