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Stamp Duty Law: Stamp Duty on Bills of Exchange

Description: This quiz will test your knowledge on Stamp Duty Law: Stamp Duty on Bills of Exchange.
Number of Questions: 15
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Tags: stamp duty law bills of exchange stamp duty
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What is the amount of stamp duty payable on a bill of exchange drawn in India and payable outside India?

  1. 0.005%

  2. 0.01%

  3. 0.02%

  4. 0.03%


Correct Option: A
Explanation:

The amount of stamp duty payable on a bill of exchange drawn in India and payable outside India is 0.005% of the amount of the bill.

What is the amount of stamp duty payable on a bill of exchange drawn outside India and payable in India?

  1. 0.01%

  2. 0.02%

  3. 0.03%

  4. 0.04%


Correct Option: A
Explanation:

The amount of stamp duty payable on a bill of exchange drawn outside India and payable in India is 0.01% of the amount of the bill.

What is the amount of stamp duty payable on a bill of exchange drawn in India and payable in India?

  1. 0.02%

  2. 0.03%

  3. 0.04%

  4. 0.05%


Correct Option: A
Explanation:

The amount of stamp duty payable on a bill of exchange drawn in India and payable in India is 0.02% of the amount of the bill.

What is the maximum amount of stamp duty that can be charged on a bill of exchange?

  1. Rs. 100

  2. Rs. 200

  3. Rs. 300

  4. Rs. 400


Correct Option: A
Explanation:

The maximum amount of stamp duty that can be charged on a bill of exchange is Rs. 100.

Who is liable to pay stamp duty on a bill of exchange?

  1. The drawer

  2. The acceptor

  3. The payee

  4. The endorser


Correct Option: A
Explanation:

The drawer is liable to pay stamp duty on a bill of exchange.

When is stamp duty payable on a bill of exchange?

  1. At the time of drawing the bill

  2. At the time of acceptance of the bill

  3. At the time of payment of the bill

  4. At the time of endorsement of the bill


Correct Option: A
Explanation:

Stamp duty is payable on a bill of exchange at the time of drawing the bill.

What is the penalty for not paying stamp duty on a bill of exchange?

  1. A fine of Rs. 100

  2. A fine of Rs. 200

  3. A fine of Rs. 300

  4. A fine of Rs. 400


Correct Option: B
Explanation:

The penalty for not paying stamp duty on a bill of exchange is a fine of Rs. 200.

What is the procedure for paying stamp duty on a bill of exchange?

  1. Affixing a stamp of the appropriate value on the bill

  2. Writing the amount of stamp duty on the bill

  3. Paying the stamp duty to the stamp vendor

  4. All of the above


Correct Option: D
Explanation:

The procedure for paying stamp duty on a bill of exchange is to affix a stamp of the appropriate value on the bill, write the amount of stamp duty on the bill, and pay the stamp duty to the stamp vendor.

What is the purpose of stamp duty on bills of exchange?

  1. To generate revenue for the government

  2. To discourage the use of bills of exchange

  3. To protect the interests of the parties to a bill of exchange

  4. None of the above


Correct Option: A
Explanation:

The purpose of stamp duty on bills of exchange is to generate revenue for the government.

Is stamp duty payable on a bill of exchange that is drawn for a period of less than 30 days?

  1. Yes

  2. No


Correct Option: B
Explanation:

Stamp duty is not payable on a bill of exchange that is drawn for a period of less than 30 days.

Is stamp duty payable on a bill of exchange that is drawn for a period of more than 30 days but less than 12 months?

  1. Yes

  2. No


Correct Option: A
Explanation:

Stamp duty is payable on a bill of exchange that is drawn for a period of more than 30 days but less than 12 months.

Is stamp duty payable on a bill of exchange that is drawn for a period of more than 12 months?

  1. Yes

  2. No


Correct Option: A
Explanation:

Stamp duty is payable on a bill of exchange that is drawn for a period of more than 12 months.

What is the amount of stamp duty payable on a bill of exchange that is drawn for a period of more than 12 months?

  1. 0.03%

  2. 0.04%

  3. 0.05%

  4. 0.06%


Correct Option: A
Explanation:

The amount of stamp duty payable on a bill of exchange that is drawn for a period of more than 12 months is 0.03% of the amount of the bill.

What is the maximum amount of stamp duty that can be charged on a bill of exchange that is drawn for a period of more than 12 months?

  1. Rs. 200

  2. Rs. 300

  3. Rs. 400

  4. Rs. 500


Correct Option: B
Explanation:

The maximum amount of stamp duty that can be charged on a bill of exchange that is drawn for a period of more than 12 months is Rs. 300.

What is the penalty for not paying stamp duty on a bill of exchange that is drawn for a period of more than 12 months?

  1. A fine of Rs. 300

  2. A fine of Rs. 400

  3. A fine of Rs. 500

  4. A fine of Rs. 600


Correct Option: B
Explanation:

The penalty for not paying stamp duty on a bill of exchange that is drawn for a period of more than 12 months is a fine of Rs. 400.

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