Stamp duty on Government mining leases may be computed on...

Stamp duty on Government mining leases may be computed on anticipated royalty where the value of mineral extraction cannot be determined when the lease is executed. The notes distinguish dead rent, a fixed minimum return based on leased area, from royalty, which depends on the quantity of minerals extracted. The proviso to Section 26 addresses leases in which royalty constitutes rent or part of rent and permits the Collector to estimate anticipated royalty where the Government is the lessor. The relevant notification and statutory Form K are described as requiring stamp duty to be calculated using the highest applicable basis for royalty, rather than dead rent alone.