Section 3 Indian Stamp Act
Section 3 of the Indian Stamp Act 1899 is about Instruments chargeable with duty. It is under ‘A.—Of the liability of instruments to duty’ of CHAPTER II (Stamp Duties) of the Act.
Instruments chargeable with duty.
Subject to the provisions of this Act and the exemptions contained in Schedule I, the following instruments shall be chargeable with duty of the amount indicated in that Schedule as the proper duty therefore respectively, that is to say–
(a) every instrument mentioned in that Schedule which, not having been previously executed by any person, is executed in 1[India] on or after the first day of July, 1899;
(b) every bill of exchange 2[payable otherwise than on demand] 3*** or promissory note drawn or made out of 1[India ]on or after that day and accepted or paid, or presented for acceptance or payment, or endorsed, transferred or otherwise negotiated, in 1[India]; and
(c) every instrument (other than a bill of exchange, 3***or promissory note) mentioned in that Schedule, which, not having been previously executed by any person, is executed out of 1[India] on or after that day, relates to any property situate, or to any matter or thing done or to be done, in 1[India] and is received in 1India:
Provided that no duty shall be chargeable in respect of–
(1) any instrument executed by, or on behalf of, or in favour of, the Government in cases where, but for this exemption, the Government would be liable to pay the duty chargeable in respect of such instrument;
(2) any instrument for the sale, transfer or other disposition, either absolutely or by way of mortgage or otherwise, of any ship or vessel, or any part, interest, share or property of or in any ship or vessel registered under the Merchant Shipping Act 1894, Act No. 57 & 58 Vict. c. 60 or under Act XIX of 1838 Act No. or the Indian Registration of Ships Act, 1841, (CX of 1841) as amended by subsequent Acts.
STATE AMENDMENT
Himachal Pradesh.–
Amendment of section 3.– In section 3 of the said Act- (1) After clause (c), the following proviso shall be inserted, namely: — “Provided that, notwithstanding anything contained in clauses (a), (b) or (c) of this section or in Schedule I, and subject to the exemptions contained in Schedule I-A, the following instruments shall be chargeable with duty of the amount indicated in Schedule I-A, as the proper duty therefor, respectively, that is to say:
(aa) every instrument mentioned in Schedule I-A as chargeable with duty under that Schedule which, not having been previously executed by any person is executed in the Himachal Pradesh on or after the date of commencement of this Act;
(bb) every instrument mentioned in Schedule I-A as chargeable with duty under that Schedule, which, not having been previously executed by any person, is executed out of Himachal Pradesh, on or after the date of commencement of this Act and relates to any property situated, or to any matter or thing done or to be done in the Himachal Pradesh, and is received in the Himachal Pradesh”.
(2) Between the word Provided and the words that no duty the word also shall be inserted.
[Vide Himachal Pradesh Act 4 of 1953, s. 3]
Odisha.–
Insertion of new section 3A.–After section 3 of the Indian Stamp Act, 1899, (2 of 1899) the following section shall be inserted, namely:–
“3.A Duty chargeable on mining lease. — (1) Notwithstanding anything contained in this Act and the rules made thereunder, on every instrument of grant or renewal of a mining lease, the stamp duty chargeable shall be equivalent to fifteen percentum of the amount of average royalty that would accrue out of the highest annual extraction of minerals permitted under the approved mining plan or mining scheme, as the case may be, for such mining lease under the relevant law in force, multiplied by the period of such mining lease.
Explanation.–For the purpose of this sub-section, the average royalty of the highest grade of minerals based on the date available for past twelve months beginning from the date of commencement of the Indian Stamp (Odisha Amendment) Act, 2013 shall be taken into consideration:
Provided that where an application for renewal of mining lease has been made to the State Government prior to the expiry of the lease, but renewal of lease has not been granted by the State Government or the mining lease is deemed to have been extended by a further period in accordance with the provisions contained in the relevant law in force, till the State Government passes an order, prior to the commencement of the Indian Stamp (Odisha Amendment) Act, 2013, the sum total of the quantity of mineral permitted for extraction, year wise, in the approved mining plan or mining scheme, as the case, may be, or the actual quantity raised, whichever is higher, shall be taken into consideration for calculation of the stamp duty:
Provided further that in case the production level is enhanced on account of subsequent modification or review of the mining plan, the stamp lease period and the lessee shall deposit the differential stamp duty before such enhancement is carried out by him:
Provided also that in case a lessee is required to surrender the mining lease or, permanently prohibited from undertaking the extraction of mineral by, or for reasons of any operation of law, court orders passed or any order issued under any law for the time being in force and the reasons of such prohibition are not in any manner attributable to such lessee or his agents, servants, employees or persons claiming through or under such lessee, the lessee shall be entitled for refund of the stamp duty paid by him to the extent of such balance period of lease outstanding:
Provided also that where the lessee is prohibited from undertaking the extraction of minerals for a temporary period for the reasons mentioned in the third proviso and subject to the conditions specified therein, the stamp duty chargeable shall be equivalent to the amount of the sum total of the dead rent that would be payable for the mining lease under the relevant law in force, for the period of such prohibition.
(2) Where an application for renewal of a mining lease has been made to the State Government prior to the expiry of the lease but renewal of the lease has not been granted by the State Government or the mining lease is deemed to have been extended as per the provisions contained in the relevant law in force, by a further period till the State Government passes an order thereon, the stamp duty payable under sub-section (1) shall be paid by the applicant on or before the date of expiry of the lease or within sixty days from the date of commencement of the Indian Stamp (Odisha Amendment) Act, 2013, whichever is later, the manner as may be prescribed.
(3) If the application for grant or renewal of mining lease is rejected by the State Government, the applicant shall be entitled for refund of full stamp duty by him without any interest.
(4) In case of a mining lease whose period is deemed to have been extended by a further period till the State Government passes an order thereon and the State Government, at a later date, passes an order rejecting the renewal of the lease, the applicant shall be entitled for refund of such amount of stamp duty paid under sub-section (1), as arrived at by deducting from the total amount of stamp duty paid, the amount of stamp duty chargeable in respect of such mining lease till the date of such rejection order without any interest.
(5) No refund as mentioned in sub-sections (3) and (4) shall be made if the order rejecting the application is challenged or the time limit for presenting the application for revision of the order of rejection is not expired”.
[Vide Odisha Act 16 of 2013, s. 2]
Meghalaya.–
Insertion of a new section in Central Act II of 1899.–After section 3 of the Indian Stamp Act, 1899, the following shall be inserted as section 3A, namely:–
“3A. Surcharge on Stamp Duty.–(1) There shall be charged, levied and paid to the Government of Meghalaya, besides payable under any law for the time being in force including section 3 of this Act, a surcharge, herein after referred to as Stamp Surcharge on the instruments mention on the following items of Schedule I of the principal Act, namely:–
Item Nos. 1-10, 12,15-20, 22-26, 28, 29,31,38-46,48,50, 51, 54-61 and 63-65.
Provided that the surcharge shall not be payable in respect of instruments exempted by section 3.
(2) The rate of Stamp Surcharge shall be twenty, Five paisa per instrument.
(3) The Stamp Surcharge shall be payable as if it were a duty under section 3 and the provisions of this Act including the rules thereunder shall according apply; and the authorities for the time being empowered to collect and enforce payment of stamp duty shall, unless otherwise provided for by or under the Act, within their respective jurisdiction for purpose of stamp duty accordingly collect and enforce payment of stamp Surcharge.
Provide that the Government of Meghalaya may, for facilitating implementation, by notification, direct that in any case or class the provisions of this act including the rules thereunder shall apply subject to such indications not inconsistent with the provisions of this section and as may be specified in such notification.
(4) Notwithstanding anything contained in sub-section (3), the Government of Meghalaya may make rule generally for securing the payment of the Stamp Surcharge and carrying into effect the provisions the sub-sections (1) and (2) and in particular for ensuring the proper maintenance and rendering or accounts of the Stamp Surcharge.”
[Vide Meghalaya Act 13 of 1972, s. 2]
Meghalaya.–
Insertion of a new section in Central Act II of 1899.–After section 3 of the Indian Stamp Act, 1899 the following shall be inserted as section 3A, namely:–
“3A. Surcharge on Stamp Duty.–(1) There shall be charged, levied and paid to the Government of Meghalaya, besides payable under any law for the time being in force including section 3 of this Act, a surcharge, hereinafter referred to as Stamp Surcharge on the instruments mentioned in the following items of Schedule I to the principal Act, namely:–
Item Nos. 1-10, 12, 15-20, 22-26, 28, 29, 31, 36, 38-46, 48, 50, 51, 54-61 and 63-65.
Provided that the surcharge shall not be payable in respect of instruments exempted by section 3.
(2) The rate of Stamp Surcharge shall be twenty. Five paise per instrument.
(3) The Stamp Surcharge shall by payable as if it were a duty under section 3 and the provisions of this Act including the rules thereunder shall according apply; and the authorities for the time being empowered to collect and enforce payment of stamp duty shall, unless otherwise provided for by or under the Act, within their respective jurisdiction for purpose of stamp duty accordingly collect and enforce payment of Stamp Surcharge.
Provided that the Government of Meghalaya may, for facilitating implementation, by notification, direct that in any case or class the provisions of this Act including the rules thereunder shall apply subject to such indications not inconsistent with the provisions of this section and as may be specified in such notification.
(4) Notwithstanding anything contained in sub-section (3), the Government of Meghalaya may make rules generally for securing the payment of the Stamp Surcharge and carrying into effect the provisions the sub-sections (1) and (2) and in particular for ensuring the proper maintenance and rendering or accounts of the Stamp Surcharge.”
[Vide Meghalaya Act 15 of 1973, s. 2]
