Chapter 11 i

Subject to the provisions of this Act and the exemptions contained in the Schedule, the following instruments shall be chargeable with duty of the amount indicated in that Schedule as the proper duty therefor, respectively, that is to say-(a) every instrument mentioned in the Schedule which, not having been previously executed by any person, is executed in the territories of the State of Kerala on or after the commencement of this Act; and (b) every instrument mentioned in that Schedule which, not having been previously executed by any person, is executed out of the State of Kerala on or after that day, relates to any property situate, or to any matter or thing done or to be done, in the territories of the State of Kerala and is received in the territories of the State of Kerala: Provided that no duty shall be chargeable in respect of-(1) any instrument, executed by, or on behalf, of or in favour of, the Central Government or this or any other State Government, in cases where, but for this exemption, the Central Government or the State Government, would be liable to pay the duty chargeable in respect of such instrument; (2) any instrument for sale, transfer or other disposition either absolutely or by way of mortgage or otherwise of any ship or vessel or any part, interest, share or property of or in any ship or vessel.

(1) Where, in the case of any sale, mortgage or settlement, several instruments are employed for completing the transaction, the principal instrument only shall be chargeable with the duty prescribed in the Schedule for the conveyance, mortgage, or settlement, and each of the other instruments shall be chargeable with a duty of Rs. 2 instead of the duty, if any, prescribed for it in the Schedule. (2) The parties may determine for themselves which of the instruments so employed shall, for the purpose of sub section (1), be deemed to be the principal instrument: Provided that the duty chargeable on the instrument so determined shall be the highest duty which would be chargeable in respect of any of the said instruments employed.

Any instrument comprising or relating to several distinct matters shall be chargeable with the aggregate amount of the duties with which separate instruments, each comprising or relating to one of such matters, would be chargeable under this Act.

Subject to the provisions of the last preceding section, an instrument so framed as to come within two or more of the descriptions in the Schedule shall, where the duties chargeable thereunder are different, be chargeable only with the highest of such duties: Provided that nothing contained in this Act shall render chargeable with duty exceeding Rs. 2 a counterpart or duplicate of any instrument chargeable with duty and in respect of which the proper duty has been paid.

(1) Notwithstanding anything contained in sections 4 or 6 or in any other enactment, unless it is proved that the duty chargeable under this Act has been paid-(a) on the principal or original instrument, as the case may be, or (b) in accordance with the provisions of this section, the duty chargeable on an instrument of sale, mortgage or settlement, other than a principal instrument or on a counterpart, duplicate or copy of any instrument, shall, if the principal or original instrument would, when received in the State, have been chargeable under this Act with a higher rate of duty, be the duty with which the principal or original instrument would have been chargeable under section 19. (2) Notwithstanding anything contained in any enactment for the time being in force, no instrument, counterpart, duplicate or copy chargeable with duty under this section shall be received in evidence unless the duty chargeable under this section has been paid thereon: Provided that any Court before which any such instrument, duplicate or copy is produced may permit the duty chargeable under this section to be paid thereon and may then receive it in evidence.

(1) Except as otherwise expressly provided in this Act, all duties with which any instruments are chargeable shall be paid, and such payment shall be indicated on such instruments, by means of stamps-(a) according to the provisions herein contained; or (b) when no such provision is applicable thereto, as the Government may by rules direct. (2) The rules made under sub-section (1) may, among other matters, regulate,-(a) in the case of each kind of instrument-the description of stamps which may be used; (b) in the case of instruments stamped with impressed stamps-the number of stamps which may be used.

The following instruments may be stamped with adhesive stamps, namely:-(a) instruments chargeable with the duty of twelve naye paise and less; (b) entry as an advocate on the roll of the High Court; (c) notarial acts; (d) instruments as the Government may, by notification in the Gazette, specify.

(1) (a) Whoever affixes any adhesive stamp to any instrument chargeable with duty which has been executed by any person shall, when affixing such stamp, cancel the same so that it cannot be used again; and (b) Whoever executes any instrument on any paper bearing an adhesive stamp shall, at the time of execution unless such stamp has been already cancelled in manner aforesaid, cancel the same so that it cannot be used again. (2) Any instrument bearing an adhesive stamp which has not been cancelled so that it cannot be used again shall, so far as such stamp is concerned, be deemed to be unstamped. (3) The person required by sub-section (1) to cancel an adhesive stamp may cancel it by writing on or across the stamp his name or initials or the name or initials of his firm with the true date of his so writing or in any other effectual manner.

Every instrument written upon paper stamped with an impressed stamp shall be written in such manner that the stamp may appear on the face of the instrument and cannot be used for or applied to any other instrument.

No second instrument chargeable with duty shall be written upon a piece of stamped paper upon which an instrument chargeable with duty has already been written: Provided that nothing in this section shall prevent any endorsement which is duly stamped or is not chargeable with duty being made upon any instrument for the purpose of transferring any right created or evidenced thereby, or of acknowledging the receipt of any money or goods the payment or delivery of which is secured thereby.

Every instrument written in contravention of section 13 or section 14 shall be deemed to be unstamped Instrument of (including any instrument by which any instrument previously executed is cancelled) if attested and not otherwise provided for: Fifteen rupees

Where the duty with which an instrument is chargeable, or its exemption from duty depends in any manner upon the duty actually paid in respect of another instrument, the payment of such last mentioned duty shall, if application is made in writing to the Collector or the Registering Officer for that purpose, and on production of both the instruments, be denoted upon such first mentioned instrument, by endorsement under the hand of the Collector or the Registering Officer or in such other manner as the Government may by rules prescribe. (in respect of each property put up as a separate lot and sold) granted to the purchaser of any property sold by public auction by a Civil or Revenue Court or by the Government, Collector or other Revenue Officer- (a) Where the purchase money does not exceed Rs. 10: Thirty-five naye paise. (b) Where the purchase money exceed Rs. 10 but does not exceed Rs. 25: Seventy naye paise. (c) In any other case: The same duty as a conveyance (No. 21) for a consideration equal to the amount of the purchase money only.

All instruments chargeable with duty and executed by any person in the State of Kerala shall be stamped before or at the time execution. evidencing the right or the title of the holder thereof or any other person either to any share, scrip or stock in or of any incorporated company or other body corporate or to become proprietor of share, scrip or stock in or of any such company or body: Twenty naye paise.

(1) Every instrument chargeable with duty executed only out of India may be stamped within three months after it has been first received in the State of Kerala. (2) Where any such instrument cannot, with reference to the description of stamp prescribed therefor, be duly stamped by a private person, it may be taken within the said period of three months to the Collector who shall stamp the same, in such manner as the Government may by rules prescribe, with a stamp of such value as the person so taking such instrument may require and pay for. that is to say, any instrument except an agreement for the hire of a tugsteamer whereby a vessel or some specified principal part thereof is let for the specified purpose of the charterer whether it includes a penalty clause or not: Two rupees fifty naye paise.

Where an instrument is chargeable with ad valorem duty in respect of any stock or of any marketable or other security, such duty shall be calculated on the value of such stock or security according to the average price or the value thereof on the day of date of the instrument. (as defined by Section 2 (d) not being a transfer charged or exempted under No. 54) Where the amount or value of the consideration for such conveyance as set forth therein does not exceed Rs. 50: One rupee Twenty five naye paise. Where it exceeds Rs. 50 but does not exceed Rs. 100: Two rupees fifty naye paise. Where it exceeds Rs. 100 but does not exceed Rs. 200: Five rupees. Where it exceeds Rs. 200 but does not exceed Rs. 300: Seven rupees fifty naye paise. Where it exceeds Rs. 300 but does not exceed Rs. 400: Ten rupees. Where it exceeds Rs. 400 but does not exceed Rs. 500: Twelve rupees fifty naye paise. Where it exceeds Rs. 500 but does not exceed Rs. 600: Fifteen rupees. Where it exceeds Rs. 600 but does not exceed Rs. 700: Seventeen rupees fifty naye paise. Where it exceeds Rs. 700 but does not exceed Rs. 800: Twenty rupees. Where it exceeds Rs. 800 but does not exceed Rs. 900: Twenty two rupees fifty naye paise. Where it exceeds Rs. 900 but does not exceed Rs. 1000: Twenty five rupees. And for every Rs. 500 or part thereof in excess of Rs. 1,000: Twelve rupees fifty naye paise.

(1) Where an instrument-(a) is given upon the occasion of the deposit of any marketable security by way of security for money advanced or to be advanced by way of loan, or for an existing or future debt; or (b) makes redeemable or qualifies a duly stamped transfer, intended as a security, of any marketable security, it shall be chargeable with duty as if it were an agreement or memorandum of an agreement chargeable with duty under Article 5 of the Schedule. (2) A release or discharge of any such instrument shall be chargeable with the like duty, (a) Where the amount does not exceed Rs. 1,000: The same duty as Bottomry Bond (No. 14) for such amount. (b) In any other case: Fifteen rupees.

Where any property is transferred to any person in consideration, wholly or in part, of any debt due to him or subject either certainly or contingently to the payment or transfer of any money or stock, whether being or constituting a charge or incumbrance upon the property or not such debt, money, or stock is to be deemed the whole or part, as the case may be, of the consideration in respect whereof the transfer is chargeable with ad valorem duty: Provided that nothing in this section shall apply to any such certificate of sale as in mentioned in Article 16 of the Schedule. Explanation.-In the case of a sale of property subject to a mortgage or other incumbrance any unpaid mortgage money or money charged, together with the interest, if any, due on the same, shall be deemed to be part of the consideration for the sale: Provided that, where property subject to a mortgage is transferred to the mortgagee, he shall be entitled to deduct from the duty payable on the transfer the amount of any duty already paid in respect of the mortgage. Illustrations. (1) A. owes B Rs. 1,000. A sells a property to B the consideration being Rs. 500 and the release of the previous debt of Rs. 1,000. Stamp duty is payable on Rs. 1,500. (2) A sells a property to B for Rs. 500 which is subject to a mortgage to C for Rs. 1,000 and unpaid interest Rs. 200. Stamp duty is payable on Rs. 1,700. (3) A mortgages a house of the value of Rs. 10,000 to B for Rs. 5,000. B afterwards buys the house from A Stamp duty is payable on Rs. 10,000 less the amount of stamp-duty already paid for the mortgage. in respect of goods, that is to say, any instrument entitling any person therein named or his assigns or the holder thereof to the delivery of any goods lying in any dock or port or in any warehouse in which goods are stored or deposited on rent or hire or upon any wharf, such instrument being signed by or on behalf of the owner of such goods, upon the sale or transfer of the property therein where such goods exceed in value twenty rupees: Fifteen naye paise.

Where an instrument is executed to secure the payment of annuity or other sum payable periodically, or where the consideration for a conveyance is an annuity or other sum payable periodically, the amount secured by such instrument or the consideration for such conveyance, as the case may be, shall, for the purposes of this Act be deemed to be,-(a) Where the sum is payable for a definite period so that the total amount to be paid can be previously ascertained:-such total amount. (b) Where the sum is payable in perpetuity or for an indefinite time not terminable with any life in being at the date of such instrument or conveyance-the total amount which according to the terms of such instrument or conveyance will or may be payable during the period of twenty years calculated from the date on which the first payment becomes due; and (c) Where the sum is payable for an indefinite time terminable with any life in being at the date of such instrument or conveyance-the maximum amount which will or may be payable as aforesaid during the period of twelve years calculated from the date on which the first payment becomes due. Instrument of, that is to say, any instrument by which any person effects the dissolution of his marriage: Ten rupees.

Where the amount or value of the subject matter of any instrument chargeable with advalorem duty cannot be or could not have been, ascertained at the date of its execution, or first execution, nothing shall be claimable under such instrument more than the highest amount or value for which, if stated in an instrument of the same description, the stamp actually used would, at the date of such execution have been sufficient: Provided that, in the case of the lease of mine in which royalty or a share of the produce is received as the rent or the part of the rent it shall be sufficient to have estimated such royalty or the value of such share, for the purpose of stamp duty- (a) When the lease has been granted by or on behalf of the Government, at such amount or value as the Collector may having regard to all the circumstances of the case, have estimated as likely to be payable by way of royalty or share to the Government under the lease, or (b) when the lease has been granted by any other person, at Rs. 20,000 a year; and the whole amount of such royalty or share, whatever it may be, shall be claimable under such lease: Provided also that, where proceedings have been taken in respect of any instrument under section 31 or 39 the amount certified by the Collector shall be deemed to be the stamp actually used at the date of execution. on the roll of the High Court- (a) In the case of an advocate: Five hundred rupees. (b) In the case of an attorney: Two hundred and fifty rupees. Exemptions: (a) Entry as an Advocate on the roll of the High Court, when he has been previously enrolled as a Vakil in the same High Court or as an Advocate or Vakil in any other High Court. (b) Entry as an Attorney on the roll of any High Court when he has been previously enrolled as an Advocate or Vakil in the same High Court or as an Advocate, Vakil or Attorney in any other High Court.

(1) Where any property has been contracted to be sold for one consideration for the whole, and is conveyed to the purchaser in separate parts by different instruments, the consideration shall be apportioned in such manner as the parties think fit, provided that a distinct consideration for each separate part is set forth in the conveyance relating thereto and such conveyance shall be chargeable with ad valorem duty in respect of such distinct consideration. (2) Where property contracted to be purchased for one consideration for the whole, by two or more persons jointly, or by any person for himself and others, or wholly for others, is conveyed in parts by separate instruments to the persons by or for whom the same was purchased for distinct parts of the consideration, the conveyance of each separate part shall be chargeable with ad valorem duty in respect of the distinct part of the consideration therein specified. (3) Where a person, having contracted for the purchase of any property but not having obtained a conveyance thereof contracts to sell the same to any other person and the property is in consequence conveyed immediately to the sub-purchaser, the conveyance shall be chargeable with ad valorem duty in respect of the consideration for the sale by the original purchaser to the sub-purchaser. (4) Where a person, having contracted for the purchase of any property but not having obtained a conveyance thereof, contracts to sell the whole or any part thereof to any other person or persons and the property is in consequence conveyed by the original seller, to different persons in parts, the conveyance of each part sold to a sub-purchaser shall be chargeable with ad valorem duty in respect only of the consideration paid by such sub-purchaser without regard to the amount or value of the original consideration; and the conveyance of the residue, if any, of such property to the original purchaser shall be chargeable with ad valorem duty in respect only of the excess of the original consideration over the aggregate of the considerations paid by the sub-purchasers: Provided that the duty on such last mentioned conveyance shall in no case be less than Rs. 2. (5) Where a sub-purchaser takes an actual conveyance of the interest of the person immediately selling to him, which is chargeable with ad valorem duty in respect of the consideration paid by him and is duly stamped accordingly, and conveyance to be afterwards made to him of the same property by the original seller shall be chargeable with a duty equal to that which would be chargeable on a conveyance for the consideration obtained by such original seller, or where such duty would exceed Rs. 10, with a duty of Rs. 10. that is to say, any instrument imposing a further charge on mortgaged property- (a) When the original mortgage is one of the description referred to in clause (a) of article 36 (i.e., with Possession): The same duty as a conveyance (No. 21) for a consideration equal to the amount of the further charge secured by such instrument. (b) When such mortgage is one of the description referred to in clause (b) of article 36 (i.e., without possession)- (i) If at the time of execution of the instrument of further charge possession of property is given or agreed to be given under such instrument: The same duty as a conveyance (No. 21) for a consideration equal to the total amount of the charge (including the original mortgage and any further charge already made), less the duty already paid on such original mortgage and further charge. (ii) If possession is not so given: The same duty as a Bottomry Bond (No. 14) for the amount of the further charge secured by such instrument.

In the absence of an agreement to the contrary, the expense of providing the proper stamp shall be borne,- (a) in the case of any instrument described in any of the following Articles of the Schedule, namely:- No 2 (Administration Bond), No. 6 (Agreement relating to deposit of title deeds, pawn or pledge), No. 13 (Bond), No. 14 (Bottomry Bond), No. 24 (Customs Bond), No. 29 (Further Charge), No. 31 (Indemnity Bond), No. 36 (Mortgage deed), No. 47 (Release), No. 48 (Respondentia Bond), No. 49 (Security Bond or Mortgage deed), No. 50 (Settlement), No. 54 (Transfer of any interest secured by a bond or mortgage deed), by the person drawing, making or executing such instrument; (b) In the case of a conveyance (including a reconveyance of mortgaged property) by the grantee; in the case of a lease or agreement to lease by the lessee or intended lessee; (c) in the case of a counterpart of lease by the lessor; (d) in the case of an instrument of exchange by the parties in equal shares; (e) in the case of a certificate of sale by the purchaser of the property to which such certificate relates; and (f) in the case of an instruments of partition by the parties thereto in proportion to their respective shares in the whole property partitioned, or, when the partition is made in execution of an order passed by a Revenue authority or Civil Court or arbitrator, in such proportion as such authority, Court or arbitrator directs. not being a settlement or Will or transfer: The same duty as a conveyance (No. 21) for a consideration equal to the value of the property as set forth in the instrument.

(1) When any instrument, whether executed or not and whether previously stamped or not is brought to the Collector, and the person bringing it applies to have the opinion of that officer as to the duty, if any, with which it is chargeable, and pays a fee of such amount (not exceeding Rs. 10 and not less than Rs. 1) as the Collector may in each case direct, the Collector shall determine the duty, if any, with which, in his judgment, the instrument is chargeable. (2) For this purposes the Collector may require to be furnished with an abstract of the instrument, and also with such affidavit or other evidence as he may deem necessary to prove that all the facts and circumstances affecting the chargeability of the instrument with duty, or the amount of the duty with which it is chargeable, are fully and truly set forth therein, and may refuse to proceed upon any such application, until such abstract and evidence have been furnished accordingly: Provided that- (a) no evidence furnished in pursuance of this section shall be used against any person in any civil proceeding except in any enquiry as to the duty with which the instrument to which it relates is chargeable; and (b) every person by whom any such evidence is furnished shall, on payment of the full duty with which the instrument to which it relates, is chargeable, be relieved from any penalty which he may have incurred under this Act by reason of the omission to state truly in such instrument any of the facts or circumstances aforesaid. (a) no evidence furnished in pursuance of this section shall be used against any person in any civil proceeding except in any enquiry as to the duty with which the instrument to which it relates is chargeable; and (b) every person by whom any such evidence is furnished shall, on payment of the full duty with which the instrument to which it relates, is chargeable, be relieved from any penalty which he may have incurred under this Act by reason of the ommission to state truly in such instrument any of the facts or circumstances aforesaid. The same duty as a Security Bond (No. 49) for the same amount.