E-Stamping: Easy, Cost-Effective Way To Pay Stamp Duty

By Jay Dee Infra In Stamp Duty No comments

E-Stamping: Easy, Cost-Effective Way To Pay Stamp Duty

If certain transactions take place, the law requires you to pay stamp duty to the central or state government. In real estate, one has to pay stamp duty on property purchase and renting.  And there are three in which you can do this.

Using papers bearing impressed stamps (non-judicial stamp paper): This is the traditional way of procuring stamp papers and getting the work done at the respective sub-registar’s office.

Using a franking machine: You submit an application to an authorized bank. The document for which stamp duty is to be paid is printed on plain paper (before the parties sign it) and a stamp is affixed on the paper, indicating the value of the stamp duty.

It’s a quick method, especially if you want to pay in cash or through a demand draft. However, franking machines are not available at all bank branches and they, too, have their franking quota.

Using the e-stamping facility: The computerised mechanism that ensures everything is done within minutes allows third-party verification.

Generating an e-stamp

Stock Holding Corporation of India (SHCIL) is the nodal agency responsible for implementation and maintenance of records for e-stamping. The e-stamping facility is available in states like Karnataka, Delhi & National Capital Territory, Gujarat, Maharashtra, Assam, and Tamil Nadu.

SCHIL has tied up with various banks which act as authorised collection centres for it. You can pay the stamp duty in cash, cheque, bank draft, or through national electronic fund transfer (NEFT). Only if the payment is made via cheque or NEFT, the stamp certificate is received after the SHCIL receives the money.

After the payment has been realised by the bank, a preview copy of the e-stamp is given to the applicant. It is important to check all the particulars carefully, as a cancellation attracts roughly 10 per cent of the stamp duty charges.

The final e-stamp is issued after the preview copy has been signed by the applicant. This certificate must be attached to the documents that are being registered.

How’s it different?
E-stamping has two additional features that franking does not have, an article number and a property description.

The article number is represented by the transaction for which you are paying the duty. In the case of property description, mentioning the address is a must.

For other agreements, a description of the transaction will suffice. Besides, each e-stamp carries a unique identification number (UIN) which is critical for third-party verification.

If anyone wants to verify the details of e-stamp, this can be done by logging in and entering details like UIN, stamp duty type, certificate issue date and session code.

Cost advantage
E-stamping is convenient and easy on pocket. For example, many a time we end up purchasing the stamp paper of a higher denomination if the exact value is unavailable.

Although the exact amount can be paid by franking, an additional charge is levied by banks for the service. If you opt for e-stamping, you have to pay only the stamp duty, without any additional charge.

However, e-stamping has a limitation. A duplicate copy of an e-stamp cannot be issued. So, if it’s lost, you have no other option but to pay the duty again.

Source: Propguide