Monday, June 15, 2009

E-STAMP ARRIVES

E-STAMP ARRIVES
Finally, the government has woken up to the infinite possibilities the internet offers in simplifying revenue transactions. Discover it!
S Kushala | TNN

Bangalore: Starting August, you don’t have to queue up at the sub-registrar’s office to pay stamp duty while registering your property. Nor will your property title be vulnerable to misuse.
The stamps and registration department will catch up with technology and implement the much-awaited e-stamping project.
Don’t Wait In Long Queues To Pay Stamp Duty. You Have A Better Option!
What does e-stamping do?
You don’t have to stand forever in the bank to purchase stamp papers. Now, you can go to an agency, which is a onestop shop where stamp duty can be paid, while the stamp paper is electronically generated and the deed is read on it. And your title, in the form of an e-stamp certificate, is locked into the system, which is tamperproof. With this certificate, you go to the sub-registrar’s office to get the title registered by paying 1% as registration fee.
Why e-stamping?
To prevent paper- and process-related fraudulent practices, leakage of government revenue, store information in electronic form and build a central data repository for easy verification.
The e-stamp certificate that replaces stamp paper is tamper-proof with its three security features — 2-dimensional barcode, watermark and micro-digiting. Once the certificate is issued, security systems are such that the document cannot be copied.
The 2-D barcode captures the data and any attempt to fudge the original certificate will yield certificates having ‘copy’ written on it.
The government has tied up with the Stock Holding Corporation of India (SHCI), an intermediary that in turn appoints agents to work on its behalf. While SHCI will be paid a commission of 0.65% per stamp paper, the agents — could be post-offices, banks or chartered accountants — will get 0.15% from SHCI.
How does it work?
The agents have to register with SHCI and will be equipped with computers, printers, internet connection and other related infrastructure. They will collect stamp duty — cash, ECS or any other mode of electronic transfer of funds, which will be user-friendly.
SHCI will remit the consolidated amount to the prescribed head of the account of state, before closing of the second working day.
How is an e-stamp certificate issued?
On payment of stamp duty, authorized agencies enter information provided by the applicant on the electronic stamp paper. Download the e-stamp certificate and take a printout, sign with date and official seal. The ink to be used in the e-stamp certificate printer is a non-washable permanent black. With this certificate, the applicant can go to the sub-registrar’s office.
About e-stamping
E-stamping is an electronically generated impression on paper to denote payment of stamp duty, and the document so generated is called an e-certificate. After the Telgi fake stamp paper scam broke out, the government authorized only nationalized banks to sell stamp papers of denominations of Rs 20, Rs 50 and Rs 100.
Users and applications
Major users: Banks and financial institutions for pledge documents, mortgage papers, indemnities and affidavits. Travelling vendors and people living in small villages whose requirements are small and occasional.
Used for: Property documents will mortgage deed and gift deed. Chartered accountants use it for incorporating companies, registering firms, preparing indemnities and affidavits.

1 Comments:

At Wednesday, June 24, 2009 at 6:01:00 PM GMT+5:30, Blogger Nalini said...

The Govt. of Karnataka has come out with a unique way of issue of Stamp papers for the benefit of General public through authorizes agencies

However the commission of 0.15% commission (as noted in your blog) for these agency is too low. The vending agency will have to invest on PC, Digital Printer, Bar code reader, Internet connection, furniture, office space, staff to issue e-stamp papers, pay the statutory taxes to the Govt, deposit security deposit with the Govt, maintain proper accounts, and also lastly print the e-stamp paper within the prescribed working hours i.e., 10:00 AM to 5:00 PM and deposit the money collected on the next day to the Govt’s account. Is 0.15% commission is sufficient?

Whereas the SBM while they issue the Stamp papers collect Rs. 5/- per sheet issued, which amounts to 5% for Rs. 100/- stamp paper, 10% for Rs. 50/- stamp paper and 25% for Rs. 20/- stamp paper. Even with the above commission they are grumbling to issue the Stamp papers. (SHCI will be paid a commission of 0.65% per stamp paper, the agents — could be post-offices, banks or chartered accountants — will get 0.15% from SHCI.) Whereas the Govt of Karnataka expects the vending agency to issue e-stamp paper with a meager 0.15% of commission. How is this possible?

I was a Stamp vendor in the earlier days. As a ‘B’ Class Stamp vendor I was getting 3% commission on the sale of stamp papers and I was selling all denominations, still I was able to make reasonable profits after paying Income tax etc., Investment was only on purchase of Stamp papers and was selling them without much infrastructure.

Therefore I hereby request the Govt authorities to review the commission to paid to the vending agency and also issue the agency to the earlier stamp vendors, as they have more experience in sale of stamp papers and maintenance of accounts etc.

 

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