7. Section 31 of the principal enactment is hereby amended by the insertion, immediately after subsection (1) of that section, of the following subsections : -
| " (1A) Where in the case of the agreement or contract referred to in subsection (1) it appears to the Commissioner of Stamps that, by reason of the fact that no consideration is set forth in such agreement or contract or the consideration so set forth is not capable of being valued in money or by reason of other circumstances, such agreement or contract is in reality for the purpose of bestowing a gift, he may call upon the parties to such agreement or contract to furnish proof to his satisfaction that such agreement or contract is wholly for the purpose of making a bona fide conveyance or transfer and not for the purpose of bestowing a gift. If no such proof is furnished or the proof furnished is in his opinion inadequate, the Commissioner of Stamps shall deem such agreement or contract to be wholly for the purpose of bestowing a gift. |
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| (1B) Where any pecuniary consideration or any consideration capable of being valued in money is set forth in the agreement or contract referred to in subsection (1) and it appears to the Commissioner of Stamps that, by reason of the inadequacy of such consideration or other circumstances, such agreement or contract is not wholly for the purpose of making a conveyance or transfer, the Commissioner of Stamps may call upon the parties to such agreement or contract to furnish proof to his satisfaction that such agreement or contract is wholly for the purpose of making a bona fide conveyance or transfer and not partly for the purpose of making a conveyance or transfer and partly for the purpose of bestowing a gift. If no such proof is furnished or the proof furnished is in his opinion inadequate, the Commissioner of Stamps shall deem such agreement or contract to be partly for the purpose of making a conveyance or transfer and partly for the purpose of bestowing a gift. |
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| (1C) The agreement or contract referred to in subsection (1) shall,-
| | (a) if such agreement or contract is deemed by the Commissioner of Stamps to be wholly for the purpose of bestowing a gift, be charged with such duty, to be paid by the grantee or transferee, as is chargeable,-
| | | (i) where such agreement or contract is in respect of a business, on a gift of a value equal to the net value of that business added to the amount, including accrued interest, due on mortgage debts charged on the immovable property of that business; |
| (ii) where such agreement or contract is in respect of a share in a business, on the net value of that share added to such part of the amount, including accrued interest, due on mortgage debts charged on the immovable property of that business as is proportionate to that share ; and |
| (iii) where such agreement or contract is in respect of other property, on a gift of a value equal to the value of that property ; |
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| | (b) if such agreement or contract is in respect of property referred to in any of the sub-paragraphs (i) to (vi) of paragraph (3) of item 23 in Part I of Schedule A and is deemed by the Commissioner of Stamps to be partly for the purpose of making a conveyance or transfer and partly for the purpose of bestowing a gift, be charged with duty equal to the aggregate of-
| | | (i) the duty which is in respect of such part of the agreement or contract as is deemed by the Commissioner of Stamps to be for the purpose of making a conveyance or transfer and which shall be chargeable under paragraph (3) of item 23 in Part I of Schedule A on a transfer of such property for the consideration set forth in the agreement or contract, and |
| (ii) the duty which is in respect of such part of the agreement or contract as is deemed by the Commissioner of Stamps to be for the purpose of bestowing a gift and which shall be chargeable as on a gift of a value equal to the difference between the amount on which duty would be chargeable if the agreement or contract were wholly for the purpose of making a conveyance or transfer and the amount or value of the consideration set forth in the agreement or contract; and |
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| | (c) if such agreement or contract is in respect of a business and is deemed by the Commissioner of Stamps to be partly for the purpose of making a conveyance or transfer and partly for the purpose of bestowing a gift, be charged with duty equal to the aggregate of-
| | | (i) the duty which is in respect of such part of the agreement or contract as is deemed by the Commissioner of Stamps to be for the purpose of making a conveyance or transfer and which shall be equal to such part of the amount of the duty chargeable under sub-paragraph (vii) of paragraph (3) of item 23 in Part I of Schedule A on a transfer of the said business as bears to that amount the same proportion as the amount or value of the consideration set forth in the agreement or contract bears to the aggregate of the net value of the said business and the amount, including accrued interest, due on mortgage debts charged on the immovable property of the said business, and |
| (ii) the duty which is in respect of such part of the agreement or contract as is deemed by the Commissioner of Stamps to be for the purpose of bestowing a gift and which shall be chargeable as on a gift of a value equal to the difference between-
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Sri Lanka Consolidated Acts