Section 10 Stamp Act: Duties how to be paid

Section 10 of Indian Stamp Act: Duties how to be paid

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

(1) Except as otherwise expressly provided in this Act, all duties with which any instruments are chargeable shall be paid, and such payment shall be indicated on such instruments, by means of stamps—

(a) according to the provisions herein contained; or

(b) when no such provision is applicable thereto—as the State Government may by rule direct.

(2) The rules made under sub-section (1) may, among other matters, regulate,—

(a) in the case of each kind of instrument—the description of stamps which may be used;

(b) in the case of instruments stamped with impressed stamps—the number of stamps which may be used;

(c) in the case of bills of exchange or promissory notes—the size of the paper on which they are written.

Legal Commentary & Landmark Judgments: Section 10

Section 10 of the Indian Stamp Act, 1899 prescribes the mandatory statutory forms and mechanisms for payment of stamp duties, directing whether payment must be evidenced by impressed stamps, adhesive stamps, or modern electronic stamping certificates as regulated by statutory rules.

Mandatory Payment Through Prescribed Stamps: Mandates that all duties chargeable under the Act must be paid, and indicated on instruments, strictly by means of stamps conforming to the Act and rules framed by the State Government under Section 10(1).
Rule-Making Authority on Stamp Descriptions: Authorizes the State Government to frame rules prescribing the description of stamps (impressed sheets, special adhesive labels, e-stamp certificates, franking marks), the number of impressed stamps permitted per instrument, and paper dimensions for bills and notes.
Transition to Electronic Stamping & Franking: Modern state amendments and statutory rules integrated into Section 10 recognize electronic stamping certificates issued by authorized central recordkeeping agencies (e.g., Stock Holding Corporation of India Ltd.) as valid impressed stamps.

Key Landmark Precedents:

State of Bihar v. M/s Karam Chand Thapar & Bros Ltd. AIR 1962 SC 110: The Supreme Court held that the requirements of Section 10 read with the applicable Stamp Rules are mandatory; an instrument stamped in a manner contrary to the prescribed description of stamp cannot be treated as duly stamped under Section 2(11).
Puran Chand v. State of U.P. AIR 1974 All 312: The Allahabad High Court affirmed that where the rules require an impressed stamp, payment through unauthorized adhesive stamps or treasury challans without statutory certification fails the mandate of Section 10, rendering the document inadmissible until validated under Section 37.

Courtroom Practice & Strategic Litigation Guidance:

Verify state-specific Stamp Rules before executing high-value commercial contracts: check whether franking, e-stamping, or physical stamp paper is mandatory. Using an unnotified mode of payment (such as a plain treasury challan without an impressed certificate) results in the document being deemed unstamped under Section 15, exposing it to Section 33 impounding.

Section 10: Duties how to be paid

Section 10 of Indian Stamp Act: Duties how to be paid

Legal Commentary & Landmark Judgments: Section 10