Stamping: Documents in Construction Contract

Stamp Act 1949

·        Section 52

Document (also known as “instrument”) chargeable with duty (but not duly stamped) shall not be adduced as evidence ( inadmisible), registered, or authenticated by any public officer.

See:  Joginder Kaur & anor v. Sohan Singh & anor [1984] 2 MLJ 54.

·        Section 41

All instruments shall be stamped before or at the time of execution.

See:  Navaradnam v. Suppiah Chettiar [1973]1 MLJ 173.

“execution” mean “signature” or “made under seal” – Section 2.

·        Section 47 & 47A

Unstamped or insufficienly stamped instrument may be stamped after execution on payment of the unpaid duty but with penalty of RM25 or four time the amount of the deficient duty (whichever sum be the greater).

·        Section 33

Duty by whom payble.

a.           by the party specified in the agreement; or

b.           if not stated, THIRD SCHEDULE of Stamp Act 1949 applicable eg.:

	Instruments	Person liable to pay duty
(a)	agreement	The person by whom the instrument is first executed.
(b)	bond	The abligor or other person giving the security.

·        “Stamp duty”

Section 7 – Payment shall be indicated on such instrument by means of an adhesive stamp (and shall be a revenue stamp).