MUMBAI: From December 23 and it will be mandatory for citizens to pay property stamp duty and registration fees through electronic secured bank treasury receipt (eSBTR)-an online payment service available round-the-clock.
The decision to implement the online system from December 23 was taken by inspector general of registration and stamp duty (IGR) S Chockolingam after the department unearthed fresh cases of bogus franking of government stamps worth crore of rupees.
“The online system is more secure and less cumbersome,” said Sanjay Kolte, deputy IGR.
Under this system, a customer can log onto the website of the authorized bank, click the link for payment of stamp duty/registration fees, enter the necessary details and pay the duty through the internet banking account. With the printout as proof of the online payment, the customer can walk into the nominated branches of the bank to get the eSBTR. The eSBTR is a receipt with security features, which has been designed by India Security Press, Nashik.
“Alternatively, there is also a facility to make the data entry online and make the payment in bank branches. The sub-registrar then has to register the documents attached with the receipt,” Kolte added.
IDBI Bank is the first bank in the country to be associated with the eSBTR project. “With Rs 16,000 crore, Maharashtra leads all other states in revenue collection through stamp and registration. Even during recession the revenue collection through stamp duty and registration witnessed healthy growth,” said Rajesh Mehta of Raha Realtors.
What is Franking?
It is a method of paying stamp duty by means of a franking machine. For franking, the instrument is to be printed on plain paper and before the parties execute the instrument, it is taken to an authorized bank or other authorized franking agency where an application form is to be submitted, stamp duty is to be paid and a stamp is affixed on the paper indicating the value of the stamp duty.
The benefit of availing franking as a mode of payment of stamp duty is that it is quick (in case of payment by cash/demand draft).
It, however, has a few drawbacks- most banks accept only cash as a mode of payment for smaller amount and instruments such as pay order for a higher amount. Also, there are no uniform rules for these authorized banks/post offices. Franking is usually done during the limited working hours of the banks and post offices.