What are the consequences of non-payment of stamp duty? and When stamp duty is to be paid?
When Stamp duty leviable on a document is not paid it cannot be accepted or received in evidence. No transaction is valid if done on the basis of instrument not duly stamped. Instruments presented to any public officer (excluding police) will be impounded. Stamp duty and penalty will be levied.
Hi, **Consequences of non-payment of stamp duty** Every person having by law an authority to receive evidence and every person in charge of public office before whom any instrument chargeable, in his opinion, with duty, is produced or comes in performance in his function, shall, if it appears to him if such instrument is not duly stamped, impound the same. No instrument chargeable with duty is admitted in evidence for any purpose or can be acted upon, registered or authenticated unless such instrument is duly stamped. The answer to second part is mentioned below: Stamp Duty must be paid in full and on time. If there is a delay in payment of stamp duty, it attracts penalty. A stamp duty paid document gets evidentiary value and is admitted as evidence in court. Document not properly stamped, is not admitted as evidence by the Court.
The documents if not duly stamped, shall not be admissible in evidence in the court of law. As per the provision of Section 59, any person who, with the intention to evade the Stamp duty, executes or signs any instruments chargeable with stamp duty, without the same being duly stamped, shall on conviction, be punished with rigorous imprisonment for ¸ term which shall not be less than one month but which may be extended upto six months and fine upto Rs. Five Thousand.