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CS Professional · Corporate Restructuring, Valuation and Insolvency · Taxation and Stamp Duty Aspects of Corporate Restructuring

Under the Indian Stamp Act, 1899 (section 51), a company has printed instrument forms on stamped paper that it no longer needs because its business plans changed after restructuring. Which statement is correct?

The Chief Controlling Revenue-authority, or an empowered Collector, may make an allowance without limit of time for printed forms on stamped paper that are no longer required by a company, provided it is satisfied that the duty on those papers was duly paid.

  1. ANo allowance can ever be made once stamped paper is used for printed forms
  2. BThe Chief Controlling Revenue-authority may make an allowance without limit of time, if satisfied that the duty on the stamped papers was duly paidCorrect
  3. CAllowance is available only within six months of purchase
  4. DAllowance is available only to banks and not to incorporated companies

Explanation

Section 51 lets the Chief Controlling Revenue-authority, or the Collector if empowered, allow for stamped papers used for printed forms no longer required by a banker, company or body corporate, without limit of time, provided duty was duly paid. Hence the time limit and bank-only options are wrong.

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