Stamp Duty

Stamp Act 1899 is a fiscal statute. The primary object is to raise the revenue for the state, to avoid the possibilities of evasion section 4, 5 and 6 has been introduced by stamp Act 1899. Section 3 of stamp act 1899 has made the instruments chargeable with stamp duty. Instrument would be dually stamped when it is written. 

Art 4 stamp duty is Rs 20/- fixed for some transactions which are written on instruments. A stamp duty payable according to the value of the property subject of transaction at the rate prescribed in art 23. It deals with a single transaction completed in several instruments . It deals when a single instrument comprises more than one transaction. It deals with a single transaction which might be falling under more than one category. Where in case of sale, mortgage or settlement, several instruments are employed for completing the transaction. The stamp duty shall be paid as following.

a- The principle instrument shall be chargeable with duty prescribed in schedule I

b- All the other subsisting instruments shall be charged with rupee 4

 Parties may determine for themselves the principle instrument.

The duty on principle instrument must be highest duty.

Section 4 does not apply where subsequent documents contain new provisions.

 Where a single instrument is made for several distinct matters, the aggregate amount of duty shall be paid.

Distinct matters connote distinct transactions. Test is that the matter is capable of being carried out on a distinct instrument instead of one. Where an instrument comes between two within more than two descriptions, the highest of such duty shall be imposed.

 A the lesser leases his property to B the lessee for the period of 20 years against the payment of annual rent. The instrument also provided that the regular payment of rent shall entitled the lessee as owner. It is instrument chargeable u/s 6