Model Office report for collection of stamp duty and penalty

 

Office Note:      -  -2025

It is submitted that the document dated ______, styled as an “Agreement” between Sri "X" and Sri "Y" records a financial obligation of ₹21,00,000/- secured by issuance of two cheques. The recitals create an enforceable liability and therefore the document falls within the definition of “Bond” under Section 2(5)(b) and is chargeable under Article 13 of Schedule I-A.

Since the document is executed on plain paper without any stamp, the duty and penalty are computed as follows:

1. Value Secured under Document: ₹21,00,000/-
2. Rate of Duty under Article 13:
• Where the amount does not exceed ₹1,000 → ₹3 for every ₹100 or part thereof.
• Where it exceeds ₹1,000 → ₹30 for the first ₹1,000 + ₹15 for every ₹500 or part thereof in excess of ₹1,000.
3. Duty on first ₹1,000 = ₹30
4. Balance amount = ₹21,00,000 – ₹1,000 = ₹20,99,000
5. Number of units of ₹500 in ₹20,99,000 =

20,99,000/500=4198 units

Duty @ ₹15 per ₹500 unit =

4198×15=₹62,970 

6. Total Proper Duty = Duty on first ₹1,000 (₹30) + Duty on balance (₹62,970) = ₹63,000/-

Deficit and Penalty

• Duty actually paid: Nil (document executed on plain paper).
• Deficit Duty: ₹63,000/-
• Penalty under Section 35: Up to 10 times the deficit duty = ₹63,000 × 10 = ₹6,30,00/-

• Total stamp duty and penalty to be collected= ₹6,93,000/-

Therefore permission may be accorded to collect the above amount.

S.F.O

Office Note:8-12-2014

          It is submitted that, the Contractor and the Project Engineer, Atmakur have entered into an agreement dated:26-03-1999 for laying pipe line under Kondadoddi lift irrigation scheme at Makthal mandal of Mahabubnagar District filed in O.S.No.57/2010 on the file of Prl.District Court, Mahabubnagar. The agreement was entered into on acceptance of tender. The said document is an agreement within the meaning of Art. 6 of Sch. I-A of the Indian Stamp Act and it is ought to have executed on a stamp of Rs.100/- U/Art. 6(A)(iv) as the value of the contract is exceeding Rs.50,000/-. The agreement executed on an unstamped paper, hence the document is chargeable with the stamp duty and penalty as under.

1.   Required Stamp duty U/Art. 6(A)(iv)                 -- Rs.200/-

2.   Duty paid if any (Document                                Nil

executed on unstamped paper)

 

3.   Ten time penalty                                               --Rs.2000/-

Stamp duty and penalty payable        --Rs.2200/-         

 

It may be ordered directing the holder of the document to remit the duty and penalty of Rs.2200/-.

S.F.O