Article. Highlights of the Stamp Act (Amendment) Bill Prachi Narayan Date: February 23, 2014

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1 Article Highlights of the Stamp Act (Amendment) Bill 2014 Prachi Narayan Date: February 23, 2014 Check at: for more write ups. Copyright: This write up is the property of Vinod Kothari & Company and no part of it can be copied, reproduced or distributed in any manner. Disclaimer: This write up is intended to initiate academic debate on a pertinent question. It is not intended to be a professional advice and should not be relied upon for real life facts.

2 A commercial or business transaction to be enforceable in a court of law has to be compulsorily registered and stamped. The Indian Stamp Act, 1899 prescribes the rates for the stamping of documents and instruments. Stamp duty means a tax payable on certain documents and instruments specified by statute; in layman terms it is a kind of tax paid on any transaction based on exchange of documents or execution of instruments. The Department of Revenue, Ministry of Finance has released the draft Stamp Act Amendment Bill ( Bill ) that proposes amendments/changes to the age-old provisions Indian Stamp Act, 1899 ( Principal Act ). The Bill has been posted on the ministry s website for public review and comments. There have been numerous changes proposed which if enacted would literally replace the old enactment in its entirety. This article is an attempt to summarize and synopsize the key highlights of the proposed changes in the Bill. Proposed Changes in a Nutshell Definitions: The Bill seeks to modify definitions of many terms that have become archaic in order to bring them in line and at par with definitions provided under other acts and laws. It also seeks to bring in new definitions for certain terms that were not used when the Act was introduced. Definitions of acknowledgement of debt, affidavit, agreement, association banker, bonds, conveyance, instrument, marketable security, etc. have been modified and expanded. Certain definitions for terms like clearance list, debentures, market value, movable property, securities have been included. Some of the key definitions as proposed in the Bill has been provided and enumerated as Annexure A. Scope of Conveyance widened: One of the key amendments that the Bill seeks to bring in is, inter-alia, to amplify the scope of application of the Principal Act by unequivocally levying stamp duty on every order of the Court/Tribunal sanctioning a scheme of amalgamation or reconstruction of companies, by which property is transferred inter vivos. The applicability of stamp duty on orders of courts resulting in transfer of immovable property had been a vexed issue, as the law lacked uniformity in India and depended largely upon the stamp law provisions of the concerned states. Even after the Supreme Court s decision in the case of Hindustan Lever, wherein it was held that a scheme is an instrument subject to stamp duty, different states have been adopting differing stances 1. In order to attain a quietus over the issue and bring to rest the suppositions surrounding the stamping of court orders, the definition of the term conveyance is now proposed to include within its ambit every order of High Court/Tribunal under section 394 of the Companies Act, 1956 sanctioning the scheme of amalgamation or reconstruction of companies. 1

3 There was also a circular issued in 1937 vide which exemption was granted on payment of stamp duty when there is an amalgamation/merger between holding and subsidiary company. In case of Delhi Towers Ltd. v. GNCT of Delhi 2, the High Court of Delhi ruled that In view of the aforesaid remission granted, no stamp duty would be leviable in any case to the transfer of assets between the transferor and the transferee companies when the transferor company is a 100% subsidiary of the transferee company which is the parent company. However, no such transaction under the Bill is now exempt in terms of the newly proposed amendments dealing with the amendment of the definition of 'conveyance'. Similarly, the proposed amendments still remain silent with respect to situations/circumstances were a company may have assets in more than one state. In furtherance, the term conveyance will also include every other instrument by which in property movable or immovable is transferred or by which any estate or interest is created or vested in any person and which is not specifically provided for/in Part B of the Schedule to the Bill. Any transfer of property by a co-owner to another co-owner, chargeable with the duty of conveyance unless it is an instrument of partition. The proposed amendments, however, do to provide any guidance as to the method of computing the market value of such a property. Likewise, 'lease' is proposed to be re-defined to include in its ambit an agreement to lease, the decree and final order of a court in respect of the lease and leases of movable property. For the purposes of the said Bill, movable property has now been defined to include property of every other description, except immovable property. The proposed amendments are thus of fundamental importance to any transaction of amalgamation, merger or demerger, as once enacted, the order of the courts approving the schemes of restructuring of companies will have to be stamped. This in turn would make corporate restructuring by the intervention of the courts an expensive and pricy proposition. Empowerment of Associations/Depositories to collect stamp duty on Securities Transaction: The Bill seeks to empower associations/depositories to collect the stamp duty for transactions pertaining to securities. Till now, the method of collection of stamp duty various from states to states. The said amendment is proposed to centralize the stamp duty collection and also to simplify the rate structure. The states will have the power to determine the stamp duty rate and authorize exchanges to collect duty on their behalf. Associations and depositories shall on regular basis transfer the funds to the state governments in a manner as prescribed by the state government. Similarly, in case of issue of securities leading to creation or change in records of a depository, the depository shall collect the stamp duty on allotment list from the issuer of the security and thereafter transfer it to the concerned state. However, any note, memorandum or document 2

4 associated with the transaction or created as result of sale of securities shall not be liable to any stamp duty. Introduction of e-stamping: The Bill proposes to bring in electronic payment of stamp duty in addition to the impressed and adhesive stamps. The state governments are empowered under the Bill to make rules in respect of such electronic payments. Payment of duty when instruments are executed in one state and received in another: There often arose situations where an instrument or conveyance relating to a property was executed in a place/state which was different from the place/state where the property was situated. This often led to confusion regarding the applicability of rates of stamp duty. The Bill seeks to redress the confusion by introducing provisions for transactions or property executed/situated in one state and instruments relating to such are executed in another state. Under such circumstances, the amount of duty chargeable shall be the difference in amount of duty chargeable on it in that State and the amount of duty, if any, already paid under any other law upon execution of such instrument. Several Instruments used in a single transaction: The Bill introduces a new provision with respect to transactions that constitute of several instruments or a particular transaction is completed by way of execution of several instruments. The Bill provides that in such a situation the principal instrument shall be chargeable with the duty specified for it in the Schedule and each of the other instruments shall be chargeable with a duty of rupees one hundred instead of the duty specified for it in that Schedule. The Bill further leaves it to the discretion of the parties to the transaction to determine for themselves as to which of the instruments so involved shall be deemed to be the principal instrument with a condition that the duty chargeable on such an instrument shall be the highest duty, which would be chargeable in respect of any of the other instruments so involved. However in the case of issue and sale of securities, the instrument on which the stamp duty is to be collected shall be the principal instrument and no duty shall be charged on any other instruments related to such transaction. Issue of securities in demat-form: Any issue of securities to one or more depositories, the issuer of such securities shall be chargeable with duty on total amount of the securities issued. However, any certificate of security issued under section 14(3) of the Depository Act 1996(beneficial owner opting out of the depository) which was chargeable with duty under the Principal Act is done away with under the Bill. The Bill further provides that the transfer of registered ownership of securities from a person to a depository or from a depository to a beneficial owner is not chargeable to stamp duty. However, the transfer of beneficial ownership of securities dealt by a depository and transfer of beneficial ownership of Mutual Fund units, which were earlier not chargeable to duty under the Principal Act, have now been deleted under the proposed Bill.

5 Instruments relating to corporatisation and demutualisation schemes: The Bill provides that instruments executed under a scheme for corporatization or demutualisation, or both, of a recognized stock exchange and recognized commodity exchange; or any instrument relating to, transfer of any property, business, asset, whether movable or immovable, contract, right, liability and obligation, in connection with, the corporatisation or demutualization scheme, as approved by the Forward Market Commission are not liable to duty. It further amends the definitions of corporatization and demutualization as provided under the Principal Act to the definitions as provided in Annexure A. Assignment of loans and advances, transfer of assignment, issue of security receipts or asset backed securities: The proposed Bill for the first time introduces provisions relating to assignment of loans and advances. It provides that the following instruments relating to assignment of loans and advances shall not be chargeable to stamp duty: i. any assignment by any bank or financial institution of its financial assets, with or without the benefit of underlying securities, to any securitization company or reconstruction company registered with the Reserve Bank of India ii. any assignment of loans or advances by the National Bank for Agriculture and Rural Development; iii. any instrument relating to transfer of rights and interests in, or assignment of, loans or advances by the National Housing Bank under section 17 of the National Housing Bank Act,1987; iv. any instrument relating to acquisition by the National Housing Bank of the rights and interests of any institution by transfer or assignment of, loans or advances recoverable by such institution pursuant to the provisions contained in section 18 of the National Housing Bank Act, 1987; v. security receipts issued by a securitization company or reconstruction company registered with the Reserve Bank of India under section 7 of the Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002; vi. any security (being property mortgaged or assigned as security) issued by the National Housing Bank or National Bank for Agriculture and Rural Development under Fixation of Market Value: The Bill also introduces definition of market value and provides that the duty payable on any instrument relating to a transaction in immovable property shall be on the basis of the market value of such immovable property as fixed and periodically revised by State Government where such immovable property is situated. Payment of duty: Section 10 of the Principal Act has been amended to include any instrument. The proposed Bill has made provisions for stamping using franking machine and electronic stamping. In case of stamping instruments with franking machine or other

6 machine, the rules made by state governments shall regulate the type of ink, the security features and the design which may be used whereas in case of electronic stamping, the rules shall regulate the security features and the design which may be used. Examination and Impounding of Instruments: The Bill seeks to amend the provision so as to exclude a police officer or any officer investigating a criminal offence from impounding an instrument chargeable with stamp duty. The power of impounding still vests with a person/authority who has been authorized to receive evidence under law or by consent of parties. Further, the proposed Bill makes impounding possible for instruments even though the instrument is not valid in law. Insufficiently stamped instruments inadmissible as evidence: Insufficiently stamped instruments are inadmissible as evidence in courts of law or before any public authority and is not to be acted upon, registered or authenticated by any public officer. However, such an instrument may be admitted on payment of duty along with a penalty of 2% on deficient portion of duty for every month from date of execution of instrument or Rs 100 whichever is more. Powers of the Collector under the Bill: The Bill seeks to enhance the powers of the Collector substantially. It empowers the Collector to call for examination any instrument for assessing the market value of any property that forms the subject matter of the instrument and duty thereof. It also authorizes the Collector so appointed to re-assess the leases pertaining to mines and mining activities with respect to amounts of royalty or share of produce and the duty so charged and consequently take further steps in accordance with the provisions so laid down. The Bill also vests with the Collector powers as vested in a civil court under Code of Civil Procedure 1908 for trying a suit, or receiving evidences etc. Appeal, if any, from the orders of the Collector shall be preferred to Chief Controlling Revenue-Authority within a period of 60 days from the date of the communication of such order. Recovery of duty and penalties: This Bill seeks to introduce provisions relating to recovery of duty and penalties. It empowers the Collector to recover duties and penalties of stamp through distress and sale of movable property if the sums due are less than 5 lakhs. For sums more than 5 lakhs or where recovery through distress and sale not possible the Collector may recover arrears by such other process for the time being in force. Rule making power of State Governments enhanced: The State Governments under the Principal Act were authorized to make rules to carry out the purposes of the Act and prescribe fines not exceeding five hundred rupees. They were empowered to make rules with respect to (a) the supply and sale of stamps and stamped papers, (b) the persons by whom alone such sale is to be conducted, and (c) the duties and remuneration of such persons The State Governments now under the Bill are not authorized to make rules and prescribe fine. The Bill seeks to widen the ambit of rule making of the State Governments

7 considerably, thereby empowering the State Governments to make rules with respect to the: i. manner of transfer of stamp duty collected by an association or depository; ii. manner of collecting and transferring of stamp duty when the seller is from outside India; iii. manner of collecting and transferring of stamp duty when the purchaser is from outside India; iv. manner of submitting clearance list to the State Government v. manner of determining the market value of immovable property by the Collector; vi. manner of holding enquiry under sub-section (2) of section 47A; vii. any other matter in respect of which the Collector shall have the power of civil court; viii. manner of preferring appeal under sub- section (5) of section 47A; ix. time and the procedure for disposing of appeals under sub-section (6) of section 47A; x. supply, sale and use of stamps and stamped papers; xi. persons by whom alone the sale of stamps is to be made; xii. duties and remuneration of vendor of stamps; Offences and Penalty under the Bill Penalty for executing instruments not duly stamped: The Bill seeks to enhance the penalty for executing instruments that are not duly stamped. Any person who executes or signs excluding the witnesses, any instrument that is chargeable with duty, without it being duly stamped, shall be punishable with fine, which may extend to ten thousand rupees. It further provides that where share warrants are issued without being duly stamped, the company issuing the same, and also every person who, at the time of such issuance, is the managing director or secretary or other principal officer of the company, shall be punishable with fine which may extend to one lakh rupees. Penalty relating to clearance list: The Bill introduces a new penal provision relating to default in submission of clearance list with state governments. It provides that any failure of any person or association to submit the duly stamped clearance list to the State Government within a fortnight of the end of the month or in accordance with the provisions section 10A(7) or makes a declaration which is false, shall for every such offence be punishable with fine which may extend to one lakh rupees. Penalty for failure to provide required information, records: The Bill introduces a new penal provision relating to failure in providing the requisite information. It provides that any failure to produce information, registers, books, records (electronic or otherwise), papers, documents or proceedings; or allow entry of the authorized officer in premises where such registers, books, records (electronic or otherwise), papers, documents or

8 proceedings are kept to inspect or to take notes and extracts thereof, shall for every such offence, be punishable with fine which may extend to one lakh rupees. Penalty for omission to comply with provisions of section 27: The Bill seeks to enhance the punishment provided for non- compliance with section 27 the Principal Act. It seeks to impose a fine of fifty thousand rupees or twenty percent of the duty evaded, whichever is more, in case where the amount of duty evaded does not exceed ten lakh and for cases where the amount of duty evaded is ten lakh rupees or more, with an imprisonment for a term which may extend to one year, or fine which shall not be less than fifty thousand rupees or both. Offences by Companies: The Bill introduces a completely new penal provision for offences committed by companies. Every person who, at the time the offence was committed, was directly in charge of, and was responsible to the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. However, a person shall not be liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. Cognizance of offences: A Metropolitan Magistrate or, a Judicial Magistrate of the first class shall try all offences under the Principal Act. Conclusion The proposed amendments are an endeavor to sync in the Stamp Act with the moving times so as to re-solve various irregularities and inconsistencies thereby popping up and faced by various courts, authorities and people at large. It is a sincere attempt to help interpret the intent of the legislature and bring in more clarity to the present stamp duty regimen. One of the crucial reasons to table the proposed amendments apart from seeking clarity is also to increase the revenue for the state. The attempt to revamp the stamp duty regime is credible, but simultaneously, the proposed stamp duty implications might discourage the corporates and compel them to reconsider and evaluate their decisions before opting for any court based restructuring schemes.

9 Term Acknowledgement of a debt Affidavit Agreement Association Annexure A- Proposed Definitions Definition means any instrument written or signed by or on behalf of a debtor in order to supply evidence of such debt in any book (other than a banker's pass book) or on a separate piece of paper and left in the creditor's possession; means a statement in writing, purporting to be statement of facts, signed by the person making it and affirmed by him on oath and includes affirmation or declaration in the case of persons by law allowed to affirm or declare instead of swearing; in relation to the deposit of title deeds or pawn or pledge or hypothecation, means any instrument or a written document evidencing agreement relating toa) the deposit of title deeds or of any other instrument constituting or being the evidence of title to any property (other than a marketable security); or b) the pawn or pledge or hypothecation of movable property, where such agreement is made or written either before, or at the time when, or after, the deposit of title deeds or pawn or pledge or hypothecation is effected; and such deposit of title deeds or pawn or pledge or hypothecation has been made by way of security for repayment of money advanced or to be advanced by way of loan or an existing or future debt; means a body of individuals, or exchange or depository or organisation, whether incorporated or not, established for the purpose of regulating and controlling the business of the sale or purchase of any goods or marketable securities or any other transaction relating thereto including a contract for difference; Banker includes- (a) a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949;(b) a co-operative bank as defined in clause (cci) of section 56 of the Banking Regulation Act, 1949;(c) the State Bank of India constituted under section 3 of the State Bank of India Act, 1955, any of its subsidiary banks as defined in clause (k) of section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 and any of the corresponding new banks constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 and the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, as the case may be; Conveyance includes- (a) a conveyance on sale; (b) every decree or final order of a civil court; (c) every final order of a revenue authority; (d) every order made by the High Court under section 394 of the Companies Act, 1956 in respect of the amalgamation or

10 Corporatization Demutualization Debenture Forward Market Commission Instrument Lease Marketable Security Market Value reconstruction of companies; Provided that on or after the constitution of the National Company Law Tribunal under section 10FB of the said Companies Act, the reference to High Court under this clause shall be construed as reference to such Tribunal; and (e) every other instrument by which property, movable or immovable is transferred to, or any estate or interest therein is created or vested in, any other person, and which is not specifically provided for by Part-B of the Schedule; Explanation. -For the purposes of this clause, any instrument, other than an instrument of partition, whereby, a co-owner of any property transfers his interest to another co-owner, shall be construed as a conveyance; means the succession of a recognized association, being a body of individuals or a society registered under the Societies Registration Act, 1860, by another recognized association, being a company incorporated for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in goods or commodity derivatives carried on by such individuals or society; means the segregation of ownership and management from the trading rights of the members of a recognized association in accordance with a scheme approved by the Forward Markets Commission; includes debenture stock and bonds whether constituting a charge on the assets of the company or not; means the Forward Market Commission established under section 3 of the Forward Contracts (Regulation) Act, 1952; Means every document, electronic or otherwise, by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded; and any other document mentioned in the Schedule means a lease of immovable property or movable property or both, and includes (a) a patta;. (b) a Kabuliyat or other undertaking in writing, not being a counterpart of a lease, to cultivate, occupy, or pay or deliver rent for, immovable property; (c) any instrument by which tolls of any description are let;(d) any writing on an application for a lease intended to signify that the application is granted; (e) a decree or final order of any civil court or revenue court in respect of a lease; and (f) licence deed or rent agreement. means a security of such a description as to be capable of being sold in any association in relation to any property which is the subject matter of an instrument, means the price or consideration as stated in that instrument, or the price which such property would fetch or would have fetched had it been sold in the open market on the date of

11 Securities execution of such instrument, whichever is higher; shall have the same meaning as assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956;

12 Annexure B- Some of the Proposed Stamp Duty Rates Article No Description of Instrument Stamp Duty PART- A 1 Debenture % of the (a) allotment list in the case of issue of debenture in face value of demat form; debenture. (b) allotment letter in the case of issue of debenture in non-demat form; (c) clearance list in the case of sale of debenture through association; (d) delivery instruction slip in the case of off-market sale of demat debenture; (e) transfer deed in the case of sale of non-demat debenture. 2 TRANSFER OF SHARES (a) clearance list in case of sale of share through an association; (b) delivery instruction slip in case of off market sale of demated share; (c) transfer deed in case of sale of non-demat share. PART- B 1 Agreement or Memorandum of Agreement (a) relating to the sale of bill of exchange; (b) relating to the sale of a Government security or share in an incorporated company or body corporate; % of the face value of debenture. (a) 0.01% of the amount. (b) 0.02% of the amount. (c) if relating to the sale of the property; (c) 5% of the market value of the property. (d) if not otherwise provided for Exemptions Agreement or memorandum of an agreement (a) for or relating to the sale of goods or merchandise exclusively, not being a Note or Memorandum chargeable under Article 36 of Part B; (b) made in the form of tenders to the (d) One rupees. hundred

13 Central Government for or relating to any loan. 2 Agreement relating to (a) Deposit of title deeds, pawn, pledge or hypothecation; (b) Hire purchase, development of property, construction, concession and works contract; Exemptions (a) 0.1% of the amount secured rounded off to next ten rupees. (b) 0.01% of the (a) Letter of hypothecation accompanying a bill of exchange; (b) Instrument of pawn or pledge of agriculture produce if unattested. 3 Articles of Association of a Company (a) where the company has no share capital; (b) where the company has nominal share capital or increased share capital 4 Clearance list related to sale of securities through an association. 5 Conveyance, not being a transfer of securities. Provided that (a) when an instrument relates to an assignment of a debt, (b) where an agreement to sell an immovable property is stamped with ad valorem duty required for a conveyance and a sale deed in pursuance of such agreement is subsequently executed (a) One thousand rupees. (b) 0.1% of such nominal increased share capital subject to a minimum of one thousand rupees 0.005% of the value of the making up price or contract price. 5% of the market value of the property (a) % of the amount of the debt assigned; (b) the duty payable under this article less the duty already under item (c) of Article 5 of Part

14 B, subject to a minimum of one hundred rupees; (c) where a power of attorney authorising the agent to sell immovable property is stamped with ad valorem duty required for a conveyance and a sale deed is executed in pursuance of power of attorney between the executant of attorney and the person in whose favour it is executed (d) where a mortgage deed is stamped with ad valorem duty required for a mortgage under Article 33 of Part B and a court decree in pursuance of a suit filed against the mortgaged property is executed Explanation For the purposes of this Article, where the possession of any immovable property is transferred or agreed to be transferred to the purchaser before the execution, or at the time of execution, or after the execution, of an agreement to sell immovable property, then such agreement shall be deemed to be a conveyance and the stamp duty shall be levied thereon accordingly: Provided that the provisions of section 47A shall apply mutatis mutandis to such agreement as they apply to a conveyance under that section. 6 Issue of security other than debenture allotment list in case of demat issue of security and allotment letter in case of non-demat issue 7 Lease, including an under lease or sub-lease and any agreement to let or sub-let or any renewal of lease a) where, the rent is fixed, no premium is paid or delivered and such lease purports to be: i. for a term less than 1 year; (c) the duty payable under this article less the duty already under item (c) or subitem (ii) of item (d) of Article 39 of Part B, subject to a minimum of one hundred rupees; (d) the duty payable under this article less the duty already under Article 33 of Part B on the mortgage deed, subject to a minimum of one hundred rupees % of the value of the transaction. a) i. 1% for the whole amount payable or deliverable

15 under such lease. ii. for a term of 1 year but not exceeding 10 years; ii. 2% for the amount of average annual rent reserved. iii. for a term of 10 years but not exceeding 30 years; iv. for a period in excess of 30 years or in perpetuity or does not purport to be for a definite period; iii. iv. The same duty as a conveyance (Article No.18 of Part B) for a value equal to four times the amount or value of average annual rent received The same duty as a conveyance (Article No.18 of Part B) for a value equal to ten times the amount or advance as set forth in the lease b) where lease is granted for a fine or premium or money advanced or to be advanced and where no rent is fixed; c) where lease is granted for a fine or premium or money advanced or to be advanced in addition to rent fixed. Exemption Lease executed in the case of a cultivator and for the purposes of cultivation (including a lease of trees for the production of food or drink) without b) The same duty as a conveyance (Article No.18 of Part B) for a value equal to the amount or value of such fine or premium or advance as set forth in the lease. c) The same duty as conveyance (Article No.18 of Part B) for a value equal to the amount or value of such fine or premium or advance as set forth in the lease, in addition to the duty which

16 the payment or delivery of any fine or premium, when a definite term is expressed and such term does not exceed one year, or when the average annual rent reserved does not exceed one thousand rupees: Provided that- (a) when an instrument of agreement to lease is stamped with the ad valorem stamp required for a lease, and a lease in pursuance of such agreement is subsequently executed; (b) where a decree or final order of any Civil Court in respect of a lease is stamped with ad valorem duty required for a lease and an instrument of lease is subsequently executed; (c) an instrument of lease including an under lease or sub-lease and any agreement to let or sub-let or any renewal of lease in respect of movable property Memorandum of Association of a Company - (a) if accompanied by articles of association under section 26 of the Companies Act 1956; (b) If not so accompanied Sale of securities other than that of Debenture or share (a) delivery instruction slip in the case of off-market transaction of demated security; (b) clearance list in the case of demated security through an association; would have been payable on such lease, if no fine or premium or advance has been paid or delivered. One thousand rupees. The same duty as is chargeable on Articles of Association under Article 8 of Part B on the basis of the share capital of the company. (a) % of the value of the transaction for sale of currency derivatives. (b) 0.003% of the value of the transaction in the case of futures and options.

17 (c) transfer deed in case of off-market sale of non demated security. Explanation: For the purposes of this Article- (i) futures and options means instruments used in transactions relating to futures or options in a recognised Commodity Exchange; (c) 0.003% of the value of the transaction in case of sale of securities other than currency derivatives, futures and options. (ii) the value of transaction in the case of options would be the premium paid by the seller. 8 Surrender of Lease Two hundred rupees. Explanation- For the purposes of this Article, it is immaterial that the surrender of the lease is only as regards the unexpired part of the term, or is with regard to only a portion of the property. Exemption Surrender of lease, when such lease is exempted from duty. Transfer of Lease, by way of assignment and not by way of under lease (i) when such transfer is to a member of a family; (ii) Exemption in any other case Transfer of any lease exempt from duty. Explanation 1 For the purposes of this Article, member of a family shall mean a parent, spouse, son, daughter, son s wife, grandson, granddaughter, brother or sister. Explanation.2- In case of assignment of a mining lease, the market value shall be equal to the amount or value calculated under Article 28 of (i) (ii) 2% of the market value of the property which is the subject matter of transfer. The same duty as a conveyance (Article No. 18 of Part B) on the market value of the property which is the subject matter of the transfer.

18 Part B depending upon the period of the lease assigned.