STAMP DUTIES ACT 1923 - SECT 31
STAMP DUTIES ACT 1923 - SECT 31
31—Certain contracts to be chargeable as conveyances on sale
(1) Any contract or
agreement in writing for the sale of any estate or interest in any property
(including goods, wares and merchandise not being goods, wares and merchandise
agreed to be sold in the ordinary course of trade by a party whose business is
or includes the sale of such goods, wares and merchandise) except—
(a)
property which cannot vest in the purchaser except upon registration of a
conveyance; or
(c)
stock or shares in the stock, funds or capital of any corporation, company or
society,
shall be charged with the same ad valorem duty as if it were an actual
conveyance on sale of the estate or interest contracted or agreed to be sold.
(1a) For the purpose
of calculating ad valorem duty payable on a contract or agreement under
subsection (1), the value of the estate or interest contracted or agreed
to be sold is to be determined on the basis that the consideration specified
as being payable for the estate or interest represents the value of the estate
or interest.
(1b) However, if it
appears to the Commissioner that the consideration specified as being payable
for the estate or interest may be less than the value of the estate or
interest and—
(a) no
evidence of the value of the estate or interest is furnished to the
Commissioner; or
(b)
evidence of the value of the estate or interest furnished to the Commissioner
is, in the Commissioner's opinion, unsatisfactory,
the Commissioner may cause a valuation of the estate or interest to be made by
a person appointed by the Commissioner and may assess the duty payable by
reference to the valuation.
(1c) The Commissioner
may, having regard to the merits of the case, charge the whole or a part of
the expenses of, or incidental to, the making of a valuation under
subsection (1b) to the person liable to pay the duty and may recover the
amount so charged from the person as a debt due to the Crown.
(2) If duty has been
duly paid on a contract or agreement in accordance with subsection (1),
the following provisions apply:
(a) any
conveyance made to the purchaser under the contract or agreement is chargeable
with duty only if the value of the estate or interest under the conveyance on
the date of the conveyance is greater than the consideration specified in the
contract or agreement or on account of an assessment under
subsection (1b) (as the case requires);
(b) if
the conveyance is chargeable with duty under paragraph (a), the amount of
duty paid on the contract or agreement is to be deducted from the duty payable
on the conveyance;
(c) if
the conveyance is not chargeable with duty under paragraph (a), the
Commissioner, on application and on the production of the contract or
agreement duly stamped, must stamp the conveyance with a particular stamp
denoting that it is duly stamped.
(3) For the purposes
of this section, a receipt for the payment, in pursuance of any contract or
agreement, of any purchase money shall, in the absence of any further or other
instrument being or evidencing the contract or agreement, be charged with ad
valorem duty.
(4) If any such
contract or agreement as is mentioned in subsection (1) is afterwards
rescinded or annulled, or for any other reason is not substantially performed
or carried into effect so as to operate as, or to be followed by, a
conveyance, the person who paid the ad valorem duty upon the contract or
agreement shall be deemed to be possessed of stamped material rendered useless
by being inadvertently spoiled, within the meaning of section 106, and
the provisions of that section shall apply accordingly.
(5) This section shall
not apply to, or in respect of, any hire-purchase agreement within the meaning
of this Act.