The Rajasthan Finance Act, 2024

This Act may be called the Rajasthan Finance Act, 2024.

In pursuance of section 3 of the Rajasthan Provisional Collection of Taxes Act, 1958 (Act No. 23 of 1958) it is hereby declared that it is expedient in the public interest that provisions of clauses 4, 6, 7, 10, 14, 15, 16, 17 and 18 of this Bill shall have immediate effect under the said Act.

In section 2 of the Rajasthan Stamp Act, 1998 (Act No. 14 of 1999), hereinafter in this Chapter referred to as the principal Act, for the existing clause (xxxvi), the following shall be substituted, namely:- "(xxxvi) "Stamp" means any mark, seal or endorsement made electronically or otherwise by any agency or person duly authorised by the State Government, and includes an adhesive or impressed stamp, for the purpose of duty chargeable under this Act;".

In section 3 of the principal Act, for the existing provision "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 the Schedule as the proper duty therefore respectively, that is to say,-

1. (a) every instrument mentioned in that Schedule, which, not having been previously executed by any person, is executed in the State on or after the date of commencment of this Act;
2. (b) every instrument mentioned in that Schedule, which, not having been previously executed by any person, is executed out of the State on or after the said date, relates to any matter or thing done or to be done in the State and is received in the State, or relates to any property situate in the State:", the following shall be substitued, namely:- "(1) 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 the Schedule as the proper duty therefore respectively, that is to say,-
3. (a) every instrument mentioned in that Schedule, which, not having been previously executed by any person, is executed in the State on or after the date of commencment of this Act;
4. (b) every instrument mentioned in that Schedule, which, not having been previously executed by any person, is executed out of the State on or after the said date, relates to any matter or thing done or to be done in the State and is received in the State, or related to any property situate in the State.

1. (2) Notwithstanding anything contained in this Act, in case the insured person resides in the State of Rajasthan or as the case may be, insured property is situated in the State of Rajasthan, the stamp duty payable on the instrument of insurance shall be chargeable in the State of Rajasthan:".

In section 30 of the principal Act, for the existing sub-section (2) the following shall be substituted, namely:- "(2) Without prejudice to the generality of sub-section (1), in the case of instruments relating to immovable property, the market value of which is required to be determined for the purpose of calculating the Stamp duty, the instrument shall fully and truly set forth all the particulars which may be prescribed by rules made under this Act.".

In sub-clause (ii) of clause (a) of the proviso to section 39 of the principal Act, the existing expression "or twenty five percent of the deficient stamp duty, whichever is higher," shall be deleted.

In sub-clause (ii) of clause (b) of sub-section (1) of the section 44 of the principal Act, the existing expression "or twenty five percent of the deficient stamp duty, whichever is higher," shall be deleted.

In sub-section (1) of section 52-B of the principal Act, the existing expression "either erroneous or" shall be deleted.

In clause (d) of section 58 of the principal Act, for the existing expression "the stamp used for an instrument executed by any party thereto", the expression "the stamp used for an instrument executed by any party or parties thereto" shall be substituted.

In the Schedule of the principal Act,-

1. (i) in Article 1,-

1. (a) for the existing expression "a debt exceeding twenty rupees", appearing under Column No. 1, the expression "a debt exceeding ten thousand rupees" shall be substituted;
2. (b) for the existing expression "Ten rupees", appearing under Column No. 2, the expression "Five hundred rupees" shall be substituted;
   • (ii) in Article 2, for the existing expression "Two percent of the value of the bond" appearing under Column No. 2, the expression "Five hundred rupees" shall be substituted;
   • (iii) in Article 5,-
3. (a) in clause (a), for the existing expression "Ten rupees" appearing under Column No. 2 the expression "Zero" shall be substituted;
4. (b) in clause (b), for the existing expression "Subject to a maximum of two hundred rupees, ten rupees for every Rs. 10,000/- or part thereof, of the value of the security or share." appearing under Column No. 2, the expression "Two hundred rupees." shall be substituted;
5. (c) in second proviso of clause (e), for the existing expression "clause (eee) of Article 44" appearing under Column No. 2, the expression "clause (f) of Article 44" shall be substituted;
6. (d) in sub-clause (i) of clause (ff), for the existing expression "Two rupees and fifty paise for every rupees 1,000 or part thereof on the amount agreed in the contract subject to minimum of rupees 100." appearing under Column No. 2, the expression "0.25% of the amount agreed in the contract subject to minimum of rupees 100." shall be substituted;
7. (e) in sub-clause (ii) of clause (ff), for the existing expression "Five rupees for every rupees 1,000 or part thereof on the amount agreed in the contract." appearing under Column No. 2, the expression "0.5% of the amount agreed in the contract." shall be substituted;
   • (iv) for the existing Article 8, the following shall be substituted, namely:-

" 8. Appraisement or valuation made otherwise than under an order of the court in the course of a suit. Three hundred rupees. ;"

1. (v) in Article 9, for the existing expression "Forty rupees", appearing under Column No. 2, the expression "Zero" shall be substituted;
2. (vi) for the existing Article 13, the following shall be substituted, namely:-

" 13. Award, that is to say, any decision in writing by an arbitrator or umpire not being an award directing a partition, on a reference made otherwise than by an order of the court in the course of a suit:

1. (a) If the property, which is the subject matter of award, is immovable property; The same duty as on a conveyance [No. 21(i)] on the market value of such property or consideration, whichever is higher.
2. (b) If the property, which is the subject matter of award, is movable property. 0.5% on the market value of such property or consideration, whichever is higher. ;"
   • (vii) in Article 15, for the existing expression "The same duty as on Bond (No. 14) for the same amount", appearing under Column No. 2, the expression "Zero" shall be substituted;
   • (viii) for the existing Article 16, the following shall be substituted, namely:-

" 16. Cancellation of Instruments-

1. (a) Cancellation of any instrument previously executed on which stamp duty has been paid as per any article of the Schedule and not otherwise specifically provided for by the Schedule-
   • (i) if executed within one month One thousand rupees.
   • (ii) if executed after one month Same duty as on the original instrument if such cancellation has the effect of re-conveyance of property already conveyed by the original instrument: Provided that, if the original instrument is a conveyance on sale, then the stamp duty payable on such cancellation instrument is, as per Article 21 (i), on the market value of the property as on the date of execution of such cancellation.
2. (b) Cancellation of any instrument executed by or on behalf of a Local Authority or other Authority constituted by or under any law for the time being in force or a body corporate wholly owned or controlled by the Central Government or the State Government; One hundred rupees.
3. (c) in any other case. Five hundred rupees. ;"
   • (ix) in Article 19, for the existing expression "Fifty rupees", appearing under Column No. 2, the expression "Zero" shall be substituted;
   • (x) in Article 21,-
4. (a) in clause (iii), the existing expression "or cancelled" appearing under Column No. 2 shall be deleted;
5. (b) for the existing clause (iv), the following shall be substituted, namely:-

" (iv) if relating to Transferable Development Rights (TDR)-

1. (a) when TDR certificate is issued in favour of land owner in lieu of the land surrendered by him; Five hundred rupees.
2. (b) when TDR certificate is transferred to another person. Two percent on the market value of the Transferable Development Rights equal to the market value of the corresponding portion of the property leading to such Transferable Development Rights, which is the subject matter of conveyance; or two percent on consideration for such conveyance; whichever is higher. ;"
3. (c) after clause (iv) so amended, the following new clauses shall be added, namely:-

" (v) Assignment of debt in respect of performing assets. 0.25 percent of the amount of debt.

1. (vi) Assignment of debt in respect of non-performing assets. 6 percent of the amount of debt. ;"
2. (xi) for the existing Article 22, the following shall be substituted, namely:-

" 22. Copy or extract certified to be a true copy or extract, by or by order of any public officer and not chargeable under the law for the time being in force relating to court fees. One hundred rupees. ;"

1. (xii) for the existing Article 23, the following shall be substituted, namely:-

" 23. Counterpart or duplicate of any instrument chargeable with duty and in respect of which the proper duty has been paid. One hundred rupees ;"

1. (xiii) in Article 26, for the existing expression "Ten rupees", appearing under Column No. 2, the expression "One hundred rupees" shall be substituted;
2. (xiv) in Article 27, for the existing expression "Fifty rupees." appearing under Column No. 2, the expression "Zero." it shall be substituted;
3. (xv) in Article 35-A,-

1. (a) for the existing clause (b), the following shall be substituted, namely:-

" (b) Licence relating to arms or ammunitions on following Forms as set out in Schedule III to the Arms Rules, 2016:-

1. (i) Form VIII Ten thousand rupees
2. (ii) Form VIII-A Five thousand rupees
3. (iii) Form IX Ten thousand rupees
4. (iv) Form IX-A Five thousand rupees
5. (v) Form XIV Fifteen thousand rupees ;"

1. (b) for the existing clause (d), the following shall be substituted, namely:-

" (d) Renewal of licence relating to arms or ammunitions on following Forms as set out in Schedule III to the Arms Rules, 2016:-

1. (i) Form VIII Three thousand rupees
2. (ii) Form VIII-A Two thousand rupees
3. (iii) Form IX Three thousand rupees
4. (iv) Form IX-A Two thousand rupees
5. (v) Form XIV Five thousand rupees ;"
6. (xvi) for the existing clause (c) of Article 37, the following shall be substituted, namely:-

" (c) When a collateral or auxiliary or additional or substituted security or by way of further assurance for the above mentioned purpose where the principal or primary security is duly stamped. The same duty as on a bond (No. 14) for the amount secured by such deed.

;"

1. (xvii) the existing Article 38 shall be deleted; (xviii) for the existing Article 41, the following shall be substituted, namely:-

" 41. Order of land use change or conversion - Order of land use change or conversion issued under the Rajasthan Urban Areas (Change of Land Use) Rules, 2010 or the Rajasthan Land Revenue (Conversion of agricultural land for non-agricultural purposes in rural areas) Rules, 2007 or under any other relevant rules. Five thousand rupees. ;"

1. (xix) for the existing Article 44, the following shall be substituted, namely:-

" 44. Power of Attorney- (as defined by section 2 (xxx), not being a proxy,-

1. (a) when executed for the sole purpose of procuring the registration of one or more documents in relation to a single transaction or for admitting execution of one or more such documents [as per section 33 of Registration Act, 1908 (Act No. 16 of 1908)]; Five hundred rupees for each document.
2. (b) when authorising the attorney to sell or transfer any immovable property and is made irrevocable generally or irrevocable for a certain period; The same duty as on conveyance (No. 21) for the amount of the consideration or market value of the property, whichever is higher.
3. (c) when creating any interest or right in immovable property by authorising the attorney to retain or use the consideration for the benefit of himself; The same duty as on conveyance (No. 21) for the amount of the consideration or market value of the property, whichever is higher.
4. (d) when given for consideration and authorising the attorney to transfer or sell any immovable property; The same duty as on conveyance (No. 21) for the amount of the consideration or market value of the property, whichever is higher.
5. (e) When power of attorney is given without consideration to transfer or sell immovable property to, (i) the father, mother, brother, sister, wife, husband, son, daughter, grandson or grand-daughter of the executant; Two thousand rupees.
   • (ii) any other person. Two percent of the market value of the property, which is the subject matter of power of attorney: Provided that the stamp duty paid on such power of attorney shall at the time of execution of a conveyance in pursuance of such power of attorney subsequently be adjusted towards the total amount of duty chargeable on the conveyance if such conveyance deed is executed within three years from the date of power of attorney.
6. (f) when given to promoter or developer by whatever name called, for construction on, or development of, or sale or transfer (in any manner whatsoever) of, any immovable property; The same duty as on conveyance (No. 21) on the market value of the property: Provided that the provisions of section 51 shall, mutatis mutandis, apply to such an instrument of power of attorney as they apply to a conveyance under that section : Provided further that when proper stamp duty is paid under clause (e) of Article 5 on an agreement or memorandum of an agreement executed between the same parties and in respect of the same property, the duty chargeable under this clause shall be rupees one hundred.
7. (g) when given in any other case. Five hundred rupees for each person authorised. N.B.- The term 'Registration' includes every operation incidental to registration under the Registration Act, 1908 (Act No. 16 of 1908). Explanation.- For the purpose of this Article more persons than one when belonging to the same firm, company or any other legal entity shall be deemed to be one person. ;"
   • (xx) in Article 45, for the existing expression "Ten rupees", appearing under Column No. 2, the expression "One hundred rupees" shall be substituted;
8. (xxi) in Article 46, for the existing expression "Ten rupees", appearing under Column No. 2, the expression "Zero" shall be substituted;
9. (xxii) for the existing Article 47, the following shall be substituted, namely:-

" 47. Re-conveyance of mortgaged Property. Five hundred rupees. ;"

(xxiii) for the existing Article 50, the following shall be substituted, namely:-

" 50. Security Bond or Mortgage-deed,-

1. (i) executed by way of security for the due execution of an office, or to account for money or other property, received by virtue thereof; or
2. (ii) executed by a surety to secure the due performance of a contract or the due discharge of a liability; or
3. (iii) executed by any person as a guarantor for the purpose of guaranteeing the repayment of loan or debt; or
4. (iv) executed by any company or corporate body as a guarantor for the purpose of guaranteeing the repayment of loan or debt. Subject to a minimum of rupees one thousand, half (0.5) percent of the amount secured.

Exemption: Bond or other instrument when executed, (a) by any person for the purpose of guaranteeing that the local income derived from private subscriptions to a charitable dispensary or hospital or any other object of public utility shall not be less than a specified sum per mensem;

1. (b) by agriculturists taking advances from the Government or by their sureties as security for the re-payment of such advances;
2. (c) by officers of Government or their sureties to secure the due execution of an office or the due accounting for money or other property received by virtue thereof. ;"
3. (xxiv) after Article 50 so amended and before the existing Article 51, the following new Article shall be inserted, namely:-

" 50-A. Security receipts issued under sub-sections (1) and (2) of section 7 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (Central Act No. 54 of 2002). 0.25 percent of the amount of Net Asset Value.

;"

1. (xxv) in sub-clause (i) of clause (b) of the Article 51, the existing expression "The same duty as on Bond (No. 14) for a sum equal to the amount settled or the market value of the property concerned as set forth in the instrument of revocation, but not exceeding fifty rupees." appearing under Column No. 2, the expression "Five hundred rupees." shall be substituted;
2. (xxvi) in Article 53, for the existing expression "Ten rupees.", appearing under Column No. 2, the expression "Zero." shall be substituted; (xxvii) in Article 54, for the existing expression "One hundred rupees.", appearing under Column No. 2, the expression "Five hundred rupees." shall be substituted; (xxviii) in sub-clause (b) of clause (A) of the Article 56, for the existing expression "The same duty as on bond (No. 14) for a sum equal to the amount or value of the property concerned but not exceeding sixty rupees." appearing under Column No. 2, the expression "Five hundred rupees." shall be substituted;
3. (xxix) in clause (B) of the Article 56, for the existing expression " The same duty as on bond (No. 14) for a sum equal to the amount or value of the property concerned but not exceeding fifty rupees." appearing under Column No. 2, the expression "Five hundred rupees." shall be substituted;
4. (xxx) in Article 57, for the existing expression "Ten rupees.", appearing under Column No. 2, the expression "Zero." shall be substituted.

After the existing Section 8A and before the existing section 9 of the Rajasthan Electricity (Duty) Act, 1962 (Act No. 12 of 1962), the following new section 8B shall be inserted, namely:- “8B. Rebate on electricity duty in certain cases.- Notwithstanding anything contained in this Act, where the State Government is of the opinion that it is expedient in the public interest so to do, it may, by notification in the Official Gazette, and subject to such conditions as may be specified therein, allow, whether prospectively or retrospectively, a rebate upto the full amount of electricity duty to such consumers as may be specified in the notification.”

For the existing clause (61) of section 2 of the Rajasthan Goods and Services Tax Act, 2017 (Act No. 9 of 2017), hereinafter referred to as the principal Act, the following shall be substituted, namely:–– ''(61) "Input Service Distributor" means an office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of distinct persons referred to in section 25, and liable to distribute the input tax credit in respect of such invoices in the manner provided in section 20;''.

For the existing section 20 of the principal Act, the following shall be substituted, namely:–– "20. Manner of distribution of credit by Input Service Distributor.- (1) Any office of the supplier of goods or services or both which receives tax invoices towards the receipt of input services, including invoices in respect of services liable to tax under sub-section (3) or sub-section (4) of section 9, for or on behalf of distinct persons referred to in section 25, shall be required to be registered as Input Service Distributor under clause (viii) of section 24 and shall distribute the input tax credit in respect of such invoices.

1. (2) The Input Service Distributor shall distribute the credit of State tax or integrated tax charged on invoices received by him, including the credit of State or integrated tax in respect of services subject to levy of tax under sub-section (3) or subsection (4) of section 9 paid by a distinct person registered in the same State as the said Input Service Distributor, in such manner, within such time and subject to such restrictions and conditions as may be prescribed.
2. (3) The credit of State tax shall be distributed as State tax or integrated tax and integrated tax as integrated tax or State tax, by way of issue of a document containing the amount of input tax credit, in such manner as may be prescribed.".

After the existing section 122 and before the existing section 123 of the principal Act, the following new section shall be inserted, namely:–– ''122A. Penalty for failure to register certain machines used in manufacture of goods as per special procedure.- (1) Notwithstanding anything contained in this Act, where any person, who is engaged in the manufacture of goods in respect of which any special procedure relating to registration of machines has been notified under section 148, acts in contravention of the said special procedure, he shall, in addition to any penalty that is paid or is payable by him under Chapter XV or any other provisions of this Chapter, be liable to pay a penalty equal to an amount of one lakh rupees for every machine not so registered.

1. (2) In addition to the penalty under sub-section (1), every machine not so registered shall be liable for seizure and confiscation: Provided that such machine shall not be confiscated where––
   • (a) the penalty so imposed is paid; and
   • (b) the registration of such machine is made in accordance with the special procedure within three days of the receipt of communication of the order of penalty."."

In section 3 of the Rajasthan Value Added Tax Act, 2003 (Act No. 4 of 2003), hereinafter in this Chapter referred to as the principal Act, for the existing sub-section (2), the following shall be substituted, namely:- "(2) Notwithstanding anything contained in sub-section (1) a dealer other than those specified in clause (a) of sub-section (1) or the dealer or class of dealers as may be notified by the State Government, who purchases goods from a registered dealer of the State and sells, such goods or goods manufactured from such goods within the State, may opt for payment of tax on his turnover, at the rate as may be notified under sub-section (3) of section 4, subject to the condition that annual turnover of such dealer does not exceed-

1. (i) rupees fifty lacs, in case of a dealer specified in clause (b) of subsection (1); and
2. (ii) rupees seventy five lacs, in case of other dealers."

In section 4 of the principal Act,-

1. (i) in sub-section (1), for the existing expression “and shall be levied on the taxable turnover of sale of goods specified in Schedule III to Schedule VI at the rate mentioned against each of such goods in the said Schedules”, the expression “and shall be levied on the taxable turnover of sale of goods specified in Schedule I at the rate mentioned against each of such goods in the said Schedule” shall be substituted.;
2. (ii) in sub-section (2), for the existing expression “in Schedule-III to Schedule VI of the Act”, the expression “in Schedule I of the Act” shall be substituted;
3. (iii) in sub-section (5), for the existing words “Schedules" and "Schedule”, the expression “Schedule I” shall be substituted.

In section 8 of the principal Act,-

1. (i) for the existing sub-section (1), the following shall be substituted, namely:- “(1) Notwithstanding anything contained in this Act, where the State Government is of the opinion that it is necessary or expedient in the public interest so to do, it may, by notification in the Official Gazette, exempt fully or partially, whether prospectively or retrospectively from tax the sale or purchase of any goods, without any condition or with such condition as may be specified in the notification.”;
2. (ii) The existing sub-section (2) shall be deleted.

For the existing Schedules I, II, III, IV, V and VI and entries thereto, if any, of the principal Act, the following Schedules and entries thereto shall be substituted, namely:-

Goods Taxable at following Rates S.No. Description of Goods Rate of Tax (%) Condition, if any 1. 2. 3. 4. 1. High and light speed diesel oil 17.30 2. Petrol 29.04 3. Aviation turbine fuel (ATF) 26 4. Petroleum Crude 5 5. Natural Gas in Liquefied or Gaseous state 10 6. Compressed Natural Gas (CNG) 10 7. Piped Natural Gas (PNG) 10 8. Country Liquor 10 9. Foreign Liquor, Indian Made Foreign Liquor and Beer. 30 10. Goods not covered in above entries 5.5

S.No. Exemption to person or Class of persons Conditions, if any 1. United Nations Organization and its constituent agencies 2. Foreign Diplomatic Missions and their diplomats 3. Aviation turbine fuel to any Airlines establishing 'HUB' in the State 4. (i) Canteen Stores Department, or (ii) Regimental or Unit-run Canteens attached to Military units. 5. Rajasthan State Road Transport Corporation 6. Indian Railways 7. Rajasthan Rajya Vidyut Utpadan Ltd., Rajasthan Rajya Vidyut Prasaran Ltd., Ajmer Vidyut Vitaran Nigam Ltd., Jaipur Vidyut Vitaran Nigam Ltd., Jodhpur Vidyut Vitaran Nigam Ltd. 8. Airlines which for the first time connect cities of the State having no air service 9. Registered Flying Clubs set up for training 10. BSF canteens in Rajasthan 11. Dealers having license for retail off, issued by the Excise Department, Government of Rajasthan. 12. (i) Jaipur City Transport Service Limited (ii) Ajmer City Transport Service Limited 13. CISF canteens in Rajasthan 14. CRPF canteens in Rajasthan 15. Registered dealers selling High and Light Speed Diesel Oil in the State 16. M/s. Rajasthan State Beverages Corporation Limited, Jaipur 17. Registered dealers selling Aviation Turbine Fuel to any airline which operates commercial flights in and/or from the state of Rajasthan 18. Dealers having license for retail sale of country liquor issued by the Excise Department, Government of Rajasthan. 19. Registered dealers having retail outlets of petroleum companies 20. Registered dealers selling Aviation Turbine Fuel at RCS Airports located within the State to airline operator which operates RCS Flights as defined in “Regional Connectivity Scheme – UDAN” issued by Ministry of Civil Aviation, Government of India 21. Registered dealers selling High Speed Diesel to manufacturers and works contractors and those engaged in mining, who are registered under the Rajasthan Goods and Service Tax Act, 2017 (Act No. 9 of 2017) 22. M/s Rajasthan State Ganganagar Sugar Mills Ltd. 23. Foreign Liquor, Indian Made Foreign Liquor and Beer, when sold to the dealers/persons not having retail off licenses issued by the Excise Department, Government of Rajasthan 24. Registered dealers selling Aviation Turbine Fuel to Flying Training Organisations and Aircraft type training Organisations approved by the Directorate General of Civil Aviation operating in the State of Rajasthan