29 May 2008
As per Indian Stamp Act , certain receipts should have to be affixed with stamp. Section 2(2 3) of the Indian Stamp Act 1899 makes it mandatory for affixing of stamp on any receipt as defined therein above Rs 5000 .[Previously it was Rs 500] 2(23) "Receipt" includes any note, memorandum or writing- (a) whereby any money, or any bill of exchange, cheque or promissory note is acknowledged to have been received, or (b) whereby any other movable property is acknowledged to have been received in satisfaction of a debt, or (c) whereby any debt or demand, or any part of a debt or demand, is acknowledged to have been satisfied or discharged, or (d) which signifies or imports any such acknowledgment; and whether the same is or is not signed with the name of any person " Therefore, affixing stamp does not depend on month or year , but every time a receipt is given. If every month receipt above Rs 5000 is given, stamp has to be affixed there. If only one receipt at the end of year is given , one stamp is required. The basic requirement under the law is RECEIPT. SOURCE:WWW.TAXWORRY.COM EFFECT OF NOT AFFIXING REVENUE STAMP IS :SINCE THE STAMP ACT IS NOT COMPLIED WITH THE LEGAL VALIDITY OF THE INSTRUMENT IS DENIED TILL FULFILLMENT OF THE REQUIREMENT AND IN ANY COURT OF LAW IT IS AN INVALID DOCUMENT.NO PENALTY IS QUANTIFIED FOR NON COMPLIANCE. R.V.RAO
CAclubindia
