Tuesday, 11 August 2015

Stamp ( Amendment) Act 2015.

A
BILL
further to amend the Stamp Act, 1899.
Whereas it is expedient further to amend the Stamp Act, 1899 (II of 1899) for purposes hereinafter appearing; It is enacted as follows:

1.               Short title and commencement.– (1) This Act may be cited as the Stamp ( Amendment) Act  2015.
(2) It shall come into force on such date as the Government may, by notification, appoint and different dates may be appointed for coming into force of the provisions of this Act in different local areas.
2.               Amendment in section 2 of Act II of 1899.– In the Stamp Act, 1899 (II of 1899), hereinafter referred to as the said Act, in section 2:
(a)             for clause (11), the following shall be substituted:
“(11)                “duly stamped” means affixation of an adhesive or impressed stamp or e-stamp of not less than the requisite amount and that the stamp has been legally affixed, used or electronically generated;”
(b)             after clause (11),  the following clause (11A) shall be inserted:
“(11A) “e-stamp” means a paper printed or partially printed containing a bar code or having any of  its unique identification code and such other information, as may be specified by the rules, to be generated and printed, on deposit of money equivalent to chargeable stamp duty in the account of the Government;”
(c)              for clause (13), the following shall be substituted:
“(13)    “impressed stamp” includes– (a) the label affixed and impressed by the proper officer;
(b)           the stamp embossed or engraved on a stamp paper; and (c) an e-stamp.”; and
(d) in clause (14), after the word “recorded”, the words “and includes any instrument executed in electronic form” shall be inserted.
3.               Amendment in section 10 of Act II of 1899.– In the said Act, in section 10:
(a)             in subsection (1), after the word “stamps”, the words “or e-stamps” shall be inserted; and
(b)             in subsection (2), in clause (a), after the word “stamps”, the words “or estamps” shall be inserted.
4.               Insertion of section 32A in Act II of 1899.– After section 32,  the following section 32A shall be inserted:
32A. Certificate of designated officer.– An officer designated by the Government shall, by notification in the official Gazette, issue a certificate as to genuineness or otherwise of an e-stamp for the purpose of evidence in a legal proceedings.” STATEMENT OF OBJECTS AND REASONS
Under the existing provisions of the Stamp Act, 1899, all duties with which any instruments are chargeable are indicated as stamps. The rates of stamp duty on instruments are given in Schedule I to the Act. Stamps under the Act are of two types namely adhesive stamps and impressed stamps. These are non-judicial stamps. Judicial stamps are used for payment of court fee under the Court Fee Act, 1870. It has been observed that leakages in stamp duty result due to availability and use of fake stamps prepared by criminals. The Electronic Transactions Ordinance, 2002, inter alia, provides that notwithstanding anything contained in the Stamp Act, 1899, for a period of two years from the date of commencement of this Ordinance or till the time the Provincial Governments devise and implement appropriate measures for payment and recovery of stamp duty through electronic means, whichever is later, stamp duty shall not be payable in respect of any instrument executed in electronic form. Therefore, in order to cope with leakages of stamp duty through use of fake stamp papers and also to facilitating public at large, the Government has decided to launch e-stamping under which electronically generated stamp paper will be issued to the public after deposit of amount of proper stamp duty in banks authorized by Government. Initially, only nonjudicial e-stamps will be issued on paper of good quality, bar coded with security features and containing unique ID of parties to the instrument. The scheme will be introduced through pilot projects in a few districts of the Punjab. In view of the forgoing details, amendments are required to be brought about in the Stamps Act, 1899. Hence this Bill.

MINISTER INCHARGE 

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