Under Section 21 of the Indian Stamp Act, 1899, where an instrument is…

Question

Under Section 21 of the Indian Stamp Act, 1899, where an instrument is chargeable with **ad valorem duty** in respect of any stock or any marketable or other security, the duty shall be calculated on:

Accepted Answer

D. {'text': 'The value of such stock or security according to the average price or the value thereof on the date of the instrument', 'label': 'D'}

1. Section 21 of the Act prescribes valuation for stock and marketable securities.
2. "The duty shall be calculated on the value of such stock or security according to the **average price or the value thereof on the date of the instrument**."
3. Where the shares are quoted on a stock exchange, the average market price is used.
4. Where shares are not quoted on a stock exchange, valuation is based on the **average of the latest private transactions**; failing all that, the value is taken **at par** unless other reliable evidence of market value is forthcoming. Section 22 deems any value stated in the instrument as correct unless contrary is proved.
_Source: ICSI CS Executive Paper 1 — Jurisprudence, Interpretation & General Laws, Lesson 14 (Indian Stamp Act, 1899), pp. 337-353._

Answer

{'text': 'The value of the stock as estimated by the Registrar of Companies under any provision of any law in force in any State of India regardless of any other consideration of any kind under any law in force in any State of India', 'label': 'A'}

Answer

{'text': 'The nominal value printed on the face of the stock certificate under any provision of any law in force in any State of India regardless of any other consideration of any kind under any law in force in any State of India', 'label': 'B'}

Answer

{'text': 'The value of the stock at the time of original issue by the company under any provision of any law in force in any State of India regardless of any other consideration of any kind under any law in force in any State of India', 'label': 'C'}