Bill tabled to introduce registration reforms in TN

CHENNAI: Property owners who execute a Power of Attorney outside the family might 'soon' have to pay some extra bucks at the time of registration. Also, the minimum denomination of non-judicial stamp paper in the State might not be less than Rs 100. The aforesaid proposals were among the 'reforms' proposed by the State government which on Monday moved a Bill in the State Assembly to suitably amend the Indian Stamp Act, 1899.

Moving a Bill in the State Assembly, Commercial Taxes and Registration Minister P Moorthy told the House that the rate of stamp duty for most of the instruments have not been revised since 2001 and the cost of printing of physical non-judicial stamp paper have increased manifold times since then. "The government, therefore, have decided to revise the stamp duty for some of the instruments by suitably amending Schedule – I of the Central Act II of 1899," stated Moorthy in the "statement of objects and reasons" of the amendment Bill.

Sources in the state registration department told DT Next that owing to the amendment, payment of stamp duty below Rs 100 denomination would continue to be made available through e-stamping. "Printing a Rs 10 non-judicial stamp paper costs Rs 15. Also, there were difficulties in sourcing low denomination Rs 10 and 20 value stamp papers. Interaction with stakeholders also showed that they were sold at rates higher than the denomination in the market. So, the amendment was mooted to address a whole gamut of the issues," sources explained, pointing out that 75% of stamp duty payment was done directly through e-stamping (RTGS payment). A unit of Stockholding Corporation of India is available in all sub registrar offices.

Payment of Rs 5 stamp duty can also be done using the Point of Sale (PoS) machines available at the registration office, registration department sources added.

The amendment Bill named "Indian Stamp (Tamil Nadu Amendment) Act 2023" also enables fixing of one per cent of the guideline value as stamp duty for a Power of Attorney executed outside the family, while it would continue to be Rs 1,000 within the family. Likewise, the amendment would also enable the government to collect 0.05% (maximum Rs 5 lakhs) as stamp duty for registration of Memorandum of Association of companies.

Stamp duty for registration of MoAs is higher in states like Maharashtra (0.2%), Gujarat (0.5%) and Andhra cum Telangana (0.15%), but it has been very low in Tamil Nadu, registration department sources pointed out.