In the absence of an agreement to the contrary, the expense of providing the proper stamp shall be borne,—
(a) in the case of any instrument described in any of the following Articles of Schedule I, namely:—
No. 2 (Administration Bond),
No. 6 (Agreement relating to Deposit of Title-deeds, Pawn or Pledge),
No. 13 (Bill of Exchange),
No. 15 (Bond),
No. 16 (Bottomry Bond),
No. 23 (Conveyance),
No. 26 (Customs Bond),
No. 27 (Debenture),
No. 32 (Further Charge),
No. 34 (Indemnity-bond),
No. 40 (Mortgage-deed),
No. 49 (Promissory-note),
No. 55 (Release),
No. 56 (Respondentia Bond),
No. 57 (Security-bond or Mortgage-deed),
No. 58 (Settlement),
by the person drawing, making or executing such instrument;
(b) in the case of a policy of insurance other than fire-insurance—by the person effecting the insurance;
(c) in the case of a policy of fire-insurance—by the person issuing the policy;
(d) in the case of a conveyance (including a reconveyance of mortgaged property) by the grantee: in the case of a lease or agreement to lease—by the lessee or intended lessee;
(e) in the case of a counterpart of a lease—by the lessor;
(f) in the case of an instrument of exchange—by the parties in equal shares;
(g) in the case of a certificate of sale—by the purchaser of the property to which such certificate relates; and
(h) in the case of an instrument of partition—by the parties thereto in proportion to their respective shares in the whole property partitioned.
Legal Commentary & Landmark Judgments: Section 29
Section 29 of the Indian Stamp Act, 1899 specifies the statutory default allocation determining which party to a transaction is obligated to pay the requisite stamp duty, in the absence of an agreement to the contrary.
Express contractual indemnity clauses should be incorporated whenever liability is shifted between commercial parties.
Section 29 provides clarity in transactional negotiations. In standard conveyance transactions, the purchaser pays stamp duty by default. In lease agreements, the tenant bears the stamp duty. Express contractual indemnity clauses should be incorporated whenever liability is shifted between commercial parties.