Object Of Stamp Act

Stamp duty is imposed by state on the documents subject to the transactions made by the persons of that state. It is to collect revenue and give legal recognition. Stamp duty is a duty payable on the document provided in 1^st schedule, so that the document may be recognized by law and may become admissible in evidence when required to prove or disprove any fact in issue.

It is a substantive law because it gives the principles as to the making of a document. IVth schedule of constitution Stamp Act relates to the duty which is mentioned in 4^th schedule of the constitution of Pakistan 1973.

Rates of stamp duty vary from province to province throughout the Pakistan. Object of Stamp Act is to prevent any escape from the liability of paying duty.

Stamp duty when it is paid creates piece of evidence in favor of the person enquiring legal rights. Stamp duty is legal recognition to the documents on who stamp duty paid. Payment of stamp duty helps the parties to avoid the exercise of fraud in their contracts.

Unstamped instruments shall not be registered by the registrar.The public officer shall not accept the document in any official proceeding without paying stamp duty.Unstamped instruments are not admissible in evidence. If stamp duty is not paid or improperly paid it may amount to an offence under Pakistan Penal Code 1860. In interpreting the Stamp Act 1899, the meaning shall be extracted in favor of its subjects.