Section 3 of the Indian Stamp Act, 1899 is the **charging section**. I…

Question

Section 3 of the Indian Stamp Act, 1899 is the **charging section**. It provides that the following instruments shall be chargeable with stamp duty. Which is NOT one of the three categories under Section 3?

Accepted Answer

D. {'text': 'Every instrument executed only by the Central Government in favour of any private person at any time after the commencement of the Act', 'label': 'D'}

1. Section 3 of the Act charges three categories of instruments to stamp duty:
   (i) every instrument mentioned in the Schedule, not previously executed, executed in India on or after 1 July 1899;
   (ii) every BoE payable otherwise than on demand or promissory note drawn/made outside India and accepted/paid/presented/endorsed/transferred in India;
   (iii) every other Schedule instrument executed outside India relating to property in India and received in India.
2. Section 3 also provides that **NO duty is chargeable on instruments executed by/on behalf of/in favour of the Government** where, but for this, the Government would have been liable.
3. Hence option (A) is OUTSIDE the charging section.
_Source: ICSI CS Executive Paper 1 — Jurisprudence, Interpretation & General Laws, Lesson 14 (Indian Stamp Act, 1899), pp. 337-353._

Answer

{'text': 'Every instrument (other than a BoE or promissory note in the Schedule), executed out of India on or after that day and relating to property situate or matter done in India and received in India', 'label': 'A'}

Answer

{'text': 'Every instrument mentioned in the Schedule, not previously executed, which is executed in India on or after the first day of July 1899', 'label': 'B'}

Answer

{'text': 'Every bill of exchange payable otherwise than on demand or promissory note drawn or made out of India and accepted, paid, presented for acceptance, endorsed or transferred in India', 'label': 'C'}