What Is Stamp Duty?

All set to make an agreement? Well, whatever agreement you are planning to make, you will need the one thing that all agreements require in common – a Stamp Paper. Don’t you need one? Irrespective of what’s the agreement about, to make it legally valid it should be executed on a stamp paper of requisite value. Not only agreements but also various affidavits, deeds, certificates, bonds, etc need to be executed on stamp papers to make them legitimate. So how do you get Stamp Papers?

Stamp Duty is the tax levied on the legal acknowledgement of documents. According to the law, it is mandatory to pay stamp duty to the Central/State Government when certain transactions happen. Such transactions include lease agreement, buying and selling of property, business agreements, loan agreements, power of attorney, affidavits, AOA, MOA, Indemnity Bond, Mortgage, Gift Deed, etc.

The value of stamp duty is either fixed or varies with the value of property/instrument under question. The amount of stamp duty to be paid for a particular transaction differs from state to state. The Indian Stamp Act, 1899, is applicable for states which do not have their own Stamp Act.

e-Stamping is a computer-based application and a secured way of paying non-judicial stamp duty to the government. e-Stamping is currently operational in the statesof Haryana, Odisha, Gujarat, Karnataka, NCR,Delhi, Maharashtra, Assam, TamilNadu,  Rajasthan, Himachal Pradesh, Andhra Pradesh, Uttarakhand, and the union territories of Dadra & Nagar Haveli, Daman &Diu Puducherry, Jharkhand and Uttar Pradesh, West Bengal. The prevailing system of physical stamp paper/franking is being replaced by E-stamping system. Stock Holding Corporation of India Limited (SHCIL) has been promoted by all India public financial institutions and insurance majors. SHCIL is known for its security, integrity, widenetwork and focus on technology. SHCIL is the only Central Record Keeping Agency (CRA) appointed by the Government of India. The CRA is responsible for user registration, Imprest Balance Administration and overall E-Stamping application operations and maintenance. CRA will appoint ACCs who will issue certificates to the clients at their counters.

How To Pay Stamp Duty?

There are 3 different ways of paying stamp duty, which include-

1. Buying Stamp Papers
   • Traditional Stamp Papers
   • E-Stamp Papers
2. Franking
3. Adhesive Stamps

In all these ways, the purpose is the same, i.e., to pay stamp duty to the government to make a document legally enforceable.

1. E-Stamp Papers and Traditional Stamp Papers

These are non-judicial stamp papers purchased as a way to pay Stamp Duty to the government. Traditional or Physical stamp papers can be purchased from stamp vendors. E-stamping is a computer based application and E-Stamps are available in certain banks and co-operative societies. In either case, stamp paper has to be bought and then the agreement has to be typed on it.

Details You May Need While Buying Stamp Paper

These are the details you may be asked for while buying stamp paper –

• First Party Name
• Second Party Name
• Address
• Document Name
• Stamp Paper Value

Details Included In E-Stamp Paper

The details that an e-stamp paper generally contains are:

• Certificate No.
• Certificate issued date
• Account reference
• Unique Doc Reference
• Name of the e-stamp purchaser
• Description of document
• Description
• Consideration Prince
• Name of First Party
• Name of Second Party
• Name of Stamp Duty Payer
• Stamp Duty paid

2. Franking

Franking refers to a technique of making a mark on a document indicating that the stamp duty for the transaction has been paid. Franking machines are installed in many Sub-Registrar offices. After the receipt of requisite stamp duty, the authorised officer franks the document and returns to the applicant. Most states allow you to purchase the Stamp paper of same value if you find it inconvenient to get the document franked.

3. Adhesive Stamps

Adhesive stamps are convenient labels that can be pasted on documents for you have paid the stamp duty. They are adhesive stamps for postal and non-postal usage. For legal documents, affixing of postal stamps is not valid. So, make sure to choose the right one.

In any way of paying stamp duty, you will first have to make sure about the required value of stamp duty that you are required to pay for a certain transaction. Only then you should proceed to buy stamp paper or adhesive stamps or opt the method of franking.

The easy way to get stamp papers

Now, you can buy stamp papers by placing a request online, without stepping out of your house. All you have to do is to fill in your details in the form below, choose the required stamp paper value and place an order.

There are ACC authorized centers from respective state governments. In case of karnataka, commissioner of stamps issues license to co-operative and credit co-operative societies, who are authorized to sell e-stamps. There are various online e-commerce portals e-stamp and rental agreements which sell e-stamps online and deliver them at the door step for one or more states.  Document bazaar is one of the online portals.

Benefits:

• e-Stamp Certificate can be generated within minutes
• e-Stamp Certificate generated is tamper proof
• Authenticity of the e-Stamp certificate can be checked through the inquiry module
• e-Stamp Certificate generated has a Unique Identification Number
• Specific denomination is not required.
• e-stamp certificate can be checked by any person through recommended site