The Rest of the Maharashtra Stamp Act

In one line

How the value on which duty is charged is worked out, what happens to a person who executes an unstamped document, and how to read Schedule I.

Sections 20 to 29: how the value is arrived at

Sections 3 to 9 say which instruments are charged. Schedule I says at what rate. This group of sections answers the question in between: on what amount is the rate applied.

Section 20: foreign currency. Where duty is chargeable ad valorem on money expressed in a currency other than that of India, the duty is calculated on the value of that money in the currency of India, according to the rate of exchange prevailing on the date of the instrument.

Section 21: stock and marketable securities. Where duty is chargeable ad valorem on stock or a marketable security, it is calculated on the value of the stock or security according to the average price or the value on the date of the instrument.

Section 22: where an instrument is chargeable on the amount secured, and the interest is expressed as a rate, the duty is calculated as the section directs.

Section 23: interest expressly made payable. Where interest is expressly made payable by the terms of an instrument, no further duty is chargeable in respect of it.

Section 24: certain instruments connected with a mortgage of marketable securities are chargeable as agreements relating to a pledge.

Section 25: valuation in case of annuity. Where duty is chargeable on an instrument securing an annuity or other periodical payment, the value is computed as the section prescribes, according to whether the payment is for a definite period, in perpetuity, or for an indefinite time.

Section 26: stamp where the value of the subject matter is indeterminate. Where the amount or value cannot be, or, in the case of certain instruments, is not, ascertained at the date of execution, the section fixes how duty is charged.

Section 27: the market value must be set forth. The consideration and all other facts and circumstances affecting the chargeability of the instrument, or the amount of the duty, must be fully and truly set forth in it. The second proviso permits the Collector, in the cases it names, to act as clause (a) provides, and that clause is one of the powers section 53 makes subject to the Chief Controlling Revenue Authority's control.

Section 28 requires those facts to be set forth, and section 62 makes an omission to comply an offence, which is the sanction behind it.

Section 29: direction as to duty in certain conveyances. Where property is contracted to be sold for one consideration and is conveyed in separate parts to different persons, or where a sub-purchaser takes a conveyance, the section directs how the duty is apportioned or charged.