FAQs on Indian Stamp Act, 1899 Amendments and Rules made thereunder
1. What is the need for bringing amendments in the Indian Stamp Act, 1899? Answer: S ecurities market transactions is the main reason for such amendments. There is a multiple rates collection of stamp duty on securities market transactions for the same instrument. It results in jurisdictional disputes and multiple incidences of duty, thereby raising the transaction costs in the securities market and hurting capital formation. 2. What mechanism is created through the amendments to the Indian Stamp Act, 1899? Answer: A mechanism for appropriate sharing the stamp duty with relevant State Government based on State of domicile of the buying client has also been included. In the extant scenario, stamp duty was payable by both seller and buyer whereas in the new system it is levied only on one side (payable either by the buyer or by the seller but not by both, except in case of certain instrument of exchange where the stamp duty shall be borne by both parties in equal proportion). Thro
