BANGALORE, October 14, 2011 Stamp duty evasion cases under the scanner
Staff Reporter Share · print · T+
Duty is being collected on 30 non-registrable documents
Hundreds of cases of stamp duty evasion through improper stamping
(either non-payment of stamp duty or under payment) on non-registrable
documents are coming to light even as the Department of Stamps and
Registration has started reviewing these documents available with
various institutions.
Such evasion, which, officials say, are not wilful, cost the State
exchequer about Rs. 1,500 crore annually.
The department started collecting stamp duty on 30 non-registrable
documents only recently even though the provision for duty collection
was made in 1999 by bringing in an amendment to the Karnataka Stamp
Act.
Section 67B, inserted through the amendment, brings a range of
documents under the ambit of the Act, and the department gave a
serious consideration to the provisions after the Accountant-General's
audit report pointed out deficiency in duty collection.
Non-registrable documents, including those pertaining to courier
services, gun licence, payment of toll on national highways, share
transactions, lease of movable and immovable properties, and gold or
vehicle loans attract stamp duty at varying rates.
These evasions, according to top officials of the department, may have
taken place due to lack of awareness, and many institutions such as
banks, insurance companies and Railways have now agreed to cooperate
with the department in collection of the duty.
“An agreement document that was given to us by Railway authorities
showed that the accord which was to be done on a Rs. 25,000 stamp
paper had been done on Rs. 200 stamp paper,” K. Ramanna Naik, retired
IAS officer who has been roped in as a consultant by the department,
told The Hindu .
“These may not be deliberate evasion, but may be due to lack of
awareness about the existence of law,” he said.
He said the department officials had come across several such “under
stamped” documents, and in many cases non-stamped documents, all of
which could yield substantial revenue to the Government.
Vast scope
While the Inspector-General of Registration and Commissioner of Stamps
B. Shivappa estimated that this provision could yield around Rs. 1,500
crore annually, Mr. Naik said that to start with collection of at
least Rs. 1,000 crore would not be difficult as the scope and ambit
was vast.
According to Mr. Shivappa, the collection of stamp duty on
non-registrable documents was affected earlier due to staff shortage.
“With awareness programmes, both within and outside the department, we
are hopeful of getting good revenue,” he added.
Staff Reporter Share · print · T+
Duty is being collected on 30 non-registrable documents
Hundreds of cases of stamp duty evasion through improper stamping
(either non-payment of stamp duty or under payment) on non-registrable
documents are coming to light even as the Department of Stamps and
Registration has started reviewing these documents available with
various institutions.
Such evasion, which, officials say, are not wilful, cost the State
exchequer about Rs. 1,500 crore annually.
The department started collecting stamp duty on 30 non-registrable
documents only recently even though the provision for duty collection
was made in 1999 by bringing in an amendment to the Karnataka Stamp
Act.
Section 67B, inserted through the amendment, brings a range of
documents under the ambit of the Act, and the department gave a
serious consideration to the provisions after the Accountant-General's
audit report pointed out deficiency in duty collection.
Non-registrable documents, including those pertaining to courier
services, gun licence, payment of toll on national highways, share
transactions, lease of movable and immovable properties, and gold or
vehicle loans attract stamp duty at varying rates.
These evasions, according to top officials of the department, may have
taken place due to lack of awareness, and many institutions such as
banks, insurance companies and Railways have now agreed to cooperate
with the department in collection of the duty.
“An agreement document that was given to us by Railway authorities
showed that the accord which was to be done on a Rs. 25,000 stamp
paper had been done on Rs. 200 stamp paper,” K. Ramanna Naik, retired
IAS officer who has been roped in as a consultant by the department,
told The Hindu .
“These may not be deliberate evasion, but may be due to lack of
awareness about the existence of law,” he said.
He said the department officials had come across several such “under
stamped” documents, and in many cases non-stamped documents, all of
which could yield substantial revenue to the Government.
Vast scope
While the Inspector-General of Registration and Commissioner of Stamps
B. Shivappa estimated that this provision could yield around Rs. 1,500
crore annually, Mr. Naik said that to start with collection of at
least Rs. 1,000 crore would not be difficult as the scope and ambit
was vast.
According to Mr. Shivappa, the collection of stamp duty on
non-registrable documents was affected earlier due to staff shortage.
“With awareness programmes, both within and outside the department, we
are hopeful of getting good revenue,” he added.
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