Lawstreet Journal

Stamp Duty Cannot Be Levied on Contract Security: Allahabad HC [READ ORDER]

Lawstreet Journal 12 Sep 2020 2:31am

Image courtesy: Lawstreet Journal Judiciary Stamp Duty Cannot Be Levied on Contract Security:  Allahabad HC [READ ORDER]

In an recent judgment by the Allahabad HC it was held that stamp duty cannot be levied on contract security. The current matter was relating to the demand of stamp duty on contract security which is to be deposited by a contractor. The said contractor was allotted the tender for repairing a few portions of roads in the Gujarat city of Mathura.

Hon’ble Justice Jayendra Thaker was the judge in the concerned matter. Commenting on the matter, he said, “The issue had arisen before this Court before one and a half decades but it appears that the authorities concerned have not shown that the said decision is binding on them as a similar issue came before this court before three years and the judgment was struck down as it was beyond the jurisdiction of the authorities to demand the stamp duty beyond Article 57 (b) Schedule 1 B of the Stamp Act” 

Article 57 (b) Schedule 1 B of the Stamp Act reads, “executed by way of security for the due execution of an office, or to account for money or other property received by virtue thereof or executed by a surety to secure the due performance of a contract is five rupees.”

According to the directions if the competent authorities, the petitioner was directed to pay the complete sum of security which also included the stamp duty. This total sum was to be paid in 10 days. In retortion, the petitioner pointed out that stamp duty is to be levied in accordance with… Continue Reading...

Tagged: Allahabad High Court  
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