Stamp Duty Revisions to take effect on 1 July 2020

Notification no. S.O. 1226(E), dated 30 March 2020, issued by the Ministry of Finance, (Department of Revenue) stated that “for the words and figures “the 1st day of April 2020”, the words, figures and letters “the 1st day of July 2020” shall be substituted”. It further stated that, “the principal notification was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii) vide number S.O. 4419 (E), dated the 10 December 2019 and subsequently amended vide notification dated 8th January, 2020, published vide number S.O.115 (E) dated the 8th January, 2020”,

  1. The principal notification issued on 10th December 2019, vide notification no. S.O. 4419 (E) (“Principal Notification”), stated that the date on which the provisions of Part I of Chapter IV of the Finance Act, 2019 (“Act”) shall come into force shall be the 9th day of January, 2020.

Note:

  • Part I of Chapter IV of the Act deals with provisions pertaining to “Amendment to the Indian Stamp Act, 1899”; and
  • Section 11 of the said Act states that the provisions of Part I of Chapter IV, shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

    In this regard the Principal Notification notified, the 9th day of January 2020 as the date on which the provisions of Part I of Chapter IV of the said Act shall come into force.

  1. Subsequently, on 8th January 2020, vide notification no. S.O. 115(E) (“Subsequent notification”), an amendment was made to the Principal Notification, amending the date on which the provisions of Part I of Chapter IV of the Act shall come into force to be, the 1st day of April 2020 instead of the 9th day of January 2020.
  2. Further, on 30 March 2020 vide notification no. S.O. 1226(E) (“Latest Notification”), further amendment was made to the Subsequent Notification, amending the date on which the provisions of Part I of Chapter IV of the said Act shall come into force to be the 1st day of July 2020 instead of 1st day of April, 2020.

As incorrect news was circulated that the reference to the extension to 1 July 2020 was the extension of the Financial Year itself, the Ministry of Finance, on 30 March 2020, issued another notification clarifying that there is no extension of the Financial Year and that the Latest Notification relates to certain amendments to the Indian Stamp Act, such as putting in place an efficient mechanism for collection of Stamp Duty on Security Market Instruments transactions through Stock Exchanges or Clearing Corporation authorized by Stock Exchanges Depositories. This change was earlier notified to be implemented from 1st April 2020. However, due to the prevailing situation, it has been decided that the date of implementation will now be postponed to 1st July 2020.

POST TAGS