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  • Category: Government

    Why revenue stamp is mandatory on finance documents in government dealing?

    Wondering why a revenue stamp is necessary for college refund? Looking out for answers here. Scroll through this page for responses from experts and get answers to your question.

    I was asked to provide Rs 5 stamp when I had to fill a form to get my refund of my college SVNIT, SURAT. I want to know why this type of stamp is necessary? How it serves any purpose? Is it for a charge or something else? Kindly provide details on revenue stamp and it's importance.
  • Answers

    4 Answers found.
  • Revenue Stamp, Court Fee Stamps are intended to reiterate us to pay revenue to the Government for the services provided to us by them. This is the simplest and basic one intimating and stressing our responsibility of paying our taxes on the next step of property tax, water tax, profession tax and income tax without fail or delay or evading.

  • Revenue stamps have been used by India since the days of the British. It is more of a mechanism of generation of revenue for the Government. For instance,as per the Indian Stamp Act of 1899, section 2(23), a revenue stamp has to be affixed on any transaction more that Rs 5000.00 (payment, due note, receipt etc). Imagine the number of such transactions in our country, the revenue generated would run in crores.

    Revenue stamps are used for a wide range of services, court fees, tax, share transfer, consular fees, insurance etc.

    In simple terms, any payment between two people for a service holds more value if the receipt has a revenue stamp on it and the signature is across it. At times of shortage, the company puts a seal"Revenue stamp not affixed because of no supply/stock'

    A cancellation of the revenue stamp can be by means of a cross drawn on it or a hole punched out or a seal of the office/company.

  • A transaction which is more than a particular value is to be a legal transaction. The legal status will be attained for a transaction only when it is registered by paying stamp fee. These small activities wherein cash is transacted the legality will come by paying the stamp fee in the form of a revenue stamp. If afterwards there is any dispute about the payment can't be raised by the receiver once he has signed on the revenue stamp.
    It is a oneway of revenue generation to the government and this signing on the revenue stamp is in force since a long time.

    always confident

  • Post-independence, the norms for revenue stamps in India have changed to a great extent. Starting with the different design formats used for the key types it has undergone many other changes including the purposes. But since 2007 to this day we see a stability in its usage.
    Areas that involves the usage of revenue stamps in India:

    Broker's Note
    Custodian's Fee
    Foreign Bill
    High Court Notarial
    Share Transfer
    Broadcasting Radio License Fee
    Central Recruitment Fee
    Central Excise
    Foreign Travel Tax
    Match Tax
    The actual purpose behind using revenue stamp is to identify the papers that deal with monetary transactions and needs to be acknowledged by the government of India.

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