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Stamp (Amendment)


Published: 1973

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Stamp (Amendment)

Stamp (Amendment)

A LAW TO AMEND THE STAMP ORDINANCE.
BE It enacted by the National State Assembly of the. "Republic of-Sri Lanka as follows: -
Short title. 1. This Law may be cited as the Stamp (Amendment) Law, No. 21 of 1973.
Replacement of section 34 of Chapter 247. 2. Section, 34 of the Stamp Ordinance (hereinafter-referred to as the "principal enactment"), as and the following new section substituted therefor: -
"Obligation to give receipt in certain cases. 34. Any person receiving any money amounting to. twenty rupees or upwards, or any bill of exchange, cheque, or promissory note for an amount of twenty rupees or upwards, or receiving in satisfaction or part satisfaction of a debt any movable property amounting to twenty rupees or upwards in value, shall give a. duly stamped receipt for the same:
Provided however that the Commissioner may, by notification published in the Gazette, exempt the requirement to give a duly stamped receipt, in respect of such matters as may be specified In such notification".
Amendment of section 36 of the principal enactment. 3. Section 38 of the principal enactment, as amended by Act No. 16 of 1958, is hereby further amended by the repeal of subsection (8) of that section and the substitution therefor of the following. new subsection: -
" (3) Any insurance upon which an endorsement has been, made under this section shall be deemed to be duly stamped or not chargeable with duty, as the case may be; and if chargeable with duty shall be receivable in evidence or otherwise, and may be acted upon and registered as if it had 'been originally duly stamped:
Provided that nothing in this section shall authorize the Commissioner to endorse-
(a) any instrument executed or first executed, in Sri Lanka and brought to him after the expiration of one month from the date of its execution or first execution., as the case may be:
(b) any instrument executed, or first executed out of Sri Lanka and brought to him after the expiration of three months after it has been first received in Sri Lanka; or
(c) any instrument chargeable with a duty not exceeding fifteen cents, or any bill of exchange or promissory note, when brought to him after the drawing or execution thereof, on paper not duly stamped.".
Replacement of section 40 of the principal enactment. 4. Section 40 of the principal enactment, as amended by Act No. 16 of 1958, is hereby repealed and the following new section substituted therefor: -
"Special provision as to unstamped receipts. 40. Where any receipt. chargeable with a duty of fifteen cents is tendered to or produced before any officer unstamped in. the course of the audit of any public accounts, such officer may in his discretion, instead of impounding the instrument, require a duly stamped receipt to be substituted therefor.".
Replacement of motion 41 of the principal enactment. 5. Section 41 of the principal enactment, as amended by Act No. 16 of 1958, is hereby repealed and the following new section substituted therefor: -
"Instruments not duly stamped inadmissible in evidence, &c. 41. No instrument chargeable with duty shall be admitted in evidence for any purpose by any person having by law or consent of parties authority to receive evidence, or shall be acted upon, registered, or authenticated by any such person or by any state officer, unless such instrument is duly stamped:
Provided that-
(a) any such instrument not being an instrument chargeable with a duty not exceeding fifteen cents or a bill of exchange or promissory note shall, subject to all just exceptions and to the pro-visions of section 42, be admitted in evidence on payment of the duty with which the same is chargeable, or, in case of an instrument insufficiently stamped, of the amount required to make up the duty, together with a penalty- Rs.c.
(i) in cases where the duty or deficiency does not exceed Rs. 2, of...2 50;
(ii) in cases where the duty or deficiency exceeds Rs. 2 but does not exceed Rs. 7.50, of... 5 0;
(iii) in cases where the duty or deficiency exceeds Rs.. 7.50 but does not exceed Rs. 20, of...10 0:
(iv) where the duty or deficiency exceeds Rs. 20, the amount of the penalty to be imposed shall be determined by the Commissioner;
(b) where any person from, whom a stamped receipt could have been demanded has given an unstamped receipt, and such receipt if stamped would be admissible in evidence against him, then such receipt shall be admitted in evidence against him on payment of a penalty of one rupee by the "person tendering it;
(c) where a contract or agreement of any kind is effected by correspondence consisting of two or more letters, and any one of the letters bears the proper stamp, the contract or agreement shall be deemed, to be duly stamped;
(d) nothing herein, contained shall prevent the admission of any instrument in any court when such instrument has been executed by or on behalf of the Government, or where it hears the certificate of the Commissioner as provided by section 86-or any other provision of this Ordinance;
(e) nothing herein contained shall be taken to prevent the admission of any instrument in any criminal court.".
Amendment of section 46 of the principal enactment. 6. Section 46 of the principal enactment, as last amended by Act No. 50 of 1971, is hereby further amended by the repeal of subsection (1) of that section and the substitution therefor, of the following new subsection:- "
(1). When the Commissioner impounds any instrument under sections 38 and 39 or receives any instrument sent to him under section 44 (2), not being an instrument chargeable with a duty not exceeding fifteen cents, or a bill of exchange or promissory note, he shall adopt the following procedure: -
(a) if he is of opinion that such instrument is duly stamped or is not chargeable with duty, he shall certify by endorsement thereon that it is duly stamped, or that it is not so chargeable, as the case may be;
(b) if he is of opinion that such instrument is chargeable with duty and is not duly stamped, he shall by notice in writing require the payment of the proper duty or the amount required to make up the same, together with a penalty of five rupees; or, if he thinks fit, with a penalty up to ten times the amount of the proper duty or of the deficient portion thereof. whether such amount exceeds or falls short of five rupees.".
Replacement of section 47 of the principal enactment. 7. Section 47 of the principal enactment, as amended by Act No. 16 of 1958 is hereby repealed and the following new section substituted there- for:-
" Instruments "unduly stamped 'by accident, &c. 47. If any instrument chargeable with duty and not duly stamped, not being an. Instrument chargeable with a duty not exceeding fifteen cents or a bill of exchange or promissory note, is produced by any person of his own motion, before the Commissioner within, one year from the date of its execution, or first execution, and such person brings to the notice of the Commissioner the fact that such instrument is not duly stamped and offers to pay to the Commissioner the amount of the proper duty or the amount required to make up the same, and the Commissioner is satisfied that the omission duly to stamp such instrument has been occasioned by accident, mistake, or urgent necessity, he may, instead of proceeding under sections 38, 39 and 46, receive such amount and proceed as next hereinafter prescribed. ".
Replacement of section 53 of the principal enact- 8. Section 53 of the principal enactment is hereby-repealed and the following- new section substituted therefor: -
"Power of payer to stamp bills, promissory cheques received by him unstamped. 53. When any bill of exchange, promissory note, or cheque chargeable with a duty not exceeding fifteen cents is presented for payment unstamped, the person to whom, it is so presented may affix thereto the necessary adhesive stamp, and, upon cancelling the same in manner herein before provided, may pay the sum payable upon such bill, note, or cheque, and may charge the duty against the person who ought to have paid the same, or deduct it from the sum payable as aforesaid, and such bill, note, or cheque shall. so far as respects the duty, be deemed good and valid:
Provided that nothing herein contained shall relieve any person from any penalty or proceeding to which he may be liable in relation to such bill, note, or cheque.
Amendment of Part I of Schedule A to the principal enactment. 9. Part 1 of Schedule A to the principal enactment, as last amended by Act No." 50 of 1971 , is hereby further amended, as follows: -
(1) by the substitution for item 14 thereof of the following new item: -
" 14. Bill of Exchange (other than a cheque, a draft payable on demand and drawn by or on behalf of a hank in Sri. Lanka on itself or drawn by any person on a bank in Sri Lanka, 'and an order addressed to a bank for the payment to the party named therein of a sum of money weekly, monthly, or at any other stated periods or otherwise) payable on demand or at sight or on presentation or within three days after date or sight.. . 0 15
Bill of exchange, promissory note, draft, or order for the payment at any time otherwise than on demand or at sight or on presentation or within three days after date or sight, to the party named therein, or the bearer, or to order, of any sum of money-
Over Rs. 0 and not over Rs. 100.. . 0 20
Over Rs. 100 and not over Rs. 250.. . 0 80
Over Rs. 250 and not over Rs, 500.. . 0 50
Over Rs. 500 and not over Rs. 1,000.. . 1 0
Every further Rs. 1,000 or part thereof.. . 1 0
Cheque, draft payable on demand and drawn by or on behalf of a bank in Sri Lanka on itself or drawn by any person on a bank in Sri Lanka, and an order addressed to a bank for the payment to the party named therein, of any sum. of money weekly, monthly, or at any other stated periods or otherwise.. .. .. . 0 06
EXEMPTIONS
(a) All cheques drawn by any person in the service of the Government of the United Kingdom, in, the execution of his duties;
(b) all letters of credit, whether in sets or not, sent by persons in Sri Lanka to persons out of Sri Lanka authorizing drafts on Sri Lanka, or. any of the colonies or foreign possessions of the United Kingdom.";
(2) by the insertion, in item 16 thereof, immediately after paragraph (f) appearing under the heading " Exemptions from the preceding and all other Stamp Duties ", of the following new paragraph-: -
"(g) Letter of trust, trust receipt or declaration of trust in respect of corporeal movables in favour of an approved credit agency as defined in section 3 of the Mortgage Act (Chapter 89).";
(3) by the substitution, in item 23 thereof, for subparagraph (b) of paragraph (1) of that item, of the following new subparagraph:
" (b) conveyance or transfer of 'any immovable property for any consideration-
where the purchase or consideration money therein or thereupon expressed, or if the consideration be other than a pecuniary one, or partly pecuniary and partly other than pecuniary, the value of the property shall be
Over Rs. 0 and not over Rs. 50.. . 1 0
Over Rs. 50 and not over Rs. 100.. .. . 2 0
Over Rs. 100 and not Over Rs. 200.. . 4 0
Over Rs. 200 and not Over Rs. 300.. . 6 0
Over Rs. 300 and not Over Rs. 400.. . 8 0
Over Rs. 400 and not Over Rs. 500.. . 10 0
Over Rs. 500 and not over Rs. 1,000.. . 15 0
Over Rs. 1,000 and not over Rs. 15,000, for every Rs. 500 or part thereof 8 0
Over Rs. 15,000 and not over Rs. 50,000, for every Rs. 100 or part thereof... 3 0
Over Rs. 50,000 and not over Rs. 75,000, for every Rs. 100 or part thereof...4 0
Over Rs. 75,000 and not- over Rs. 100,000, for every Rs. 100 or part thereof...5 0
Over Rs. 100,000, for every Rs. 100 or part thereof...6 0:
Provided that where a conveyance or transfer of any immovable property is deemed by the Commissioner to be partly a conveyance or transfer and partly a gift, then, if the value of such property exceeds Rs. 15,000, the duty charge-able in respect of, such part of the transaction as is deemed to be a conveyance or transfer shall be at the appropriate rate as set out above notwithstanding that the consideration set forth in the Instrument of such conveyance or transfer Is less than Rs. 15,000 "; and
(4) by the substitution for item 49 thereof, off the following new item-
" 49. Receipt or discharge given for any money or other property amounting to Rs. 20 or' upwards.. . 0 15
EXEMPTIONS
(a) Deed of partition of any land held in common;
(b) receipt given for money or securities for money deposited in the hands of any banker' to be accounted for:
Provided that the same is not expressed to be received of, or by the hands of, any other than the person, to whom the same is to he accounted for:
Provided also that this exemption shall not extend to a receipt or acknowledgement for any sum paid or deposited for or upon a letter of allotment of a share, or in, respect of a call upon any scrip or share of or in any incorporated company or other body corporate or such proposed or intended company or body, or in respect of a debenture being a marketable security:
(c) receipt endorsed on or contained in any instrument duly stamped, or exempted under the proviso to section 2 (1), of this Ordinance (instruments executed on behalf of Government) , acknowledging the receipt of the consideration money therein expressed, or the receipt of any principal money, interest, or annuity, or other periodical payment thereby secured:
(d) receipts given, for the return of any duties of customs;
(e) receipts given, for value of goods taken by the State for undervaluation;
(f) receipts or discharges given by any officer in the service of the Government of Sri Lanka In the execution of his office:
Provided that this exemption shall not include a receipt given by any state officer to the Deputy Secretary to the Treasury or other authority for the payment of the salary of such state officer;
(g) receipts or discharges for pay or allowances given by officers and soldiers of the United Kingdom forces for the time being stationed in Sri Lanka;
(h) receipts or discharges given by any officer in the service of the Government of the United. Kingdom in the execution of his office;
(i) receipts for allowances paid by any department of Government out of moneys voted by the National State Assembly of the Republic of Sri Lanka for public assistance, relief of distress or unemployment relief. ".
Retrospective effect of amendment made by section 9 (1). 10. The amendment made to the principal enactment by paragraph (1) of section 9 shall be deemed to have come into effect on November 15, 1971.