PEMUNGUT DUTI SETEM v. GTP NETWORK SDN BHD
COURT OF APPEAL, PUTRAJAYA
LIM CHONG FONG JCA
MOHD FIRUZ JAFFRIL JCA
NADZARIN WOK NORDIN JCA
[CIVIL APPEAL NO: B-01(NCvC)(A)-687-11-2024]
6 JULY 2026
[2026] CLJ JT (12)
Abstract – An agreement for the sale of movable property, in this case telecommunication towers and the associated equipment, that constitutes a capital asset rather than trading stock, ie, goods, wares or merchandise, is treated as a 'conveyance on sale' pursuant to s. 21(1) of the Stamp Act 1949 ('Act'). It therefore attracts ad valorem stamp duty under item 32(a) of the First Schedule of the Act, rather than nominal duty under item 4, irrespective of whether the physical transfer or completion date is deferred to the future.
REVENUE LAW: Stamp duty – Assessment – Asset purchase agreement – Acquisition of telecommunication towers and associated equipment – Instrument described assets as chattels and moveable assets – Whether agreement 'conveyance on sale' – Whether telecommunication towers constituted 'goods, wares or merchandise' – Whether assets formed part of capital assets or trading stock – Whether transaction attracted ad valorem duty or nominal duty – Stamp Act 1949, ss. 2, 21(1), First Schedule, items 4(a) & 32(a)
STATUTORY INTERPRETATION: Definition – 'Conveyance on sale' – Stamp Act 1949, ss. 2 & 21(1) and First Schedule, item 32(a) – Instrument executing sale of movable property and capital assets – Whether contract or agreement for sale of movable capital assets falls within statutory definition
WORDS & PHRASES: 'Conveyance on sale' – Stamp Act 1949, s. 2 – Instrument executing sale of movable property and capital assets – Whether executing ultimate transfer of title satisfied definition – Whether actual completion date material to interpretation
WORDS & PHRASES: 'Goods, wares or merchandise' – Stamp Act 1949, s. 21(1) and First Schedule, item 4(a) – Whether encompassing telecommunication towers and associated equipment – Whether phrase restricted to trading stock or inventory – Whether applicable to movable capital assets
