Rajasthan act 014 of 1999 : Rajasthan Stamp Act, 1998

1. This Act may be called the Rajasthan Stamp Act, 1998.

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2. It extends to whole of the State of Rajasthan.

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3. It shall come into force on such ¹date as the State Government may, by notification in the Official Gazette, appoint,

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1. This Act come into force w.e.f. 27.5.2004 vide Notification No. F. 2(3) FD/Tax Div/98-II dated 27.5.2004

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In this Act, unless there is something repugnant in the subject or context,

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(i) "air-rights" shall mean rights to construct upper floors for sale and use, independent of the existing building;

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²(ia) 'association' means any association of person, exchange broker, or any other organisation or body of persons, whether incorporated or not, and regulating or controlling or conducting business of the sale or purchase of, or other transaction relating to, any goods or marketable securities.

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³(ii)"Banker" means an association, a company or a person who accepts, for the purpose of lending or investment, deposits of money from the public, repayable on demand or otherwise, and

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1. This Act come into force w.e.f. 27.5.2004 vide Notification No. F. 2(3) FD/Tax Div/98-II dated 27.5.2004

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2. Inserted by the Raj. Finance Act 2006 (Act No. 4 of 2006) (w.e.f. 8.3.2006).

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3. Substituted by the Raj. Finance Act 2013 (Act No. 12 of 2013) (w.e.f. 10.4.2013)

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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,-

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(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 commencement of this Act;

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¹ (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:

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Provided that no duty shall be chargeable in respect of, -

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(i) any instrument executed by or on behalf of, or in favour of, the Government in cases where, but for this exemption, the Government would be liable to pay the duty chargeable in respect of such instrument;

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(ii) any instrument for the 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 registered under the Merchant Shipping Act, 1958 (Act No. 44 of 1958), as amended by subsequent Acts.

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²3-A, Certain instruments chargeable with surcharge –

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(1) All instruments chargeable with duty under section 3 read with schedule to the Act, shall be chargeable with surcharge at such rate not exceeding 10 percent of the duty chargeable on such instruments under section 3 read with Schedule to the Act, as may be notified by the State Government, for the purpose of the development of basic infrastructure facilities such as rail or road transportation system, communication system, power distribution system, sewerage system, drainage system or any other such public utilities serving any area of the State and for financing Municipalities and Panchayati Raj Institutions and

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(2) The surcharge chargeable under sub-section (1) shall be in addition to any duty chargeable under section 3.

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(3) Except as otherwise provided in sub-section (i), Provisions of this Act shall so far as may be apply in relation to the surcharge, chargeable under sub-section (1) as they apply relation to the duty chargeable under-section 3.

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³ (4) Save as provided in sub-section (3), the State Government may make rules for collection of surcharge leviable under this section and for regulating the duties and remuneration of the person through whom surcharge is collected.

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⁴[3-B. Surcharge for conservation and propagation of cow and its progeny.-

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⁵ (1) All instruments chargeable with duty under section 3 read with Schedule to the Act, shall be chargeable with surcharge at such rate not exceeding ⁶20 percent of the duty chargeable on such instruments under section 3 read with Schedule to the Act, as may be notified by the State Government, for the purpose of conservation and propagation of cow and its progeny.]

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(2) The surcharge chargeable under sub-section (1) shall be in addition to any duty chargeable under section 3 and any surcharge chargeable under section 3-A.

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(3) Except as otherwise provided in sub-section (1), provisions of this Act shall so far as may be apply in relation to the surcharge,

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1. Substituted by the Raj. Finance Act, 2019(Act No. ...... of 2019)

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2. Inserted by the Raj. Finance Act, 2011(Act No. 15 of 2011) (w.e.f. 09-03-2011) and sub section (i) was substituted by the Raj. Finance Act, 2017.

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3. Inserted by Rajasthan Finance Act, 2017

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4. Inserted by Rajasthan Finance Act, 2016(Act No. 5 of 2016).

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5. Sub-section (1) was Substituted by the Rajasthan Finance Act, 2017.

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6. The Rajasthan Stamp (Amendment) Act, 2018.

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²(1) Notwithstanding anything contained in section 10,-

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(i) any instrument chargeable with the stamp duty may be executed on an unstamped paper; and

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(ii) The stamp duty chargeable on such instrument may be paid or collected in such manner as the State Government may prescribe by rules.

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(2) The registering officer or any other officer authorized by the State Government shall, on production of such proof of payment of stamp duty under clause (ii) of sub-section (1) as the State Government may prescribe by rules, endorse on the instrument the amount of stamp duty so paid in such manner as the State Government may prescribe by rules.

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(3) An instrument endorsed under sub-section (2) shall be deemed to be duly stamped under this Act and may be used or acted upon as such to all intents and for all purposes.

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³[4-A. Rounding off of fractions in duty, fee or surcharge payable or allowances to be made.

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- In determining the amount of duty, surcharge or fee payable, or of the allowances to be made, under this Act, any fraction of one rupee, equal to or exceeding fifty paise shall be rounded off to the next one rupee, and any fraction of less than fifty paise shall be disregarded.]

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2. Substituted by Rajasthan Finance Act, 2014 (Act No. 14 of 2014)(w.e.f. 14-07-2014)

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3. Substituted by Rajasthan Finance Act, 2018 (Act No. 7 of 2018) (w.e.f. 12-02-2018)

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(1) Where, in case of any of sale, mortgage, ²[agreement or any other document (memorandum etc.) relating to the deposit of title deeds] or settlement, several instruments are employed for completing the transaction, only the principal instrument shall be chargeable with the duty prescribed for it in the Schedule ³[and each of the other instruments shall be chargeable with a duty of two hundred rupees instead of the duty, if any, prescribed for it in that Schedule.]

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(2) The parties may determine for themselves which of the instruments so employed shall, for the purposes of sub-section (1), be deemed to be the principal instrument:

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Provided that the duty chargeable on the instrument so determined shall be the highest duty which would be chargeable in respect any of the said instruments employed.

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2. Inserted by the Rajasthan Finance Act, 2017. (w.e.f. 30-03-2017)

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3. Substituted by the Rajasthan Finance Act, 2017. (w.e.f. 30-03-2017)

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(1) Notwithstanding anything contained in section 5 or section 7 or in any other law for the time being in force, the duty chargeable on any of the several instruments employed for completing a transaction 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 of Rajasthan 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 20 unless it is proved that the duty chargeable under this Act has been paid-

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(a) On the principal or original instrument, as the case may be,

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(b) Or in accordance with the provisions of this section.

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(2) Notwithstanding anything contained in section 39 or in any other law for the time being in force, no instrument, counterpart, duplicate or copy chargeable with duty under this section shall be received in evidence as properly stamped unless the duty chargeable under this section has been paid thereon: Provided that a court before which any instrument, counterpart, duplicate or copy is produced, shall permit the duty chargeable under this section to be paid thereon any may then receive it in evidence.

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(1) The Government, if satisfied that it is necessary to do so in the public interest, may by rule or order published in Official Gazette, reduce or remit, whether prospectively or retrospectively, in the whole or any part of the territories under its administration, the duties with which any instruments or any particular class of instruments, or any of the instruments belonging to such class, or any instruments when executed by or in favour of any particular class of persons, or by or in favour of any member of such class are chargeable.

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(2) The Inspector General of Stamps may by order provide for the composition or consolidation of duties in the case of receipt, policy of Insurance and issues by any incorporated company or other body corporate or of transfers where there is a single transferee, whether incorporate or not, of debentures, bonds or other marketable securities.

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Explanation- In sub-section (1) of section 9, the expression "the Government means,-"

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(a) in relation to stamp duty in respect of bills of exchange, cheques, promissory notes, bills of lading, letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts chargeable to stamp duty under the Indian Stamp Act, 1899 (Act No. 2 of 1899) the Central Government,

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(b) save as aforesaid, the State Government.

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¹[9.A. Power to reduce or remit penalty or interest- The State Government, if satisfied that it is necessary to do so in the public interest, may by notification published in the official Gazette, reduce or remit, the penalty or interest or both imposed or chargeable under this Act.]

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1. Inserted by Act No. 7 of 2004 (w.e.f. 27.5.2004).

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(1) Except as otherwise expressly provided in this Act, all duties with which any instrument are chargeable shall be paid, and such payment shall be indicated on such instruments by means of stamps,-

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(a) according to the provisions herein contained, or

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(b) When no such provision is applicable thereto, as the State Government may, by rule, direct.

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(2) the rules made under sub-section (1) may, among other matters, regulate,-

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(a) in the case of each kind of instrument the description of stamps which may be used;

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(b) in the case of instruments stamped with impressed stamps, the number of stamps which may be used; and

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(c) in the case of bills of exchange or promissory notes, the size of the paper on which they are written.

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(3) The Inspector General of Stamps may, subject to such conditions as he may deem fit to impose, authorize use of franking machine or any other machine specified by the State Government, for making impressions on instruments chargeable with duties to indicate payment of duties payable on such instruments,

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(4) (i) Where the Inspector General of Stamps or the Superintendent of Stamps when authorized by the Inspector General of Stamps in this behalf, is satisfied that having regard to the extent of instruments executed and the duty chargeable thereon, it is necessary in public interest to authorize any person, body or organization to such use of franking machine or any other machine, he may, by order in writing authorize such person, body or organization; and

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(ii) Every such authorization shall be subject to such conditions, if any, as the Inspector General of Stamps may, by any general or special order, specify in this behalf. (5) The procedure to regulate the use of franking machine or any other machine as so authorized shall be such as the Inspector General of Stamps may, by order determine.

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(6) An impression made under sub-sections (3) (4) and (5), on any instrument, shall have the same effect as if duty of an amount equal to the amount indicated in the impression has been paid, in respect of such instrument by means of stamps, under sub-section (1).

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¹10-A. Certain departments, organisations, institutions etc., to ensure payment of stamp duty.- (1) Notwithstanding anything contained in this Act, the State Government may, by notification in the Official Gazette, direct that any department of the State Government, institution of Local Self-Government, SemiGovernment organization, banking or nonbanking financial institution or the body owned, controlled or substantially financed by the State Government or any class of them, shall ensure that the proper stamp duty is paid to the State Government through electronic Government Receipt Accounting System (e-GRAS) in respect of such instruments, as may be specified in the notification, passing through their system or related to their functioning of which registration is not compulsory.

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(2) The Inspector General of Stamps shall authorise a person nominated by such department or body, etc. as mentioned in sub-section (1) as a proper officer for defacing the challan and making the endorsement on such instruments.

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(3) It shall be the duty of the proper officer so authorised under subsection (2) to make an endorsement on the instruments after defacing the challan, as follows:- Stamp duty of Rs._________ paid in *cash/by demand draft/by pay order/ e-Challan vide Receipt/Challan No._________/GRN No._______ CIN____ dated the___________.

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1. Inserted by Rajasthan Finance Act, 2018 (Act No. 7 of 2018) (w.e.f. 20.03.2018)

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