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Stamp duty on 17 items set for steep hike in Punjab

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Chandigarh, Oct 17 (PTI) Stamp duty on 17 items is set to increase steeply in Punjab as the state government Wednesday approved an ordinance to amend a law to pave way for revision of rates with a view to mobilising additional resources.

The Punjab Cabinet Wednesday approved an ordinance to  amend Schedule 1-A of the Indian Stamp Act, 1899, to enable  increase in the stamp duty rates.

Stamp duty rates for 17 items of the 65 items in Schedule 1-A stand to double following the amendment, which the Cabinet found to be essential to boost the revenue receipts of the state, an official spokesperson said here.

There are 65 items in the Indian Stamp Act, 1899 on which stamp duty is levied, out of which stamp duty has been revised in the Cabinet only on 17 items, said spokesperson.

Among items on which the stamp duty has been hiked are  adoption deed, affidavit (including an affirmation or  declaration in the case of persons by law allowed to affirm or  declare), agreement or memorandum of an agreement, relating to  sale of a bill of exchange, relating to the sale of a  government security or share in an incorporated company or  other body corporate, relating to the sale of immovable  property, article of association of a company, when the  authorized capital of the company does not exceed one lakh. Punjab currently raises Rs 50 crore from stamp duty,  which would go up by Rs 100-150 crore with the increase in  rates.

The Cabinet found it essential to hike the stamp duty  on 17 items in order to boost the revenue receipts of the  state.

However, the stamp duty on registration of property  remains untouched.

The Cabinet, under the chairmanship of Chief Minister  Capt Amarinder Singh, noted that the new rates were higher  than those of neighbouring Haryana but found it imperative to  increase the rates to generate the much-needed revenue for the  state.

The Cabinet also noted that the last revision in the rates was done in 2009, the spokesperson said. The ordinance would now be sent to the Legal and Administrative Affairs Department for its finalization and later to Punjab Governor for its approval. PTI SUN CHS MR MR

Disclaimer: This story has not been edited by BW staff and is auto-generated from a syndicated feed.


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