Friday, May 27, 2016

INSTRUMENT CHARGEABLE WITH DUTY NOT STAMPED: CONSEQUENCES


Consequences regarding Instrument chargeable with duty not stamped:-

1.       Inadmissible as an evidence for any purpose.
2.       Instrument shall not be eligible for registration.
3.       Shall not be acted upon.
4.       Instrument shall not be authenticated by any person or any govt. authority.

An instrument which is not properly stamped is not invalid document. Such insufficiently stamp document become valid evidence by payment of penalty. It is defined by a well known case law between K.Narashime Rao vs. Sai Vishnu.

Photocopy of an agreement is not an instrument. Such copy of document which is unstamped can’t be validated by payment of stamp duty and penalty.


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