SECTION 9 OF THE
INDIAN STAMPS ACT, 1899 - POWER TO REDUCE, REMIT OR COMPOUND DUTIES CHANGES IN
RATE OF STAMP DUTY
ORDER NO. S.O. 2189(E), DATED 12-9-2008
In
exercise of the powers conferred by clause (a) of sub-section (1) of Section
9 of the Indian Stamp Act, 1899 (2 of 1899), the Central Government hereby
makes the following amendments in the Order of Government of India in the
Ministry of Finance (Department of Revenue) published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (ii) dated the 28th January,
2004, vide number S.O. 130(E), dated the 28th January, 2004, namely:—
2. In the said Order in the
table, —
(a) for article 27 and the entries relating
thereto the following shall be substituted, namely :—
"27.
Debenture (whether a mortgage debenture or not), being a marketable
security transferable—
(a) by
endorsement or by a separate instrument of transfer
(b) by
delivery 0.05% per year of the face value of the debenture, subject to the
maximum of 0.25% or rupees twenty five lakhs whichever is lower.
Explanation—The term
"Debenture" includes any interest coupons attached thereto but the
amount of such coupons shall not be included in estimating the duty.
Exemption
A
debenture issued by an incorporated company or other body corporate in terms of
a registered mortgage-deed, duly stamped in respect of the full amount of
debentures to be issued thereunder, whereby the company or body borrowing makes
over, in whole or in part, their property to trustees for the benefit of the
debenture holders :
Provided
that the debentures so issued are expressed to be issued in terms of the said
mortgage-deed."
(b) in
article 49 for clause (b) and the entries relating thereto, the following shall
be substituted, namely :—
“49. PROMISSORY
NOTE
[as
defined by Section 2(22)] —
|
(b) where payable otherwise than on demand. |
One-fifth of the duty as
applicable to Bill of Exchange (No. 13 of Schedule 1), for the same amount
payable otherwise on demand.” |
CAclubindia
Aisha
Published in Corporate Law