Under Section 20 of the Indian Stamp Act, 1899, where an instrument is…

Question

Under Section 20 of the Indian Stamp Act, 1899, where an instrument is chargeable with **ad valorem duty** in respect of any money expressed in any currency other than that of India, the duty shall be calculated:

Accepted Answer

C. {'text': 'On the value of such money in the currency of India, according to the current rate of exchange on the date of the instrument', 'label': 'C'}

1. Section 20 of the Act prescribes the rule for foreign-currency instruments.
2. Where the instrument is chargeable with ad valorem duty in respect of money expressed in **foreign currency**, "such duty shall be calculated on the value of such money **in the currency of India**, according to the **current rate of exchange on the date of the instrument**".
3. The Central Government notifies the rate from time to time in the Official Gazette.
4. The other options invent averaging or post-execution rates that the Act does not adopt.
_Source: ICSI CS Executive Paper 1 — Jurisprudence, Interpretation & General Laws, Lesson 14 (Indian Stamp Act, 1899), pp. 337-353._

Answer

{'text': 'On the value of such money in the foreign currency at the foreign currency rates prevailing on the date of execution under any provision of any law in force in any State of India regardless of any other consideration of any kind', 'label': 'A'}

Answer

{'text': 'On the value of such money in the currency of India, according to the average exchange rate over the preceding six months under any provision of any law in force in any State of India regardless of any other consideration of any kind', 'label': 'B'}

Answer

{'text': 'On the value of such money in the foreign currency at the foreign currency rates prevailing on the date of registration under any provision of any law in force in any State of India regardless of any other consideration of any kind', 'label': 'D'}