1.  Short title, extent and commencement


3.SECTION .......  Instruments chargeable with duty.

Section 3 discusses chargebility of instrumnets under Stamp Act. It discusess not only instruments chargeable with duty but also instruments not chargeable with duty.

Validity of Instrument not dully stamoed.........Section 35 Inadmissible in evidence.

.– (1) This Act may be called the [* * *] Stamp Act, 1899.

      [(2)  It extends to the whole of Pakistan].

         (3)  It shall come into force on the first day of July, 1899.

2.   Definitions.– In this Act, unless there is something repugnant in the subject or context,–

         (1)  “banker” includes a bank and any person acting as a banker;

         (2)  “bill of exchange” means a bill of exchange as defined by the Negotiable Instruments Act, 1881, and includes also a hundi, and any other document entitling or purporting to entitle any person, whether named therein or not, to payment by any other person of, or to draw upon any other person for, any sum of money;

         (3)  “bill of exchange payable on demand” includes–

               (a)  an order for the payment of any sum of money by a bill of exchange or promissory note, or for the delivery of any bill of exchange or promissory note in satisfaction of any sum of money, or for the payment of any sum of money, out of any particular fund which may or may not be available, or upon any condition or contingency which may or may not be performed or happen;

               (b)  an order for the payment of any sum of money weekly, monthly or at any other stated periods; and

               (c)  a letter of credit, that is to say, any instrument by which one person authorises another to give credit to the person in whose favour it is drawn;

         (4)  “bill of lading” includes a “through bill of lading”, but does not include a mate’s receipt;

         (5)  “bond” includes–

                    (a)   any instrument whereby a person obliges himself to pay money to another, on condition that the obligation shall be void if a specified act is performed, or is not performed, as the case may be;

               (b)  any instrument attested by a witness and not payable to order or bearer, whereby a person obliges himself to pay money to another; and

               (c)  any instrument so attested, whereby a person obliges himself to deliver grain or other agricultural produce to another;

         (6)  “chargeable” means, as applied to an instrument executed or first executed after the commencement of this Act, chargeable under this Act and, as applied to any other instrument, chargeable under the law in force in [Pakistan] when such instrument was executed, or where several persons executed the instrument at different times, first executed;

         (7)  “cheque” means a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand;


       [6][(9)  “Collector” means the Collector of a District appointed under the Punjab Land Revenue Act, 1967 (XVII of 1967) and includes an officer authorized by the Government to exercise the powers of the Collector;]

    [(9A)  “Commissioner” means a Commissioner of a Division appointed under the Punjab Land Revenue Act, 1967 (XVII of 1967) and includes an Additional Commissioner;]

       (10)  “conveyance” includes a conveyance on sale and every instrument by which property, whether movable or immovable, is transferred inter vivos and which is not otherwise specifically provided for by Schedule I;

    [(11)  “duly stamped”, means affixation of an adhesive or impressed stamp or e-stamp of not less than the requisite amount and that the stamp has been legally affixed, used or electronically generated;]

  [(11A)  “e-stamp” means a paper printed or partially printed containing a bar code or having any of  its unique identification code and such other information, as may be specified by the rules, to be generated and printed, on deposit of money equivalent to chargeable stamp duty in the account of the Government;]

       (12)  “executed” and “execution”, used with reference to instruments, mean “signed” and “signature”;

   (12-A)  * * * * * * * * * * *]

   13)  “impressed stamp” includes–

(a)    the label affixed and impressed by the proper officer;

(b)   the stamp embossed or engraved on a stamp paper; and

(c)    an e-stamp;]

       (14)  “instrument” includes every document by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or recorded [and includes any instrument executed in electronic form];

       (15)  “instrument of partition” means any instrument whereby co-owners of any property divide or agree to divide such property in severalty, and includes also a final order for effecting a partition passed by any Revenue-authority or any Civil Court and an award by an arbitrator directing a partition;

       (16)  “lease” means a lease of immovable property, and includes also–

               (a)  a patta;

               (b)  a kabuliyat or other undertaking in writing, not being a counter-part 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;(16-A) “marketable security” means a security of such a description as to be capable of being sold in any stock market in [Pakistan] or in the United kingdom];

       (17)  “mortgage-deed” includes every instrument whereby for the purpose of securing money advanced, or to be advanced, by way of loan, or an existing or future debt, or the performance of an engagement, one person transfers, or creates, to, or in favour of, another, a right over or in respect of specified property;

       (18)  “paper” includes vellum, parchment or any other material on which an instrument may be written;

       (19)  “policy of insurance” includes–

               (a)  any instrument by which one person, in consideration of a premium, engages to indemnify another against loss, damage or liability arising from an unknown or contingent event;

               (b)  a life-policy, and any policy insuring any person against accident or sickness, and any other personal insurance* * *;

               (c)  * * * * * * * * * * *]

       (20)  “policy of sea-insurance” or “sea-policy”

               (a)  means any insurance made upon any ship or vessel (whether for marine or inland navigation), or upon the machinery, tackle or furniture of any ship or vessel, or upon any goods, merchandise or property of any description whatever on board of any ship or vessel, or upon the freight of, or any other interest which may be lawfully insured in, or relating to, any ship or vessel; and

               (b)  includes any insurance of goods, merchandise or property for any transit which includes not only sea risk within the meaning of clause (a), but also any other risk incidental to the transit insured from the commencement of the transit to the ultimate destination covered by the insurance;

                           Where any person, in consideration of any sum of money paid or to be paid for additional freight or otherwise, agrees to take upon himself any risk attending goods, merchandise or property of any description whatever while on board of any ship or vessel, or engages to indemnify the owner of any such goods, merchandise or property from any risk, loss or damage, such agreement or engagement shall be deemed to be a contract for sea-insurance;

       (21)  “power-of-attorney” includes any instrument (not chargeable with a fee under the law relating to court-fees for the time being in force) empowering a specified person to act for and in the name of the person executing it;

       (22)  “promissory note” means a promissory note as defined by the Negotiable Instruments Act, 188 it also includes a note promising the payment of any sum of money out of any particular fund which may or may not be available, or upon any condition or contingency which may or may not be performed or happen;

[(22-A) “Public Office” includes a Government Office, a People’s Local Council, a Local Authority, a Statutory Corporation or a similar body set up by the Central or Provincial Government, commercial or industrial concern whether singly owned or run through partnership having more than twenty employees, a body registered under the Companies Act, 1913, and a Co-operative Society;

   (22-B)  “Public Officer” includes an Officer-in-charge of a Public Office];

       (23)  “receipt” includes any note, memorandum or writing–

               (a)  whereby any money, or any bill of exchange, cheque or promissory note is acknowledged to have been received, or

               (b)  whereby any other movable property is acknowledged to have been received in satisfaction of a debt, or

               (c)  whereby any debt or demand, or any part of a debt or demand, is acknowledged to have been satisfied or discharged, or

               (d) which signifies or imports any such acknowledgment, and whether the same is or is not signed with the name of any person;

       (24)  “settlement” means any non-testamentary disposition, in writing, of movable or immovable property made–

               (a)  in consideration of marriage,

               (b)  for the purpose of distributing property of the settler among his family or those for whom he desires to provide, or for the purpose of providing for some person dependent on him, or

               (c)  for any religious or charitable purpose;

and includes an agreement in writing to make such a disposition [and, where any such disposition has not been made in writing, any instrument recording, whether by way of declaration of trust or otherwise, the terms of any such disposition];[and]

   (25)  “soldier” includes any person below the rank of non-commissioned officer who is enrolled under the Indian Army A][or the Pakistan Army Act, 1952].]

        (26) “urban area” means an area which is:

  1. a rating area under the Punjab Urban Immovable Property Tax Act, 1958 (V of 1958);
  2. the area already declared as an urban area under the Punjab Finance Act, 2010 (VI of 2010);
  3. any other area which the Board of Revenue may, by notification, declare as an urban area; and
  4. an area developed by a development authority, housing authority, statutory body, cooperative housing society or a real estate company or developer.]



A-Of the liability of instruments to duty

3.   Instruments chargeable with duty.– Subject to the provisions of this Act and the exemptions contained in Schedule I, the following instruments shall be chargeable with duty of the amount indicated in that schedule as the proper duty therefor respectively, that is to say–

      (a)  every instrument mentioned in that Schedule which, not having been previously executed by any person, is executed in [Pakistan] on or after the first day of July, 1899;

      (b)  every bill of exchange [payable otherwise than on demand]  * *] or promissory note drawn or made out of [Pakistan] on or after that day and accepted or paid, or presented for acceptance or payment, or endorsed, transferred or otherwise negotiated, in [Pakistan]; and

      (c)  every instrument (other than a bill of exchange [* * *] or promissory note) mentioned in that Schedule, which, not having been previously executed by any person, is executed out of [Pakistan] on or after that day, relates to any property situate, or to any matter or thing done or to be done, in[Pakistan] and is received in [Pakistan]:

      Provided that no duty shall be chargeable in respect of–

      (1)  any instrument executed by, or on behalf of, or in favour of, the [Government] in cases where, but for this exemption, the [Government] would be liable to pay the duty chargeable in respect of such instrument;

      (2)  any instrument for the sale, transfer or other disposition, either absolutely or by way of mortgage or otherwise, of any ship or vessel, or any part, interest, share or  property of or in any ship or vessel registered under the Merchant Shipping Act, 1894 or under Act XIX of 1838, or the Registration of Ships Act, 1841, as amended by subsequent Acts.