By law, stamp duty is calculated based on the value of the warranty based on the average price or value at the time of the instrument.19 However, after the change, the stamp duty is calculated on the market value of the warranty. This ensures that, for listed securities, stamp duty is levied on the exact price on which it is liquidated and not on the average price of the day. Section 3 of the Stamp Act is the section that provides for the collection of stamp duty on certain instruments when it is executed. The corresponding provision in Section 3 is reproduced below: – For agreements or their registrations under the sub-paragraphs (b) and (c) of that article, there is no obligation to be collected if the proper tax is paid in accordance with Article 51 A. – The stock exchange/compensation/depository company must be paid, if applicable, within three weeks of the end of each month and in accordance with the rules established on its behalf by the central government on that behalf [Indian Stamp (Collection of Stamp- Duty through Stock Exchanges, Clearing Corporations and Depositories) Rules, 2019), in agreement with the state government, transfer the stamp duty levied to the state government, where the buyer`s residence is located. , and in the case where the buyer is established outside India, to the state government that has the seat of the member or broker of such a buyer, and in the case where there is no member of this type of trade of the buyer. , the state government, whose seat is the participant. In addition, prior to this transfer, the exchange or clearing company approved by it or the custodian has the right to deduct the percentage of stamp duty on the relief fees set by these rules. 15. If the non-payment or short payment of stamp duty is due to chance, error or urgency, the person may submit the document to the collector within one year.
In this case, the collector can receive the amount and confirm the document that the tax has been paid (section 41 of the ISA). Section 17 of the Stamp Act specifies when an instrument must be stamped. As far as the obligation of the state is concerned, it is generally different from state to state. Nevertheless, there is a general pattern that is followed. Let`s take a look, for example, at the stamp duty imposed by the Karnataka government. Apart from the above documents, the Karnataka government imposes a stamp duty: the above amendment applies only to the electronic document drawn up for a transaction in a stock exchange or custodian, but (a) the above section is unchanged. Therefore, it may appear that the term « document » in clause a) does not contain electronic documents, but such an interpretation will not be within the meaning of the law. The Information Technology Act has already legally recognized electronic registrations. Therefore, the word « document » must be read in such a way as to include electronic documents as well. Same right as for transport on the amount guaranteed by Act 7.