Section 9 Indian Stamp Act

Section 9 of the Indian Stamp Act 1899 is about Power to reduce, remit or compound duties. It is under ‘A.—Of the liability of instruments to duty’ of CHAPTER II (Stamp Duties) of the Act.

Power to reduce, remit or compound duties.

[(1)] ²[The ³***Government] may, by rule or order published in the Official Gazette,–

---

(a) reduce or remit, whether prospectively or retrospectively, in the whole or any part of ⁴[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 members of such class, are chargeable, and

---

(b) provide for the composition or consolidation of duties ⁵[of policies of insurance and] in the case of issues by any incorporated company or other body corporate ⁶[or of transfers (where there is a single transferee, whether incorporated or not)] of debentures, bond or other marketable securities.

---

⁷[(2) In this section the expression “the Government” means,–

---

(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, and in relation to any other stamp-duty chargeable under this Act and falling within entry 96 in List I in the ⁸[Seventh Schedule to the Constitution, expect the subject matters referred to in clause (b) of sub-section (1)]; the Central Government;

---

(b) Save as aforesaid, the State Government.]

---

STATE AMENDMENT

Karnataka–

Insertion of new section 9A.–After section 9 of the Indian Stamp Act, 1899 (Central Act 2 of 1899), the following section shall be inserted, namely:–

---

“9A. Power of State Government to consolidate duties in respect of receipts.–Subject to such conditions as may be specified, the State Government may, by order, provide for the consolidation of duties in respect of any receipts or class of receipts given by any person or class of persons including any Government.”

---

[Vide Karnataka Act 29 of 1978, s. 2]

Section 8G Indian Stamp Act

Section 8G of the Indian Stamp Act 1899 is about Strategic sale, disinvestment, etc., of immovable property by Government company not liable to stamp duty. It is under ‘A.—Of the liability of instruments to duty’ of CHAPTER II (Stamp Duties) of the Act.

Strategic sale, disinvestment, etc., of immovable property by Government company not liable to stamp duty.

Notwithstanding anything contained in this Act or any other law for the time being in force, any instrument for conveyance or transfer of a business or asset or right in any immovable property from a Government company, its subsidiary, unit or joint venture, (i) by way of strategic sale or disinvestment or demerger or any other scheme of arrangements or through any law, to another Government company or to the Central Government or any State Government or to the development financial institution established by any law made by Parliament; or

---

(ii) which is to be wound up, closed, struck-off, liquidated or otherwise shut down, to another Government company or to the Central Government or any State Government, after approval of the Central Government or the State Government, as the case may be, shall not be liable to duty under this Act.

---

Explanation.—For the purposes of this section, “Government company” shall have the same meaning as assigned to it in clause (45) of section 2 of the Companies Act, 2013 (18 of 2013).]

---

Section 8E Indian Stamp Act

Section 8E of the Indian Stamp Act 1899 is about Conversion of a branch of any bank into a wholly owned subsidiary of bank or transfer of shareholding of a bank to a holding company of bank not liable to duty. It is under ‘A.—Of the liability of instruments to duty’ of CHAPTER II (Stamp Duties) of the Act.

Conversion of a branch of any bank into a wholly owned subsidiary of bank or transfer of shareholding of a bank to a holding company of bank not liable to duty.

Notwithstanding anything contained in this Act or any other law for the time being in force,–

---

(a) conversion of a branch of a bank into a wholly owned subsidiary of the bank or transfer of shareholding of a bank to a holding company of the bank in terms of the scheme or guidelines of the Reserve Bank of India shall not be liable to duty under this Act or any other law for the time being in force; or

---

(b) any instrument, including an instrument of, or relating to, transfer of any property, business, asset whether movable or immovable, contract, right, liability and obligation, for the purpose of, or in connection with, the conversion of a branch of a bank into a wholly owned subsidiary of the bank or transfer of shareholding of a bank to a holding company of the bank in terms of the scheme or guidelines issued by the Reserve Bank of India in this behalf, shall not be liable to duty under this Act or any other law for the time being in force.

---

Explanation.–

---

(i) For the purposes of this section, the expression bank means–

---

(a) “a banking company” as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);

---

(b) “a corresponding new bank” as defined in clause (da) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);

---

(c) “State Bank of India’ constituted under section 3 of the State Bank of India Act, 1955 (23 of 1955);

---

(d) “a subsidiary bank” as defined in clause (k) of section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959);

---

(e) “a Regional Rural Bank” established under section 3 of the Regional Rural Banks Act, 1976 (21 of 1976);

---

(f) “a Co-operative Bank” as defined in clause (cci) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);

---

(g) “a multi-State co-operative bank” as defined in clause (cciiia) of section 5 of the Banking Regulation Act, 1949 (10 of 1949);

---

(ii) For the purposes of this section, the expression the Reserve Bank of India means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934).]

Section 8D Indian Stamp Act

Section 8D of the Indian Stamp Act 1899 is about Agreement or document for assignment of receivables not liable to stamp duty. It is under ‘A.—Of the liability of instruments to duty’ of CHAPTER II (Stamp Duties) of the Act.

Agreement or document for assignment of receivables not liable to stamp duty.

Notwithstanding anything contained in this Act or any other law for the time being in force, any agreement or other document for assignment of receivables as defined in clause (p) of section 2 of the Factoring Regulation Act, 2011 in favour of any factor as defined in clause (i) of section 2 of the said Act shall not be liable to duty under this Act or any other law for the time being in force.

Section 8C Indian Stamp Act

Section 8C of the Indian Stamp Act 1899 is about Negotiable warehouse receipts not liable to stamp duty. It is under ‘A.—Of the liability of instruments to duty’ of CHAPTER II (Stamp Duties) of the Act.

Negotiable warehouse receipts not liable to stamp duty.

Notwithstanding anything contained in this Act, negotiable warehouse receipts shall not be liable to stamp duty.

Section 8B Indian Stamp Act

Section 8B of the Indian Stamp Act 1899 is about Corporatisation and demutualisation schemes and related instruments not liable to duty. It is under ‘A.—Of the liability of instruments to duty’ of CHAPTER II (Stamp Duties) of the Act.

Corporatisation and demutualisation schemes and related instruments not liable to duty.

Notwithstanding anything contained in this Act or any other law for the time being in force,–

---

(a) a scheme for corporatisation or demutualisation, or both of a recognised stock exchange; or

---

(b) any instrument, including an instrument of, or relating to, transfer of any property, business, asset whether movable or immovable, contract, right, liability and obligation, for the purpose of, or in connection with, the corporatisation or demutualisation, or both of a recognised stock exchange pursuant to a scheme,

---

as approved by the Securities and Exchange Board of India under sub-section (2) of section 4B of the Securities Contracts (Regulation) Act, 1956 (42 of 1956), shall not be liable to duty under this Act or any other law for the time being in force.

---

Explanation.– For the purposes of this section,–

---

(a) the expressions “corporatisation”, “demutualisation” and “scheme” shall have the meanings respectively assigned to them in clauses (aa), (ab) and (ga) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);

---

(b) “Securities and Exchange Board of India” means the Securities and Exchange Board of India established under section 3 of the Securities and Exchange Board of India Act, 1992 (15 of 1992).]

Section 8A Indian Stamp Act

Section 8A of the Indian Stamp Act 1899 is about Securities dealt in depository not liable to stamp-duty. It is under ‘A.—Of the liability of instruments to duty’ of CHAPTER II (Stamp Duties) of the Act.

Securities dealt in depository not liable to stamp-duty.

Notwithstanding anything contained in this Act or any other law for the time being in force,—

---

(a) an issuer, by the issue of securities to one or more depositories, shall, in respect of such issue, be chargeable with duty on the total amount of securities issued by it and such securities need not be stamped;

---

(b) the transfer of registered ownership of securities from a person to a depository or from a depository to a beneficial owner shall not be liable to duty;

---

Explanation.—For the purposes of this section, the expression “beneficial ownership” shall have the same meaning as assigned to it in clause (a) of sub-section (1) of section 2 of the Depositories Act, 1996 (22 of 1996)]

Section 8 Indian Stamp Act

Section 8 of the Indian Stamp Act 1899 is about Bonds, debentures or other securities issued on loans under Act XI of 1879. It is under ‘A.—Of the liability of instruments to duty’ of CHAPTER II (Stamp Duties) of the Act.

Bonds, debentures or other securities issued on loans under Act XI of 1879.

(1) Notwithstanding anything in this Act, any local authority raising a loan under the provisions of the Local Authorities Loan Act, 1879 (XI of 1879) or, of any other law for the time being in force, by the issue of bonds, debentures or other securities, shall, in respect of such loan, be chargeable with a duty of ¹ [one per centum] on the total amount of the bonds, debentures or other securities issued by it, and such bonds, debentures or other securities need not be stamped and shall not be chargeable with any further duty on renewal, consolidation, sub-division or otherwise.

---

(2) The provisions of sub-section (1) exempting certain bonds, debentures or other securities from being stamped and from being chargeable with certain further duty shall apply to the bonds, debentures or other securities of all outstanding loans of the kind mentioned therein, and all such bonds, debentures or other securities shall be valid, whether the same are stamped or not:

---

Provided that nothing herein contained shall exempt the local authority which has issued such bonds, debentures or other securities from the duty chargeable in respect thereof prior to the twenty-sixth day of March, 1897, when such duty has not already been paid or remitted by order issued by the Central Government.

---

(3) In the case of wilful neglect to pay the duty required by this section, the local authority shall be liable to forfeit to the Government a sum equal to ten per centum upon the amount of duty payable, and a like penalty for every month after the first month during which the neglect continues.

Section 7 Indian Stamp Act

Section 7 of the Indian Stamp Act 1899 is about  Policies of sea-insurance. It is under ‘A.—Of the liability of instruments to duty’ of CHAPTER II (Stamp Duties) of the Act.

 Policies of sea-insurance.

(4) Where any sea-insurance is made for or upon a voyage and also for time, or to extend to or cover any time beyond thirty days after the ship shall have arrived at her destination and been there moored at anchor, the policy shall be charged with duty as a policy for or upon a voyage, and also with duty as a policy for time.