1. introduction chargeability to stamp duty rates, by whom stamp duty is payable and who are the...
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Introduction Chargeability to Stamp Duty Rates, By whom Stamp Duty is Payable and who are the Compounding Authorities. General Exemptions Mode of Payment
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Historical Background (Brief) Effect of devolution of certain legislative powers to
Provincial Councils. Abolition of application of Stamp Duty Act 43 of 1982
w.e.f 01.05.2002
Extent of Applicability of Stamp Duty (Special Provisions) Act and the Stamp Duty Act No 43 of1982
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Stamp Duty is Charged on every specified instrument
Executed, drawn or presented in Sri Lanka
Executed outside Sri Lanka in relation to a property in Sri Lanka and presented in Sri Lanka
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Rates: Specified in the Gazette 1439/1And 1439/3 (Dated 03.04.2006)
Duty is generally payable by the party making or executing the instrument (or the party getting the facility or property)
Section 7 of the Act specifies categories of persons who are required to compound for SD payable (after the CGIR’s authorization) 5
Generally, the person issuing the instrument is authorized to compound for the duty payable.(an exception is that an Employer will be a Compounding agent even though the issuer of the receipt is an Employee).
Compounding authority should issue a Certificate to the liable person (Other than employers)
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Stamp Duty Rate
Duty Payable By
Compounding
Authority
1. Affidavit
Exemption:
Affidavit on
request by a
public officer,
or as
required
Under any
Written law
Person
Making or
executing
--25/-
Specified Specified
InstrumentInstrument
Stamp Stamp
Duty RateDuty Rate
DutyDuty
PayablePayable
ByBy
CompoundiCompoundingng
AuthorityAuthority
2. Policy of2. Policy of
InsuranceInsurance
Exemptions:Exemptions:
- Life or medical - Life or medical
- Plant, Mach. Or - Plant, Mach. Or
Equip.Equip.
(Agricultural or(Agricultural or
ConstructionConstruction
Indus)Indus)
- Motor Vehicles- Motor Vehicles
other than other than
Cars, Jeeps,Cars, Jeeps,
m/c etc. m/c etc.
-/.50-/.50
for 1000for 1000
or partor part
PolicyPolicy
HolderHolder
InsuranceInsurance
CompanyCompany
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Specified Specified
InstrumentInstrument
Stamp Stamp
Duty RateDuty Rate
DutyDuty
PayablePayable
ByBy
CompoundingCompounding
AuthorityAuthority
3.Warrant to act3.Warrant to act
as Notaryas Notary
Public Public
4.Periodic4.Periodic
License to carryLicense to carry
on trade,on trade,
business,…etc. business,…etc.
1000/-1000/-
1000/- or 10% 1000/- or 10% of License fee of License fee which ever is which ever is
lessless
The NotaryThe Notary
LicenseeLicensee
CourtCourt
(If affixing(If affixing
Stamp is Stamp is
Impractical)Impractical)
LicensingLicensing
AuthorityAuthority
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Specified Specified
InstrumentInstrument
Stamp Stamp
Duty RateDuty Rate
DutyDuty
PayablePayable
ByBy
CompoundingCompounding
AuthorityAuthority
5.Claim or 5.Claim or
demand ofdemand of
money onmoney on
usage ofusage of
creditcredit
cardscards
(total of(total of
all purchasesall purchases
and loansand loans
during theduring the
period)period)
10/- for 10/- for
1000/- or1000/- or
PartPart
CardCard
HolderHolder
ServiceService
ProviderProvider
(Credit card(Credit card
Company)Company)
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Specified Specified
InstrumentInstrument
Stamp Stamp
Duty RateDuty Rate
DutyDuty
PayablePayable
ByBy
CompounCompoundingding
AuthorityAuthority
66..Share CertificateShare Certificate
(New or addl. Issue)(New or addl. Issue)
ExemptionsExemptions
- Certificate lost etc- Certificate lost etc
- New Certificate for a - New Certificate for a
different no. But same different no. But same
value ofvalue of
Existing sharesExisting shares
- Quoted share cert- Quoted share cert
(SLT pd)(SLT pd)
- In respect of - In respect of
shares in cre.shares in cre.
Infn. BureauInfn. Bureau
5/- for 1000/- 5/- for 1000/-
Or part, ofOr part, of
Market Value Market Value on theon the
Date of Date of
Transfer orTransfer or
AssignmentAssignment
TransfereeTransferee
Or Or
AssigneeAssignee
IssuerIssuer
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Specified Specified
InstrumentInstrument
Stamp Stamp
Duty Duty RateRate
DutyDuty
PayablePayable
ByBy
CompounCompoundingding
AuthorityAuthority
7.Mortgage7.Mortgage
(For a definite sum(For a definite sum
of money and affectingof money and affecting
any property)any property)
Exemptions:Exemptions:
- given by a public- given by a public
officer (official)officer (official)
- on food crops- on food crops
- on air Craft…- on air Craft…
- On housing loan not- On housing loan not
exceeding 3M fromexceeding 3M from
specified bankspecified bank
or institution.or institution.
1/- for 1/- for
1000/- 1000/-
Or partOr part
MortgageeMortgagee
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Specified Specified
InstrumentInstrument
Stamp Stamp
Duty RateDuty Rate
DutyDuty
PayablePayable
ByBy
CompoundingCompounding
AuthorityAuthority
8.Promissory8.Promissory
NoteNote
1/- for 1/- for
1000/- or 1000/- or
PartPart
PromissorPromissor
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Specified Specified
InstrumentInstrument
Stamp Stamp
Duty RateDuty Rate
DutyDuty
PayablePayable
ByBy
CompoundingCompounding
AuthorityAuthority
9.Lease or 9.Lease or
hire (Of anyhire (Of any
Property)Property)
Exemptions:Exemptions:
- Finance Lease - Finance Lease
(excluding on (excluding on
Cars, Jeeps, M/C..)Cars, Jeeps, M/C..)
- Lease where the monthly - Lease where the monthly rent or lease not more rent or lease not more than 5000/-than 5000/-
10/- for 10/- for
1000/- or 1000/- or
Part Part
(On the (On the aggregate aggregate
Value of Value of
Lease)Lease)
LesseeLessee Lessor Lessor
(to be (to be
Regularized)Regularized)
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Specified Specified
InstrumentInstrument
Stamp Stamp
Duty RateDuty Rate
DutyDuty
PayablePayable
ByBy
CompoundingCompounding
AuthorityAuthority
10. Receipt or 10. Receipt or
DischargeDischarge
(for money (for money
or property)or property)Exemptions:Exemptions:-Less than Less than
1000/-1000/--Deposit or Deposit or
withdrawal in awithdrawal in a
bank or financialbank or financial
InstitutionInstitution
-Immediate -Immediate
settlement onsettlement on
goods or servicesgoods or services
1/- for 1/- for 1000/-1000/-
Or part-Or part-
Limited to Limited to
Rs.50Rs.50
Person who is Person who is acknowledginacknowledging receipt or g receipt or giving the giving the dischargedischarge
Issuer (with Issuer (with
Approval)Approval)
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Specified Specified
InstrumentInstrument
Stamp Stamp
Duty RateDuty Rate
DutyDuty
PayablePayable
ByBy
CompoundingCompounding
AuthorityAuthority
ReceiptsReceipts
Given forGiven for
RemunerationRemuneration
Exemptions-Exemptions-
Not Not
ExceedingExceeding
25,00025,000
--Between;Between;
25,000 to 40,000 25/-25,000 to 40,000 25/-
40,000 to 50,000 40/-40,000 to 50,000 40/-
50,000 or Over 50/-50,000 or Over 50/-
EmployeeEmployee EmployerEmployer
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Specified Specified
InstrumentInstrument
Stamp Stamp
Duty RateDuty Rate
DutyDuty
PayablePayable
ByBy
CompoundCompoundinging
AuthorityAuthority
11. Any other 11. Any other
(as may be(as may be
specified byspecified by
the minister)the minister)
ExemptExempt
Instruments executed by, or on behalf of, or in favour of a co-operative society Instruments executed by or, on behalf of
the Government of any Country (in respect of which an order is in force)
Any instrument in relation to which the Government would be liable to pay SD (not for this exemption)
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Instruments in relation to supply of any service to Diplomatic Missions etc.
(Where the Diplomatic privilege Act is applicable and reciprocal benefits are available)
Instruments executed under farmers pension and Social Security Benefit Scheme
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Affixing stamps Compounding ( to be remitted on
specified dates) Payment to bank by (cash or draft) and
CGIRs endorsement
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For specific applications
please consult us.
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