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 Introduction  Chargeability to Stamp Duty  Rates, By whom Stamp Duty is Payable and who are the Compounding Authorities.  General Exemptions  Mode of Payment 2

 Historical Background (Brief)  Effect of devolution of certain legislative powers to Provincial Councils.  Abolition of application of Stamp Duty Act 43 of 1982 w.e.f  Extent of Applicability of Stamp Duty (Special Provisions) Act and the Stamp Duty Act No 43 of

 Stamp Duty is Charged on every specified instrument  Executed, drawn or presented in Sri Lanka  Executed outside Sri Lanka in relation to a property in Sri Lanka and presented in Sri Lanka 4

 Rates: Specified in the Gazette 1439/1 And 1439/3 (Dated )  Duty is generally payable by the party making or executing the instrument (or the party getting the facility or property)  Section 7 of the Act specifies categories of persons who are required to compound for SD payable (after the CGIR’s authorization) 5

 Generally, the person issuing the instrument is authorized to compound for the duty payable. (an exception is that an Employer will be a Compounding agent even though the issuer of the receipt is an Employee).  Compounding authority should issue a Certificate to the liable person (Other than employers) 6

7 Stamp Duty Rate Duty Payable By Compoun ding Authority 1. Affidavit Exemption: Affidavit on request by a public officer, or as required Under any Written law Person Making or executing - 25/-

SpecifiedInstrumentStamp Duty Rate DutyPayableBy Compoundi ng Authority 2. Policy of Insurance Insurance Exemptions: Exemptions: - Life or medical - Life or medical - Plant, Mach. Or - Plant, Mach. Or Equip. Equip. (Agricultural or (Agricultural or Construction Construction Indus) Indus) - Motor Vehicles - Motor Vehicles other than other than Cars, Jeeps, Cars, Jeeps, m/c etc. m/c etc. -/.50 -/.50 for 1000 for 1000 or part or part Policy Policy Holder HolderInsurance Company Company 8

SpecifiedInstrumentStamp Duty Rate DutyPayableByCompoundingAuthority 3.Warrant to act as Notary as Notary Public Public4.Periodic License to carry License to carry on trade, on trade, business,…etc. business,…etc.1000/- 1000/- or 10% of License fee which ever is less The Notary LicenseeCourt (If affixing Stamp is Impractical)LicensingAuthority 9

SpecifiedInstrumentStamp Duty Rate DutyPayableByCompoundingAuthority 5.Claim or demand of demand of money on money on usage of usage of credit credit cards cards (total of (total of all purchases all purchases and loans and loans during the during the period) period) 10/- for 1000/- or PartCardHolderServiceProvider (Credit card Company) 10

SpecifiedInstrumentStamp Duty Rate DutyPayableBy Compoun ding Authority 6.Share Certificate (New or addl. Issue) (New or addl. Issue) Exemptions Exemptions - Certificate lost etc - Certificate lost etc - New Certificate for a - New Certificate for a different no. But same different no. But same value of value of Existing shares Existing shares - Quoted share cert - Quoted share cert (SLT pd) (SLT pd) - In respect of - In respect of shares in cre. shares in cre. Infn. Bureau Infn. Bureau 5/- for 1000/- Or part, of Market Value on the Date of Transfer or AssignmentTransfereeOrAssigneeIssuer 11

SpecifiedInstrumentStamp Duty Rate DutyPayableBy Compoun ding Authority 7.Mortgage (For a definite sum (For a definite sum of money and affecting of money and affecting any property) any property)Exemptions: - given by a public officer (official) officer (official) - on food crops - on air Craft… - On housing loan not exceeding 3M from exceeding 3M from specified bank specified bank or institution. or institution. 1/- for 1000/- Or part Mortgagee 12

SpecifiedInstrumentStamp Duty Rate DutyPayableByCompoundingAuthority 8.Promissory Note Note 1/- for 1000/- or PartPromissor 13

14 SpecifiedInstrumentStamp Duty Rate DutyPayableByCompoundingAuthority 9.Lease or hire (Of any hire (Of any Property) Property)Exemptions: - Finance Lease (excluding on Cars, Jeeps, M/C..) - Lease where the monthly rent or lease not more than 5000/- 10/- for 1000/- or Part (On the aggregate Value of Lease)LesseeLessor (to be Regularized)

15 SpecifiedInstrumentStamp Duty Rate DutyPayableByCompoundingAuthority 10. Receipt or Discharge Discharge (for money (for money or property) or property)Exemptions: -Less than 1000/- 1000/- -Deposit or withdrawal in a withdrawal in a bank or financial bank or financial Institution Institution-Immediate settlement on settlement on goods or services goods or services 1/- for 1000/- Or part- Limited to Rs.50 Person who is acknowledgin g receipt or giving the discharge Issuer (with Approval)

16 SpecifiedInstrumentStamp Duty Rate DutyPayableByCompoundingAuthority Receipts Given for Remuneration Exemptions- Exemptions-NotExceeding25,000 - Between; 25,000 to 40,000 25/- 25,000 to 40,000 25/- 40,000 to 50,000 40/- 50,000 or Over 50/- EmployeeEmployer

17 SpecifiedInstrumentStamp Duty Rate DutyPayableBy Compoun ding Authority 11. Any other (as may be (as may be specified by specified by the minister) the minister) Exempt Exempt

 Instruments executed by, or on behalf of, or in favour of a co-operative society  Instruments executed by or, on behalf of the Government of any Country (in respect of which an order is in force)  Any instrument in relation to which the Government would be liable to pay SD (not for this exemption) 18

 Instruments in relation to supply of any service to Diplomatic Missions etc. (Where the Diplomatic privilege Act is applicable and reciprocal benefits are available)  Instruments executed under farmers pension and Social Security Benefit Scheme 19

 Affixing stamps  Compounding ( to be remitted on specified dates)  Payment to bank by (cash or draft) and CGIRs endorsement 20

For specific applications please consult us. 21