The KARNATAKA STAMP (AMENDMENT) ACT, 01-04-2014
(Karnataka Act No.19 of 2014)
(First published on the Karnataka Gazette Extra-ordinary on the Twenty-eight day of February, 2014)
(Received the assent of the Governor on the Twenty-eight day of February, 2014)
An Act further to amend the Karnataka Stamp Act, 1957.
Whereas it is expedient further to amend the Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957), for the purposes hereinafter appearing;
Be it enacted by the Karnataka State Legislature in the sixty-fifth year of the Republic of India as follows:-
- Short title and commencement.-
- )This Act may be called the Karnataka Stamp (Amendment) Act, 2014.
- )It shall come into force with effect from the first day of March 2014.
- Amendment of Section 9- In the Karnataka Stamp Act, 1957, (Karnataka Act 34 of 1957) (hereinafter referred to as the Principal Act), in section 9, in sub-section (1), in clause (a),-
- ) after the sixth proviso, the following shall be inserted, namely:-
- by or between the Bangalore Development Authority and the concerned allottee, in connection with the allotment of alternate equivalent site, consequent to de-notification of the land in question and pursuant to the cancellation of the preceding sale deed which is duly stamped; and
- by or between the concerned persons, in connection with the Karnataka Aerospace Policy 2013-23, specified in the Government Order No. CI 17 SPI 2012, dated 6-2-2013 or specified by the State Government from time to time.
- )after the seventh proviso, the following shall be inserted, namely:-
- "Provided also that, the State Government may, in public interest by notification reduce or remit stamp duty payable on instruments specified in notification No. RD 144 MuNoMu 2003 dated: 23-4-2003."
- Amendment of Schedule.-In the schedule to the principal Act, in Article 5,-
- ) in clause (e), in column (3), for the proviso at the end the following shall be substituted; namely:-
- )for clause (f), and the entries relating thereto, the following shall be substituted, namely:-
- for article 11, and the entries relating thereto the following shall be , substituted, namely:-
- Validation-Notwithstanding anything contained in section 9 of the principal Act, as existed prior to commencement of the Karnataka Stamp (Amendment) Act, 2014 the exemption/remission of stamp duty granted under notification No.RD.144.Munomu.2003 dated 23-4-2003 shall be deemed to have been granted under section 9, as amended by the Karnataka Stamp (Amendment) Act, 2014.
I hereby certify that this Bill is Money Bill within the meaning of Article 199 of the Constitution of India.
STATEMENT OF OBJECTS AND REASONS
(As appended to at the time of Introduction)
To give effect to the proposals announced in the Budget speech for the year 2014-15, it is considered necessary to amend the karnataka stamp Act, 1957 (Karnataka Act No.34 of 1957), to provide for the following:
- to avoid double taxation by way of stamp duty levy, it is proposed to exempt the stamp duty on instrument of sale, executed by or between the Bangalore Development Authority and the concerned person, in connection with the allotment of alternate equivalent site to the allottee, consequent to de-notification of the land in question and pursuant to the cancellation of the preceding sale deed which is duly stamped.
- To promote growth in the Aerospace industry, it is proposed to reduce or remit the stamp duty on instruments, executed by or between the concerned persons, in connection with the Karnataka Aerospace Policy 2013-23.
- To give relief / remedy to the instruments exempted from the stamp duty, as specified in the Notification No. RD 144 MuNoMu 2003 dated 23.04.2003. it is proposed to validate the same
- To generate more revenue in the form of stamp duty, by way of better tax compliance, it is proposed to rationalize the stamp duty on Joint Development Agreement and its consequent power of attorney for joint development, by way of reducing the stamp duty from the current 5% to 2%.
- To rationalize stamp duty on award relating to movable property, it is proposed to reduce the stamp duty on such award from the current 5% to the rates, ranging from minimum 1/4 (0.25)percent to maximum 3/4 (0.75) percent, as per the recommendation of the Law Commission of Karnataka (Twentieth Report)
- To promote the growth of trade / industry relating to the goods being imported in the State of Karnataka, it is proposed to reduce stamp duty on "Delivery order in respect of the goods" from the current 0.5% to 0.1% and to exempt stamp duty on such goods which are exempted from the levy of customs duty by the Government of India. This measure will also generate more revenue in the form of stamp duty by way of better tax compliance.
Hence the Bill.