1. Introduction Chargeability to Stamp Duty Rates, By whom Stamp Duty is Payable and who are the Compounding Authorities. General Exemptions

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Introduction Chargeability to Stamp Duty Rates, By whom Stamp Duty is Payable and who are the Compounding Authorities. General Exemptions Mode of Payment

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Historical Background (Brief) Effect of devolution of certain legislative powers to

Provincial Councils. Abolition of application of Stamp Duty Act 43 of 1982

w.e.f 01.05.2002

Extent of Applicability of Stamp Duty (Special Provisions) Act and the Stamp Duty Act No 43 of1982

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Stamp Duty is Charged on every specified instrument

Executed, drawn or presented in Sri Lanka

Executed outside Sri Lanka in relation to a property in Sri Lanka and presented in Sri Lanka

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Rates: Specified in the Gazette 1439/1And 1439/3 (Dated 03.04.2006)

Duty is generally payable by the party making or executing the instrument (or the party getting the facility or property)

Section 7 of the Act specifies categories of persons who are required to compound for SD payable (after the CGIR’s authorization) 5

Generally, the person issuing the instrument is authorized to compound for the duty payable.(an exception is that an Employer will be a Compounding agent even though the issuer of the receipt is an Employee).

Compounding authority should issue a Certificate to the liable person (Other than employers)

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7

Stamp Duty Rate

Duty Payable By

Compounding

Authority

1. Affidavit

Exemption:

Affidavit on

request by a

public officer,

or as

required

Under any

Written law

Person

Making or

executing

--25/-

Specified Specified

InstrumentInstrument

Stamp Stamp

Duty RateDuty Rate

DutyDuty

PayablePayable

ByBy

CompoundiCompoundingng

AuthorityAuthority

2. Policy of2. Policy of

InsuranceInsurance

Exemptions:Exemptions:

- Life or medical - Life or medical

- Plant, Mach. Or - Plant, Mach. Or

Equip.Equip.

(Agricultural or(Agricultural or

ConstructionConstruction

Indus)Indus)

- Motor Vehicles- Motor Vehicles

other than other than

Cars, Jeeps,Cars, Jeeps,

m/c etc. m/c etc.

-/.50-/.50

for 1000for 1000

or partor part

PolicyPolicy

HolderHolder

InsuranceInsurance

CompanyCompany

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Specified Specified


Stamp Stamp

Duty RateDuty Rate

DutyDuty

PayablePayable

ByBy

CompoundingCompounding

AuthorityAuthority

3.Warrant to act3.Warrant to act

as Notaryas Notary

Public Public

4.Periodic4.Periodic

License to carryLicense to carry

on trade,on trade,

business,…etc. business,…etc.

1000/-1000/-

1000/- or 10% 1000/- or 10% of License fee of License fee which ever is which ever is

lessless

The NotaryThe Notary

LicenseeLicensee

CourtCourt

(If affixing(If affixing

Stamp is Stamp is

Impractical)Impractical)

LicensingLicensing

AuthorityAuthority

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Specified Specified


Stamp Stamp

Duty RateDuty Rate

DutyDuty

PayablePayable

ByBy


AuthorityAuthority

5.Claim or 5.Claim or

demand ofdemand of

money onmoney on

usage ofusage of

creditcredit

cardscards

(total of(total of

all purchasesall purchases

and loansand loans

during theduring the

period)period)

10/- for 10/- for

1000/- or1000/- or

PartPart

CardCard

HolderHolder

ServiceService

ProviderProvider

(Credit card(Credit card

Company)Company)

10

Specified Specified


Stamp Stamp

Duty RateDuty Rate

DutyDuty

PayablePayable

ByBy

CompounCompoundingding

AuthorityAuthority

66..Share CertificateShare Certificate

(New or addl. Issue)(New or addl. Issue)

ExemptionsExemptions

- Certificate lost etc- Certificate lost etc

- New Certificate for a - New Certificate for a

different no. But same different no. But same

value ofvalue of

Existing sharesExisting shares

- Quoted share cert- Quoted share cert

(SLT pd)(SLT pd)

- In respect of - In respect of

shares in cre.shares in cre.

Infn. BureauInfn. Bureau

5/- for 1000/- 5/- for 1000/-

Or part, ofOr part, of

Market Value Market Value on theon the

Date of Date of

Transfer orTransfer or

AssignmentAssignment

TransfereeTransferee

Or Or

AssigneeAssignee

IssuerIssuer

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Specified Specified


Stamp Stamp

Duty Duty RateRate

DutyDuty

PayablePayable

ByBy

CompounCompoundingding

AuthorityAuthority

7.Mortgage7.Mortgage

(For a definite sum(For a definite sum

of money and affectingof money and affecting

any property)any property)


- given by a public- given by a public

officer (official)officer (official)

- on food crops- on food crops

- on air Craft…- on air Craft…

- On housing loan not- On housing loan not

exceeding 3M fromexceeding 3M from

specified bankspecified bank

or institution.or institution.

1/- for 1/- for

1000/- 1000/-

Or partOr part

MortgageeMortgagee

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Specified Specified


Stamp Stamp

Duty RateDuty Rate

DutyDuty

PayablePayable

ByBy


AuthorityAuthority

8.Promissory8.Promissory

NoteNote

1/- for 1/- for

1000/- or 1000/- or

PartPart

PromissorPromissor

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Specified Specified


Stamp Stamp

Duty RateDuty Rate

DutyDuty

PayablePayable

ByBy


AuthorityAuthority

9.Lease or 9.Lease or

hire (Of anyhire (Of any

Property)Property)


- Finance Lease - Finance Lease

(excluding on (excluding on

Cars, Jeeps, M/C..)Cars, Jeeps, M/C..)

- Lease where the monthly - Lease where the monthly rent or lease not more rent or lease not more than 5000/-than 5000/-

10/- for 10/- for

1000/- or 1000/- or

Part Part

(On the (On the aggregate aggregate

Value of Value of

Lease)Lease)

LesseeLessee Lessor Lessor

(to be (to be

Regularized)Regularized)

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Specified Specified


Stamp Stamp

Duty RateDuty Rate

DutyDuty

PayablePayable

ByBy


AuthorityAuthority

10. Receipt or 10. Receipt or

DischargeDischarge

(for money (for money

or property)or property)Exemptions:Exemptions:-Less than Less than

1000/-1000/--Deposit or Deposit or

withdrawal in awithdrawal in a

bank or financialbank or financial

InstitutionInstitution

-Immediate -Immediate

settlement onsettlement on

goods or servicesgoods or services

1/- for 1/- for 1000/-1000/-

Or part-Or part-

Limited to Limited to

Rs.50Rs.50

Person who is Person who is acknowledginacknowledging receipt or g receipt or giving the giving the dischargedischarge

Issuer (with Issuer (with

Approval)Approval)

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Specified Specified


Stamp Stamp

Duty RateDuty Rate

DutyDuty

PayablePayable

ByBy


AuthorityAuthority

ReceiptsReceipts

Given forGiven for

RemunerationRemuneration

Exemptions-Exemptions-

Not Not

ExceedingExceeding

25,00025,000

--Between;Between;

25,000 to 40,000 25/-25,000 to 40,000 25/-

40,000 to 50,000 40/-40,000 to 50,000 40/-

50,000 or Over 50/-50,000 or Over 50/-

EmployeeEmployee EmployerEmployer

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Specified Specified


Stamp Stamp

Duty RateDuty Rate

DutyDuty

PayablePayable

ByBy

CompoundCompoundinging

AuthorityAuthority

11. Any other 11. Any other

(as may be(as may be

specified byspecified by

the minister)the minister)

ExemptExempt

Instruments executed by, or on behalf of, or in favour of a co-operative society Instruments executed by or, on behalf of

the Government of any Country (in respect of which an order is in force)

Any instrument in relation to which the Government would be liable to pay SD (not for this exemption)

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Instruments in relation to supply of any service to Diplomatic Missions etc.

(Where the Diplomatic privilege Act is applicable and reciprocal benefits are available)

Instruments executed under farmers pension and Social Security Benefit Scheme

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Affixing stamps Compounding ( to be remitted on

specified dates) Payment to bank by (cash or draft) and

CGIRs endorsement

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For specific applications

please consult us.

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Documents

1. Introduction Chargeability to Stamp Duty Rates, By whom Stamp Duty is Payable and who are the Compounding Authorities. General Exemptions