Everything About Stamp Duty In Andhra Pradesh
You can make PAN cards and Aadhaar Cards without an agent’s help, but when it comes to Legal Documents – it’s not so easy! Many of us don’t even know where to start. “What’s this I heard about Stamp Duty?”, “What is Registration?”, “Why are the agents charging so much just to give the documents of MY property from a registration office?” “Which of this is accounted for and which isn’t?” All these questions pop into your head and rightfully so; if not, it merely shows a sense of apathy towards your spending habits. And if you’ve laid this weakness bare open for everyone to see, your money will be up for grabs!
It is every citizen’s duty to pay Stamp Duty when asked of them and if you don’t understand the mechanisms surrounding this revenue tool, chances are, either drafted legal documents will gather dust or you simply run into legal disputes. Not every lawyer will treat your drafted legal documents with a labor of love, nor would he/she give you the right advice on where or from whom to buy Stamp Papers. For this is why LegalDesk.com is here – we equip you with the knowledge of where every penny of your hard earned money will go and also work towards bringing Stamp Papers and Legal Instruments to your doorstep.
What Is Stamp Duty?
Stamp Duty essentially is a revenue tool exercised on legal documents, in order to turn a document into an instrument, one which will stand the test of validation in court and or any other government institution.
Usage of Stamp Duty is also done for the purpose of establishing, regulating, controlling or conducting the business of sale or purchase of goods and also to record transactions. This is why Stamp Duty charges are applicable to trading of goods or the export-import business. But apart from its functionality in the business sector, we mainly focus on bringing your attention to the applicability of Stamp Duty charges to legal documents. A document can be recognisable in a court of law if and only if the instrument in question has paid the Stamp Duty, without which, the document can be dismissed when appealed for as an evidence in the court of law. For a contract like Rental Agreement, Sale Deed, Power of Attorney or an Affidavit to be qualified in the eyes of the law, the first and foremost of prerogatives would be to pay State-wise stipulated Stamp Duty charges. Like Karnataka, Delhi, Maharashtra and Gujarat, Andhra Pradesh is yet to acquire it’s own Stamp Duty Act. However, this doesn’t exclude the State from having a schedule/table on the various Stamp Duties it is entrusted to charge the people as applicable by the Indian Stamp Act, 1899.
How To Pay Stamp Duty In Andhra Pradesh?
1.From Licensed Stamp Vendors or Treasury
Stamp Vendors licensed to sell Stamp Papers are the ones you should seek out to in order to ensure your document falls under the purview of legality. This is, however, a risky payment method as the sellers, very often, aren’t licensed and hence, may sell counterfeit Stamp Papers. To keep yourself from being a victim to fraudulent activities, always ensure you have the vendor’s name and signature on your copy of Stamp Paper. For Treasury bills and other documents concerning the government can be purchased from the Treasury and it goes without saying that they are safe as opposed to buying from Stamp vendors.
2. Purchasing Adhesive Stamp Papers
Adhesive Stamp Papers can be purchased from post offices, registrar offices or any other government institutions which have franking machines. Once your Stamp paper is printed through a franking machine you can make the payment in the respective office.
3. Check or Demand Draft (DD) through Nationalised or Scheduled Banks
By far this is the safest way of purchasing Stamp Duties as one procures a Demand Draft or pay through a check directly into a bank. The payment you make is recorded and the invoice should act as a testament. If one pays to a bank, then you can skip the necessity of Stamp Paper altogether. The document can now be printed on a plain paper which is as good as any other executed instrument. This method is also applicable to e-Stamp Papers.
Does Your Document Elicit Stamp Duty Payment?
Nearly all legal documents mandate both the registration and payment of Stamp Duties. Through this, the documents cease to be just papers with words printed on them, and instead carry legal and financial implications. Transfer of Title or Transfer of Property documents are rendered void unless the respective Stamp Duties are paid to a Bank or Stamp Vendor. Here are the charges associated with some of the documents in Andhra Pradesh –
| Sl. No. | Nature of the Document | Stamp Duty | Registration Fee | Who Pays The Duty? |
| 1 | Rental Agreement | Stamp Duties on Rental Agreement varies with changes in the value of the property. You can both Create a Rental Agreement as well as calculate Stamp Duty from our portal | The Lessee | |
| (i) Where the lease purports to be for a term of less than one year | 0.4% of the whole amount payable on such lease | |||
| (ii) Where the lease purports to be for a term of not less than one year but not more than five years | 0.4% of the total rent payable on such lease | |||
| (iii) Where the lease purports to be for a term exceeding five years but not more than ten years | 0.4% of the total rent payable on such lease | |||
| 2 | Sale Deed | The Purchaser | ||
| (i) if the property resides within the Municipal Corporations | 4% of the market value of the property | 0.5% of the total market value of the property | ||
| (ii) Property situated in a local area which is part of the Selection Grade or Special Grade Municipality | 4% of the market value of the property | 0.5% of the total market value of the property | ||
| (iii) For any property not falling under (i) and (ii) | 4% of the market value of the property | 0.5% of the total market value of the property | ||
| 3 | Gift Deed | Donor | ||
| (i) In favour of relatives | 1% of the market value of the property | 0.5% of the total market value of the property. With a minimum of Rs. 1,000 to a maximum of Rs. 10,000 | ||
| (ii) Gift for others | 4% of the market value of the property | 0.5% of the total market value of the property. With a minimum of Rs. 1,000 to a maximum of Rs. 10,000 | ||
| 4 | General Power of Attorney | Executor of the POA | ||
| (i) To sell an immovable property; agent being a family member | Rs. 1,000 | 0.5% (minimum of Rs. 1,000 and maximum of Rs. 20,000) | ||
| (ii) To sell an immovable property; agent is outside of the family | 1% of the value of the property | 0.5% (minimum of Rs. 1,000 and maximum of Rs. 20,000) | ||
| 5 | General Power of Attorney (for any other purpose other than selling immovable property) | Rs. 50 | Rs. 1,000 | Executor of POA |
| 6 | Special Power Of Attorney | Rs. 20 | Rs. 1,000 | Executor of SPOA |
| 7 | Partnership Deed | Both parties equally | ||
| (i) where the capital doesn’t exceed Rs. 5000 | Rs. 100 | |||
| (ii) Other Partnership Deeds | Rs. 500 | |||
| 8 | Affidavit | Rs. 10 | ||
| 9 | Simple Mortgage | 0.5 % of the value of the property | ||
| 10 | Mortgage with possession | 2% of the value of the property |
Types Of Stamp Papers
Based on the purpose behind the usage of Stamp Papers, they can be classified as –
- e-Stamp Papers – e-Stamp Papers are all the new rage in the stamping and franking business! Because this is the most safe and convenient way of acquiring a Stamp Duty, it is also the most preferred one. Mostly used for Rental Agreements, these can be applied for through the SHCIL website. Otherwise, if you are looking to create a Rental Agreement, there should be no easier way to procure your Stamp Duty than from LegalDesk.com as we specialize in delivering Stamp Papers home, replete with the instrument printed on the same. Avail our Print and Delivery Service to get yours.
- Adhesive Stamp Papers – Adhesive Stamp Papers are affixed by the proper officer designated to do so. The payment is made to the respective officer in order to have the Stamp Paper of the right denomination to be stuck on your instrument.
- Impressed Stamp Papers – Impressed Stamps as mentioned before are procured from Franking machines, which are mostly found in Post Offices and Registrar Offices.
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