Extracts from Section 3 and Entry No. 5 in Schedule I to the Indian Stamp Act, 1899 are reproduced below for ready reference.
(A) Entry No. 5 in Schedule I (Stamp Duty on Instruments) to the Indian Stamp Act, 1899 read as follows.
EXEMPTIONS: Agreement or memorandum of agreement—(a) for or relating to the SALE OF GOODS or MERCHANDISE EXCLUSIVELY not being a Note or Memorandum chargeable under No. 43”; (capitals mine)
It is evident that PURCHASE ORDER, being an Agreement for or relating to the SALE OF GOODS or MERCHANDISE EXCLUSIVELY, is exempt.
(B) Indian Stamp Act, 1899-Section 3-INSTRUMENTS CHARGEABLE WITH DUTY read as follows—
(a) EVERY INSTRUMENT mentioned in that Schedule which, not having been previously executed by any person, is EXECUTED in
(i) It is evident that EVERY INSTRUMENT shall be chargeable with duty, which is EXECUTED in
(ii) The terms & conditions on “Airline ticket” or “Courier consignment receipt” etc are accepted orally by the buyer, rather there is IMPLIED ACCEPTANCE.
(iii) Therefore, “Airline ticket” or “Courier consignment receipt” etc are not EXECUTED INSTRUMENTS by both the parties, hence not chargeable with duty.
(iv) They all are agreements, however NOT CHARGEABLE WITH DUTY, and consequently, absence of stamping does not vitiate the terms and conditions at the time of dispute.(END)
Note: the views expressed are my personal and a view point only.
Narendra Sharma, Consultant (Legal)
Tags :Corporate Law