Stamp duty plays a pivotal role in legal documentation across India, ensuring validity in court. Each state has its own stamp duty rates and regulations, making it crucial for professionals to stay updated. This article provides an overview of stamp duty types, including the convenience of e-Stamp Papers, and highlights the necessity of accurate payment to avoid penalties and legal disputes.
Background:
Stamp duty holds great significance in legal agreements and understandings. Stamped documents can only be used in court if the correct amount of stamp duty has been paid; otherwise, adjudication and payment of the difference plus penalty to the revenue department are required.
Each state in India has its own stamp acts and varying stamp duty rates. Professionals must stay informed about the stamp duty rates for every transaction. To prevent any misunderstandings down the line, it’s essential to ensure the accurate payment of stamp duty for every document.
Type of Stamp papers:
- Online e-Stamp Paper
It’s now possible to acquire Stamp Papers online effortlessly by simply clicking a few times on your mobile or desktop. e-Stamp Papers are available in the following states and e-Stamping is a computer-based application and a secured way of paying Non-Judicial stamp duty to the Government.
| Sr.No | State names | Government Website link | Stock Holding Website Link |
| 1 | Assam | E-stamping | Inspector General of Registration | Government Of Assam, India | Stock Holding Corporation of India Limited (SHCIL) |
| 2 | Chattisgarh | E Stamp Certificate Format – Government of Chhattisgarh, India (cgstate.gov.in) | Stock Holding Corporation of India Limited (SHCIL) |
| 3 | Union Territory of Chandigarh | Login Form (chd.nic.in) | Stock Holding Corporation of India Limited (SHCIL) |
| 4 | UT of Dadra and Nagar Haveli, | EODB Single Window Portal : Dadra and Nagar Haveli and Daman and Diu (dddgov.in) | Stock Holding Corporation of India Limited (SHCIL) |
| 5 | UT of Daman and Diu, | Civil Registrar – Cum – Sub – Registrar » U.T. Administration of Dadra and Nagar Haveli and Daman and Diu | Stock Holding Corporation of India Limited (SHCIL) |
| 6 | Uttar Pradesh | Official Website of Uttar Pradesh Housing & Development Board,India / e-Stamping (upavp.in) | Stock Holding Corporation of India Limited (SHCIL) |
| 7 | NCT of Delhi | Collector of Stamps | Department of Revenue (delhi.gov.in) | Stock Holding Corporation of India Limited (SHCIL) |
| 8 | Gujarat | Garvi (gujarat.gov.in) | Stock Holding Corporation of India Limited (SHCIL) |
| 9 | Himachal Pradesh | 1424767933.pdf (himachal.nic.in) | Stock Holding Corporation of India Limited (SHCIL) |
| 10 | Jammu and Kashmir | Stamps and Fee | Department of Registration | Government of J&K (jk.gov.in) | Stock Holding Corporation of India Limited (SHCIL) |
| 11 | Jharkhand | NGDRS : National Generic Document Registration System (jharnibandhan.gov.in) | JharniBandhan – To Verify stamp paper details
Stock Holding Corporation of India Limited (SHCIL) |
| 12 | Uttarakhand | E – Stamping: Directorate of Treasuries, Pension and Entitlements (uk.gov.in) | Stock Holding Corporation of India Limited (SHCIL) |
| 13 | Karnataka | Home – Department of Stamps and Registration (karnataka.gov.in) | Stock Holding Corporation of India Limited (SHCIL) |
| 14 | Puducherry | Registration Department | Puducherry District | India (puducherry-dt.gov.in) | Stock Holding Corporation of India Limited (SHCIL) |
| 15 | Punjab | Stamp and Registration | Official Website of Department Revenue,Rehabilitation and Disaster Management, Government of Punjab,India | Stock Holding Corporation of India Limited (SHCIL) |
| 16 | Rajasthan | Epanjiyan Rajasthan, Registration & Stamps [IGRS] | Stock Holding Corporation of India Limited (SHCIL) |
| 17 | Tamil Nadu | Department of Treasuries and Accounts, Tamil Nadu, India (tn.gov.in) | Stock Holding Corporation of India Limited (SHCIL) |
| 18 | Haryana | Egras (egrashry.nic.in) | Stock Holding Corporation of India Limited (SHCIL) eGrasHry – To Verify details |
| 19 | Odisha | e-Stamping_engodia.pdf (igrodisha.gov.in) | Stock Holding Corporation of India Limited (SHCIL) |
| 20 | Tripura | Egras (tripura.gov.in) | Stock Holding Corporation of India Limited (SHCIL) |
| 21 | Andhra Pradesh | E-Stamp ACC List – IGRS (ap.gov.in) | Stock Holding Corporation of India Limited (SHCIL) |
| 22 | Maharashtra | Department of Registration & Stamps – Government of Maharashtra (igrmaharashtra.gov.in) | Stock Holding Corporation of India Limited (SHCIL) |
| 23 | Telangana | e-STAMPS (telangana.gov.in) |
2) Physical Stamp Paper
These Stamp Papers are only available through offline vendors and the customer has to visit and get it offline while at eDrafter you can order it online as easy as you get e-Stamp Paper. Physical Stamp Papers are available in following states:
| States | Website Link |
| Maharashtra | Department of Registration & Stamps – Government of Maharashtra (igrmaharashtra.gov.in) |
| Telangana | e-STAMPS (telangana.gov.in) |
| Tamil Nadu | Department of Treasuries and Accounts, Tamil Nadu, India (tn.gov.in) |
| West Bengal | The West Bengal Stamp Rules, 1994 |
Listed below are the transactions that necessitate the payment of stamp duty, along with their respective rates.
Stamp duty vendors for online services:
Below mentioned vendors will arrange the stamp papers for you at the nominal service charges. They will try to reduce your time for procuring the stamp papers from any states in your figure tips.
| Vendor name | Website link |
| Edrafter Services | https://www.edrafter.in/ |
| Esahyak | https://esahayak.io/ |
| Doxguru | https://www.doxguru.com/ |
| Stock Holding Corporation of India Limited | https://www.shcilestamp.com/# |
Stamp Duty rates
| Nature of Transaction | Stamp Duty as per Indian Stamp Act | As per Maharashtra Stamp Act | As per Delhi Stamp Act | As per Karnataka Stamp Act |
| Issue of Debenture | 0.005% | |||
| Transfer and Re-issue of debenture | 0.0001%. | |||
| Issue of security other than debenture | 0.005% | |||
| Transfer of security other than debenture on delivery basis; | 0.015% | |||
| Shareholders Agreement | ||||
| Share Purchase Agreement | 0.01% | Rs.1 for every Rs.10,000 of the value of the security, maximum of Rs.1,000 | ||
| Share Subscription Agreement | 0.2% of the agreed, if the amount exceeds Rs.10 Lakhs | Rs.1 for every Rs.10,000 of the value of the security or share subject to a maximum Rs.1,000 | ||
| Debenture Subscription Agreement | 0.2% of the amount agreed provided the amount exceeds Rs.10 Lakhs | Rs.50 and Haryana Rs.100 |
Below are few FAQ related to Stamp Duty:
Q1 Whether stamp duty is applicable on bonus issue of shares?
Answer: In case of bonus issue, there is no consideration which means bonus shares are issued free to existing shareholders. Section 21 of the Amended Indian Stamp Act read with sub-section 16B of Section 2 clearly indicates that stamp duty is to be collected on market value which is based on price or consideration involved.
Conclusion: Navigating stamp duty requirements in India demands precision and awareness due to varying rates and compliance procedures across states. The adoption of e-Stamp Papers enhances accessibility and security, streamlining the process for stakeholders. However, understanding the specific rates applicable to different transactions remains essential to prevent complications and ensure legal validity in all dealings.
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