Stamp Duty (Special Provisions) Act 2006

This Act may be cited as the Stamp Duty (Special

The provisions of this Act shall come into operation with effect from April 1, 2006.

The Commissioner – General shall, be charged with the proper implementation and administration of this Act.

CHAPTER 1

IMPOSITION OF STAMP DUTY AND EXEMPTIONS AND

APPLICABLE PROCEDURE

From and after the date of the coming into operation of this Act, there shall be charged a duty (hereinafter to be called “stamp duty”) at such rate as the Minister may determine by Order published in the Gazette on every

Different rates may be determined in respect of different classes or categories of instruments.

Every Order made under this section shall come into operation on the date of it publication in the Gazette or on such later date as may be specified therein. Every such Order shall within three months of the making thereof, be placed before Parliament for approval. If no meeting of Parliament is held within such period, such Order shall be so placed at the first meeting of Parliament held immediately thereafter for approval.

Any Order not so approved by Parliament shall with effect from the date of such disapproval be deemed to be rescinded but without prejudice to anything previously done thereunder. Notification of the date on which the Order was so rescinded shall be published in the Gazette.

For the purposes of section 3, “specified instrument”

means-

an affidavit;

a policy of insurance;

a warrant to act as Notary Public;

a licence issued for a specified period under any written law for the time being in force, being a licence which authorizes the holder thereof to carry on any trade, business, profession or vocation;

a claim, demand or request made by a service provider from the holder of a credit card, for the payment of a stated sum of money, due in respect of a transaction entered into using such credit card;

a share certificate on new or additional issue or on transfer or assignment;

a bond or mortgage for any definite and certain sum of money and affecting any property;

a promissory note;

a lease or hire of any property;

a receipt or discharge given for any money or other property;

any other instrument which the Minister may in the interest of the economic progress of Sri Lanka, specify by Order published in the Gazette.

From and after the date of the coming into operation of this Act, the Minister may from time to time by Order published in the Gazette specify the instruments, which shall be exempt from the payment of stamp duty.

Otherwise than in cases where there is an agreement to the contrary, stamp duty shall be payable:-

in the case of a policy of insurance, by the person effecting the insurance;

in the case of a transfer or assignment of any share, by the transferee or assignee of such share;

in the case of a lease, by the lessee;

in the case of a claim, demand or request by a service provider from the holder of a credit card, by the credit card holder ; and

in all other cases, by the person drawing, making or executing such instrument.

Notwithstanding the provisions of section 6, -

Where any stamp duty which has been compounded in terms of subsection (1) is paid, the person authorized to compound such duty (other than an employer referred to in paragraph (d) of subsection (1), shall issue to the person liable to pay stamp duty a Certificate substantially in the form set out below:-

Otherwise than when stamp duty is compounded in terms of section 7, stamp duty shall be paid by means of affixing adhesive stamps to the required value, at the time of execution of the instrument; the person liable to pay the duty shall cancel the stamp or stamps so affixed thereby preventing the stamps from being used again:

Where the duty payable on an instrument is paid in the manner specified in subsection (1), the instrument shall be deemed to have been properly stamped.

Where stamp duty is to be paid

All stamp duty payable to a Provincial Council in respect of documents and instruments referred to in List I of the Ninth Schedule to the Constitution, shall be paid to the respective Provincial Council within whose limits the instrument was executed or the property situated as the case may be :

Provided that in the case of any document executed within the limits of a Provincial Council established for any Province as set out in the Eighth Schedule to the Constitution, the stamp duty chargeable thereon, shall, in the event of the dissolution of any such Provincial Council, be paid to a Bank prescribed by the Commissioner - General for such purpose, until such time as a Provincial Council is established in respect of such Province.

Where an Assessor is of the opinion that an instrument liable to stamp duty has not been duly stamped, he shall assess the value of the stamp duty payable in respect of such instrument, by the person liable to pay such duty and forward a Notice to such person requiring him to pay the amount due thereon, within the time specified in the Notice.

The provisions of the Inland Revenue Act to apply

The provisions of Chapters XVIII to XXIV of the

Inland Revenue Act relating to Assessment, Appeals,

Determination of Appeals and Finality of Assessments and the Recovery or Refund of Income Tax, shall mutatis mutandis apply to Assessment, Appeals, Determination of Appeals and

Finality of Assessments and the Recovery or Refund of Stamp

Duty under this Act.