Kinds of Stamps and the Mode of Using Them

In one line

Duty is paid by means of stamps, which may be adhesive or impressed or paid electronically, and the Act is strict about how a stamp is used, because a stamp used wrongly leaves the document not duly stamped.

In exam wording: section 10 provides that, except as otherwise expressly provided, all duties with which any instrument is chargeable shall be paid, and such payment indicated on the instrument, by means of stamps, according to the provisions of the Act or, where none applies, as the State Government directs by rules.

Section 10: duty is paid by stamps

Sub-section (1) lays down the basic rule and sub-section (2) allows rules regulating, for each kind of instrument, the description of stamps that may be used and, for impressed stamps, the number of stamps.

Sub-section (2-1A), inserted in 2003, requires impressed stamps to bear the stamp and signature with date of the authorised officer of the Treasury, sub-Treasury or General Stamp Office, or of the proper officer appointed by the Chief Controlling Revenue Authority, Superintendent of Stamps or Collector of Stamps, unless the Chief Controlling Revenue Authority does away with the requirement by notification.

Sub-sections (2A) to (2C): franking. The Chief Controlling Revenue Authority may authorise the use of a franking machine for making impressions on instruments to indicate payment of duty, may authorise a person, body or organisation to use one where the volume of instruments makes it necessary in the public interest, and may determine the procedure. This is why duty is commonly paid at a bank counter which franks the document.

Sub-section (3) empowers the Chief Controlling Revenue Authority to specify by notification the instruments in Schedule I in respect of which duty is to be paid in the ways there set out, which is the gateway to the electronic methods.

Sections 10A to 10D: the modern methods

These four sections are what the Act now runs on in practice, and they were the subject of the Maharashtra Stamp (Amendment) Act 2025, which streamlined online payment.

Section 10A: duties to be paid in cash, by demand draft or by pay order. Duty may be paid in cash or by demand draft or pay order into a Government treasury or an authorised bank by a Government-controlled body or person, the payment being certified by endorsement on the instrument.

Section 10B: provides for the certificate of such payment and its effect.

Section 10C: deals with the e-payment of duty, the electronic route by which duty is credited to Government and evidenced.

Section 10D: provides for the electronic secure bank and treasury receipt, commonly called the e-SBTR, and for other electronic evidences of payment, and for the manner in which they are to be used on the instrument.