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CS Professional · Drafting, Pleadings and Appearances · Laws relating to Drafting and Conveyancing

Meera Traders buys a warehouse from Kapoor Estates. To complete the sale, the parties execute a conveyance deed and also a supplementary deed recording some additional terms. Under the Indian Stamp Act, 1899 (central text, without state amendments), how is stamp duty charged on these instruments?

Only the principal instrument carries the full Schedule I conveyance duty. Every other instrument used to complete the same sale, mortgage or settlement is charged just one rupee in place of its scheduled duty, so the transaction is not taxed twice.

  1. AOnly the principal instrument bears the Schedule I conveyance duty; each other instrument bears a duty of one rupeeCorrect
  2. BBoth instruments bear the full Schedule I conveyance duty separately
  3. COnly the instrument executed first bears duty; the other is exempt entirely
  4. DEach instrument bears one rupee, and the principal instrument bears nothing

Explanation

Where several instruments are employed to complete a sale, mortgage or settlement, only the principal instrument is chargeable with the Schedule I duty for the conveyance. Each other instrument is chargeable with one rupee instead of its own scheduled duty. Charging full duty on both ignores this rule.

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