Karnataka Stamp (Amendment) Act, 1999
[Karnataka Act 24 of 1999][18th August, 1999]
CONTENTS
1. Short title and commencement
4. Insertion of new Section 10-A
11. Insertion of new Section 46-B
13. Insertion of new Section 53-A
15. Insertion of new Sections 59-A and 59-B
18. Substitution of Section 66
19. Substitution of Section 67
20. Substitution of Section 67-B
An Act further to amend the Karnataka Stamp Act, 1957.
Whereas, it is expedient further to amend the Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957), for the purposes hereinafter appearing;
Be it enacted by the Karnataka Legislature in the Fiftieth year of the Republic of India, as follows.—
1. Short title and commencement.—(1) This Act may be called the Karnataka Stamp (Amendment) Act, 1999.
(2) It shall come into force at once.
2. Amendment of ## Section 2.—In Section 2 of the Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957) (hereinafter referred; to as the principal Act).—
(i) clause (a) shall be renumbered as clause “(ab)”’ thereof and before clause “(ab)” as so renumbered, the following shall be inserted, namely.—
“(a) “Assistant Commissioner of Stamps” means the Inspector of Registration Offices appointed under the Registration Act, 1908 (Central Act 16 of 1908) and includes such officer in such areas as the State Government may by notification specify.
(aa) “Association” means any association, exchange, organisation or body of individuals, whether incorporated or not, established for the purpose of regulating and controlling or conducting business of the sale or purchase of or other transaction relating to, any goods or marketable securities.”
(ii) after clause (c), the following shall be inserted, namely.—
“(ca) “Clearance List” means a list of transactions relating to contracts either maintained by an association or an individual or required to be submitted to the Clearing House of an association in accordance ‘with the rules or bye-laws of the association and shall always mean to include all the transactions pertaining to sale as well as purchase of marketable securities.”
(iii) after clause (g), the following shall be inserted, namely —
(gg) “Immovable property” includes land, buildings, rights to ways, air rights, development rights, whether transferable or not, benefits to arise out of land, and things attached to the earth, or permanently fastened to anything attached to the earth.”
(iv) in clause (j) after the words “every document”, the words “and record created or maintained in or by an electronic storage and retrieval device or media” shall be inserted.
3. Amendment of ## Section 3.—In Section 3 of the principal Act, after the first proviso, the following explanation shall be inserted, namely.—
“Explanation.—Where no proper duty has been paid on the original’ of an instrument which is chargeable with an amount indicated in the Schedule as proper duty therefor, then a copy of such instrument whether certified or not and whether a facsimile image or otherwise of the original shall be chargeable with duty of an amount which is indicated in schedule as proper duty for the-original of such instrument, and all the provisions of this chapter and Chapters IV, VI, VII and VIII of this Act shall mutatis mutandis be applicable to such copy of the original”.
4. Insertion of new ## Section 10-A.—After Section 10 of the principal Act, the following new section shall be inserted, namely.—
“10-A. Payment of stamp duty by cash in certain cases.—(1) Notwithstanding anything contained in Section 10, the stamp: duty payable on an instrument may also be paid in cash by challan in the Banking Treasury or Treasury, countersigned by an officer empowered by the State Government by notification in this behalf or by Demand Draft or by Pay order drawn on a branch of any Scheduled Bank. The officer so empowered shall, on production of such chalian and after due verification that the duty has been paid, or upon production of Demand Draft or Pay Order as the case may be, certify in such manner as may be prescribed by endorsement on the instrument, of the amount of duty so paid.
(2) An endorsement made on any instrument under sub-section (1) shall have the same effect as if the duty of an amount equal to the amount stated in the endorsement has been paid in respect thereof and such payment has been indicated on such instrument by means of stamps, in accordance with the requirements of Section 10.
(3) Nothing in this section shall apply to.—
(i) the payment of stamp duty chargeable on the instruments specified in Entry 91 of List 1 of the Seventh Schedule to the Constitution of India; and
(ii) the instruments presented after two months from the date of their execution or first execution.”
5. Amendment of ## Section 17.—In the principal Act, to Section 17 the following proviso shall be added, namely.—
“Provided that nothing in this section shall apply to an instrument in respect of which stamp duty has been paid under Section 10-A.”
6. Amendment of ## Section 30.—In Section 30 of the principal Act, after clause (c) the following clause shall be inserted, namely.—
“(cc) in the case of power of attorney by the principal.”
7. Amendment of Section 31.—In sub-section (1) of Section 31 of the principal Act, for the words and brackets “such amount (not exceeding seven rupees and fifty paise and not less than seventy paise) as the Deputy Commissioner may in each case direct”, the words “one hundred rupees” shall be substituted.
8. Amendment of ## Section 45-A.—In Section 45-A of the principal Act —
(1) for sub-section (1), the following shall be substituted, namely.—
“(1) If the registering officer appointed under the Registration Act, 1908 “(Central Act XVI of 1908) while registering any instrument of conveyance, gift, exchange, settlement, partition, dissolution of partnership, or an agreement to sell covered under sub-clause (i) of clause (e) and clause (0 of Article 5, a lease covered under item (iv) of sub-clause (a), item (ii) of sub-clause (b), item (ii) of sub-clause (c) of clause (1) of Article 30, a Power of Attorney covered under clause (ea) or (eb) of Article 41 or any conveyance under a decree or final order of any Civil Court, has reason to believe, having regard to the estimated market value published by the Committee constituted under Section 45-B, if any or otherwise, that the market value of the property which is the subject-matter of such instrument has not been truly setforth, he shall after arriving at the estimated market value, communicate the same to the parties and unless the parties pay the duty on the basis of such valuation, shall keep pending the process of registration and refer the matter along with a copy of such instrument to the Deputy Commissioner for determination of the market value of property and the proper duty payable thereon.”
(2) in sub-section (2).—
(i) after the words “determine by order”, the words “as far as may be within ninety days from the date of receipt of such reference” shall be inserted;
(ii) for the words, brackets, letters and figures “or a power of attorney covered under clause (ea) or (eb) of Article 41” a comma, words, figures and letters “or a power of attorney covered under clause (ea) or (eb) of Article 41 or every decree or final order of any Civil Court” shall be substituted.
(3) In sub-section (3), for the words, brackets, letters and figures or a power of attorney covered under clause (ea) or (eb) of Article 41” a comma, words, figures and letters “or a power of attorney covered under clause (ea) or (eb) of Article 41 or every decree or final order of any Civil Court” shall be inserted.
(4) after sub-section (5) the following provisos shall be inserted, namely.—
“Provided that no appeal shall be admitted unless the person aggrieved has deposited, in the prescribed manner, fifty per cent” of the difference in the amount of duty as determined by the Deputy Commissioner under sub-section (2) or (3):
Provided further that where after the determination of the market value by the Appellate Authority or determined again by the Deputy Commissioner on a remand of the case the stamp duty borne is found to be sufficient, the amount deposited shall be returned to the person concerned:
Provided also that where the determination of the market value by the Appellate Authority or by the Deputy Commissioner on a remand of the case, such person shall pay the deficient duty so determined along with interest at twelve per cent, per annum on the amount of the difference of stamp duty calculated from the date of execution of the document.”
9. Amendment of ## Section 46.—In Section 46 of the principal Act.—
(i) in sub-section (1), after the words “may be recovered”, the words “along with simple interest at such rate as may be specified by the State Government by notification” shall be inserted.
(ii) for sub-section (2), the following shall be substituted, namely —
“(2) All duties, penalties and other sums required to be paid under this chapter shall be a charge on the property which is the subject-matter of the instrument:
Provided that the provisions of sub-section (2) shall be deemed to apply to all cases of which are pending recovery and to proceedings under sub-section (1), which have already been initiated.
(3) Notwithstanding anything contained in the Registration Act, 1908 (Central Act XVI of 1908), a note of such charge and its extinguishments shall be made in the indices prescribed therein and shall be deemed to be a notice under the said Act.”
10. Amendment of ## Section 46-A.—In Section 46-A of the principal Act, for sub-section 4), i.e. follwing shall be substituted, namely.—
“(4) All duties payable under this section shall be recovered in accordance with provisions of Section 46.”
11. Insertion of new ## Section 46-B.—After Section 46-A of the principal Act, the following shall be inserted, name.—
“46-B. Duties, penalties, etc., to be certified.—All duties whether proper or deficit, penalties, or any other sums paid or recovered under any of the provisions of this Act shall be certified on the instruments in the manner prescribed.”
12. Amendment of ## Section 52-A.—To Section 52-A of the principal Act, the following proviso shall be added, namely.—
“Provided that the provisions of this section shall not apply to cases where refunds are claimed for loss of stamps.”
13. Insertion of new ## Section 53-A.—After Section 53 of the principal Act, the following shall be inserted, namely.—
“53-A. Revision of order passed by Deputy Commissioner or Authorised Officers.—(1) The Chief Controlling Revenue Authority may except where the matter is pending before on Appellate Authority under this Act, sua motu, within a period to five years from the date of the order passed under the Act by the Deputy Commissioner or such other officer authorised by the State Government in this behalf, call for and examine the records relating to such order or proceedings taken under this Act by the Deputy Commissioner or the authorised officer, and if after such examination it has reason to believe that the order so made or proceedings so taken is erroneous or are not in accordance with the provisions of this Act or prejudicial to the interest of the revenue, it may after giving the parties interested an opportunity of being heard, pass an order in writing confirming, modifying or setting aside such order and direct the Deputy Commissioner or the authorised officer, as the case may be to collect the difference of duty, if any payable in accordance with the provisions of Section 46:
Provided that in appropriate cases, the Chief Controlling Revenue Authority may order stay of operation of the order under revision, pending hearing of the case.
(2) The Chief Controlling Revenue Authority may for the purpose of sub-section (1), require the concerned person to produce before it the instrument and examine such instrument to determine whether any duty is chargeable or the duty is short levied or improperly levied on account of any wilful mis-statement or suppression of facts made or of contravention of any of the provisions or this Act or rules made thereunder by-such person with intent to evade payment of duty.”
14. Amendment of ## Section 59.—In sub-section (1) of Section 59 of the principal Act, for the words “be punishable with fine which may extend to five hundred rupees”, the words “be punishable with imprisonment for a term which shall not be less than one month but which may extend to six months or with fine which may extend to five thousand rupees or with both” shall be substituted.
15. Insertion of new ## Sections 59-A and 59-B.—After Section 59 of the principal Act, the following shall be inserted, namely.—
“59-A. Penalty for making false declaration in clearance list.—Any person who in a clearance list makes a declaration which is false or which he either knows or believes to be false where it results in loss or stamp duty to the State Government shall, on conviction be punished with imprisonment for a term ‘which shall not be less than one month but which may extend to six months and with fine-which may extend to five thousand rupees.
59-B. Penalty for failure to produce documents.—Any person who.—
(i) fails to produce any register, book, record, paper, application, document, instmiment or proceedings for inspection; or
(ii) prevents or obstructs the inspection, entry, search or seizure by an officer, empowered under this Act,
shall on conviction, be punishable with imprisonment for a term which shall not be less than one month but which may extend to six months or with fine which may extend to five thousand rupees or with both.”
16. Amendment of ## Section 61.—In Section 61 of the principal Act—
(i) for clause (c), the following shall be substituted, namely.—
“(c) makes any false statement or does any other act calculated to deprive the Government of any duty or penalty under this Act.”
(ii) for the words “five thousand rupees”, the words “five times the amount of the deficient duty thereof” shall be substituted.
17. Amendment of ## Section 63.—In Section 63 of the principal Act, for the words shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to five hundred rupees or with both”, the words “shall, on conviction, be punishable with imprisonment for a term which shall not be less than one month but which may extend to six months or with fine which may extend to five thousand rupees or with both” shall be substituted.
18. Substitution of ## Section 66.—For Section 66 of the principal Act, the following shall be substituted, namely.—
“66. Place of trial.—Every offence under this Act committed in respect of any instrument may be tried in any district or ‘metropolitan area in which such instrument is executed or found or where such offence is triable under the Code of Criminal Procedure, 1973.”
19. Substitution of ## Section 67.—For Section 67 of the principal Act, the following shall be substituted, namely.—
“67. Books, etc., to be open to inspection.—A Deputy Commissioner or an Assistant Commissioner or any officer not below the rank of a Sub-Registrar authorised by the Deputy Commissioner or Chief Controlling Revenue Authority in this behalf may for the purpose of this Act require every public officer or any person to produce or permit at all reasonable time inspection of such registers, books, records, papers, documents, information in electronic storage and retrieval device or medium, applications, instrument or proceedings the inspection whereof may tend to secure any duty or to prove or lead to the discovery of any fraud or omission in relation to any duty and take such notes and extracts as he may deem necessary without fee or charge and may if necessary seize them and impound them under Section 33.”
20. Substitution of ## Section 67-B.—For Section 67-B of the principal Act, the following shall be substituted, namely.—
“67-B. Power to enter premises and inspect certain documents.—(1) Where the Deputy Commissioner or an Assistant Commissioner or any officer not below the rank of a Sub-Registrar authorised by the Deputy Commissioner or Chief Controlling Revenue Authority has reason to believe that any of the instruments specified in the Schedule has not been charged at all or incorrectly charged with duty leviable under this Act or the Indian Stamp Act, 1899 insofar as it is applicable to the State of Karnataka, he shall have power to enter and search any premises where he has reason to believe that any register, book, record, paper, application, information in electronic storage and retrieval device or medium, instrument or proceedings are kept and to inspect them and to take such notes and extracts as he may deem necessary. Every person having in his custody or is maintaining such register, book, record, paper, application, instrument or proceedings shall at all reasonable times produce, or permit the Deputy Commissioner, Assistant Commissioner or such officer to inspect them and to take notes and extracts as he may deem necessary and if necessary seize and impound them under Section 33:
Provided that no residential accommodation (not being a place of business-cum-residence) shall be so entered into and searched except on the authority of a search warrant issued by a Magistrate having jurisdiction over the area, and all searches under this section shall, so far as may be made in accordance with the provisions of the Code of Criminal Procedure, 1973 (Central Act 2 of 1974).
(2) If upon such inspection, the Deputy Commissioner, Assistant Commissioner or the officer so authorised is of opinion that any instrument chargeable with duty and is not duly stamped he shall require the person liable to pay the proper duty or the amount required to make up the same and also penalty, not exceeding five times the amount of the deficient duty thereof if any leviable, and in case of default the amount of duty and penalty shall be recovered in accordance with provisions of Section 46:
Provided that before. taking any action under this sub-section, a reasonable opportunity of being heard shall be given to the person likely to be affected thereby.”