Transcript Stamp Duty (Special Provisions) Act No.12 of 2006 [Main

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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 of
1982
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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 1439/1
And 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)
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
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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Stamp
Duty Rate
1. Affidavit
Exemption:
Affidavit on
Duty
Payable
By
Person
25/-
Compoun
ding
Authority
-
Making or
executing
request by a
public officer,
or as
required
Under any
Written law
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Specified
Instrument
2. Policy of
Insurance
Exemptions:
- Life or medical
- Plant, Mach. Or
Equip.
(Agricultural or
Construction
Indus)
- Motor Vehicles
other than
Cars, Jeeps,
m/c etc.
Stamp
Duty Rate
-/.50
for 1000
or part
Duty
Payable
By
Policy
Holder
Compoundi
ng
Authority
Insurance
Company
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Specified
Instrument
3.Warrant to act
as Notary
Public
4.Periodic
License to carry
on trade,
business,…etc.
Stamp
Duty Rate
1000/-
1000/- or 10%
of License fee
which ever is
less
Duty
Payable
By
Compounding
Authority
The Notary
Court
(If affixing
Stamp is
Impractical)
Licensee
Licensing
Authority
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Specified
Instrument
5.Claim or
demand of
money on
usage of
credit
cards
(total of
all purchases
and loans
during the
period)
Stamp
Duty Rate
10/- for
1000/- or
Part
Duty
Payable
By
Card
Holder
Compounding
Authority
Service
Provider
(Credit card
Company)
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Specified
Instrument
6.Share Certificate
(New or addl. Issue)
Exemptions
- Certificate lost etc
- New Certificate for a
different no. But same
value of
Existing shares
- Quoted share cert
(SLT pd)
- In respect of
shares in cre.
Infn. Bureau
Stamp
Duty Rate
5/- for 1000/Or part, of
Market Value
on the
Date of
Transfer or
Assignment
Duty
Payable
By
Transferee
Or
Assignee
Compoun
ding
Authority
Issuer
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Specified
Instrument
7.Mortgage
(For a definite sum
of money and affecting
any property)
Exemptions:
- given by a public
officer (official)
- on food crops
- on air Craft…
- On housing loan not
exceeding 3M from
specified bank
or institution.
Stamp
Duty
Rate
1/- for
1000/Or part
Duty
Payable
By
Compoun
ding
Authority
Mortgagee
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Specified
Instrument
8.Promissory
Note
Stamp
Duty Rate
1/- for
1000/- or
Part
Duty
Payable
By
Compounding
Authority
Promissor
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Specified
Instrument
9.Lease or
hire (Of any
Property)
Exemptions:
- Finance Lease
(excluding on
Cars, Jeeps, M/C..)
- Lease where the monthly
rent or lease not more
than 5000/-
Stamp
Duty Rate
10/- for
1000/- or
Part
(On the
aggregate
Value of
Lease)
Duty
Payable
By
Lessee
Compounding
Authority
Lessor
(to be
Regularized)
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Specified
Instrument
10. Receipt or
Discharge
(for money
or property)
Exemptions:
-Less than
1000/-Deposit or
withdrawal in a
bank or financial
Institution
-Immediate
settlement on
goods or services
Stamp
Duty Rate
1/- for
1000/Or partLimited to
Rs.50
Duty
Payable
By
Compounding
Authority
Person who is Issuer (with
acknowledgin Approval)
g receipt or
giving the
discharge
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Specified
Instrument
Stamp
Duty Rate
-Between;
Receipts
25,000 to 40,000
Given for
Remuneration
40,000 to 50,000
Exemptions50,000 or Over
Not
Exceeding
25,000
Duty
Payable
By
Employee
Compounding
Authority
Employer
25/-
40/50/-
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Specified
Instrument
11. Any other
(as may be
specified by
the minister)
Stamp
Duty Rate
Duty
Payable
By
Compoun
ding
Authority
Exempt
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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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
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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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