Q. I solicit your expert advice on the levy of tax in the shape of a one-rupee revenue stamp. My queries are: Whether the stamp is requi...
Q. I solicit your expert advice on the levy of tax in the shape of a one-rupee revenue stamp. My queries are:
A. The answers to your queries are as under:
In view of the above, the cheque received would also be covered for the affixation of the stamp.
The definition of receipt would definitely cover the cases referred to by you.
The withdrawals from the bank account are not in the nature of receipt as defined herein above. However, the payment on maturity of the fixed deposit would definitely be covered.
In my opinion, such a receipt is not perfect.
The instrument which is not duly stamped is inadmissible as evidence.
Note: The revenue stamp shown in the picture above is Just 15 paise where as per the rule above one rupee stamp is required.
- Whether the stamp is required on receipt for Rs 500 also or it is only for amounts exceeding Rs 500 and up to which value?
- Whether the stamp is required for amounts received only in cash or also for receipts through a cheque etc.
- Some employers make payments of salary etc. to their employees through payment advice to a bank for crediting the same to their respective bank account. Some employers get signatures (against a revenue stamp) of listed employees against their respective names for the amounts transferred to their bank accounts. Is a stamp mandatory in such cases?
- Banks do not insist on a revenue stamp on cash receipts or withdrawal payments, but they do in case of payments (in cash or even on credit to a saving bank account) on redemption of a fixed-term deposit or bonds or Post Office saving instruments. Is it Ok in the latter case?
- Many a time signature is not done partly covering the stamp, but a stamp is fixed nearby and crossed simply. Is it Ok?
- Is using a one-rupee revenue stamp a statutory obligation? What is the implication if the stamp is not used in a receipt?
A. The answers to your queries are as under:
- In view of the amendment of Schedule I, to the Indian Stamp Act 1899, the one-rupee stamp is required to be affixed on any receipt, the amount or value of which exceeds Rs 5,000. This amendment has come w.e.f. 10.09.04. The stamp is required to be affixed in respect of receipt which has been defined as under in Section 2(23) of the aforesaid Act:“Receipt” includes any note, memorandum, or writing-
- whereby any money or any bill of exchange, cheque or promissory note is acknowledged to have been received, or
- whereby any other movable property is acknowledged to have been received in satisfaction of a debt, or
- whereby any debt or demand, or any part of a debt or demand, is acknowledged to have been satisfied or discharged, or
- which signifies or imports any such acknowledgment, and whether the same is or is not signed with the name of any person.
By CA S.C. Vasudeva[post_ads_2]
Revenue stamps are a form of tax that are affixed to certain documents as proof of payment. In India, the requirement to affix revenue stamps on certain documents is governed by the Indian Stamp Act of 1899. Recently, the Indian government has made an amendment to this act, according to which, revenue stamps are required only on receipts above Rs 5,000.
This change in the Indian Stamp Act is expected to reduce the compliance burden for businesses and individuals, as they will no longer be required to affix revenue stamps on small-value receipts. This will also help to save time and money for the taxpayers as they will not have to purchase stamps for small transactions.
Revenue stamps are required for various types of documents such as receipts, invoices, bills, agreements, and more. The stamp duty is a percentage of the value of the transaction and it varies depending on the type of document and the state in which it is executed. However, with this new amendment, businesses and individuals will only have to pay the stamp duty on receipts above Rs 5,000.
This change in the Indian Stamp Act is a welcome move by the government as it will help to promote ease of doing business and reduce the compliance burden for businesses and individuals. This will also help to improve the efficiency of the tax system and make it more transparent.
In summary, the Indian government has recently made an amendment to the Indian Stamp Act of 1899, which requires revenue stamps to be affixed only on receipts above Rs 5,000. This change is expected to reduce the compliance burden for businesses and individuals and improve the efficiency of the tax system. This move is a welcome step towards promoting ease of doing business and reducing the compliance burden for taxpayers.