STAMP DUTY – SGPREVENUE

STAMP DUTY

Definition:

  •  StampDuty is charged under section 37 of the finance Statute of the Sabaragamuwa Province No. 06 of 1990.

There shall be charged on:

  • Every instrument relating to a transfer of immovable property situated in the Sabaragamuwa Province.
  • Every document presented or filed, in the proceedings instituted in any Court of Law established by law, in the Sabaragamuwa Province of Sri Lanka.

Effective Date:

  • From the 1st of January 1991.
Stamp Duty Rates :
01.Gift of  Immovable property  
(a). Value Rs.50,000/= or lessFor every Rs.100/= or part thereof (3%)Rs.3.00
(b). If value exceeds Rs.50,00/=

On the first Rs.50,000/= (calculating by 3%)

On the balance, for every Rs.100/= or part thereof (2%)

Rs.1500.00

Rs.2.00

02. Transferring of Immovable Property (Freehold)
(a).Value Rs.100,000/= or lessFor every Rs.100/= or part thereof (3%)Rs.3.00
(b).If Value exceeds Rs.100,000/=

On the first Rs.100,000/= (calculating by 3%)

On the balance, for every Rs.100/= or part thereof (4%)

Rs.3000.00

Rs.4.00

03.I. Exchange of any property ( Between co-heirs)
(a).If equal valueRs.10.00
(b).If  not equal valueThe same duty as the duty payable on the transfer of a property whose value is equivalent to the difference in market value of the properties exchanged.
03.II.Exchange of any property (Not between co-heirs)
(a).If equal valueThe same duty as on a conveyance of such property at its market value
(b).If not equal valueThe same duty as on a conveyance of  the property of higher value, computed at its market value thereof.
04.Every Document presented or filed, in the proceedings intuited in :
(a). High CourtFor every Rs.1000/= or part thereof(Max. of Rs.2000/=)2.00
(b).District CourtFor every Rs.1000/= or part thereof(Max. of Rs.1000/=)1.00
Gazette:
  • Gazette notification 822/16, 10/06/1994

 

Valuation for Stamp Duty (Immovable Property)

 

  • To any immovable property (other than which is gifted) and to any date, means the price which in the opinion of the Assessor, property would have fetched in the open market on that day.
  • To any immovable property which is gifted, being immovable property which was acquired by donor on or before March 31, 1977 means.-
  1. The price which, in the opinion of the Assessor, that property would have fetched if sold in the open market on March 31, 1977 increased by an amount equal to the cost of improvement, alterations, and additions, if any, made to such property after March 31, 1977 and prior to the date of the instrument by which such property is gifted ; or

2. The price which, in the opinion of the Assessor, that property  

     would have fetched if sold in the open market on the date of the instrument by which such property is gifted;

 

Whichever price is the lower
  •  Any immovable property which is gifted, being immovable property which was acquired by the donor after March 31, 1977 means-

 

  1. The price which, in the opinion of the Assessor, that property would have fetched if sold in the open market on the date on which such property was acquired by the donor increased by an amount equal to the cost of improvements, alterations, and additions, if any, made to such property after the date on which the property was acquired by the donor, and prior to the date of the instrument by which such property is gifted ; or

 

  1. The price which, in the opinion of the Assessor, that property would have fetched if sold in the open market on the date of the instrument by which such property was gifted ;

 

Whichever price is the lower
  •  Duty is payable at the time of execution of the instrument.

 

  • That the stamp duty payable on an instrument relating to a transfer of immovable property may be paid to a prescribed bank which shall issue a certificate of payment of the amount of stamp duty paid and the date of payment of such duty and such instrument shall have affixed on the certificate of payment issued by the bank.

 

These bank certificate could be purchased from any branch of people’s Bank or Bank of Ceylon.