Electronic Contracts – Applicability Of Stamp Duty

This article has been co-authored by the team of LexCounsel in collaboration with Mr. Parveen Jain, VP-Legal, Aricent

1 Applicability of Stamp Duty Laws.

1.1 In India, stamp duty is payable in respect of specified instruments in accordance with applicable Central or State level stamp duty laws, on a fixed or on ad valorem basis.

1.2 Ordinarily, stamp duty is payable in respect of instruments that are physically printed and executed.

1.3 There is no specific provision in the Indian Stamp Act, 1899 ("Stamp Act") that specifically deals with electronic records and/or the stamp duty payable on execution thereof. Instruments are defined under the Indian Stamp Act as "includes every document by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or record". While a majority of State specific stamp duty laws also do not specifically include electronic records within their ambit, some State stamp duty laws do