Stamp papers are used mainly in executing agreements, bonds and other legal instruments.
Examples of some uses of stamp paper
E Stamping is a new method implemented by Government of India to issue stamp certificates. Though it is called E-Stamping one has to still go to local ACC. Local ACC is the Authorised Collection Center.
If you want e Stamp certificate delivered it to you Indolegal.com provides forwarding service currently in Bangalore. You have to order online and provide authorization to represent you to buy E Stamping certificate and forward it to you.
In order to get a e-stamp certificate you still have to go to a local e-stamping location or Sub-Registrar office.
As the system is new there are some states that early adapters of this new process. Some of the cities include Delhi, Bengaluru, Chennai, Mumbai etc.
States include Tamil Nadu, Rajasthan, Himachal Pradesh, UT of Dadra & Nagar Haveli , Gujarat, Karnataka, Assam, Gujarat , Maharashtra, Uttarakhand, UT of Daman & Diu and Puducherry etc.
Though E-stamping is implemented in these states the government has not stopped the conventional stamp paper usage.
Out of the first few implementers of e-stamp Delhi was the first to implement in many denominations including Rs 500/- stamp paper.
Stamped paper is a piece of paper which already has a pre-printed stamp Duty on it. Stamp paper is used by government to collect tax in the form of Stamp duty. Stamp papers are different from postal stamps and are commonly sold at Sub-Registrar offices, Stamp vendors in India.
Who ever tried to buy a property in India may have come across what is stamp paper. Paper stamp paper system was introduced several years ago before India got independence.
When a agreement is written on a stamp paper it is written on the bottom part as the top part of the document has a pre-printed stamp duty. The pre-printed stamp is engraved for security purposes and tamper proof.
Collection of stamp duty revenue using stamp paper is a old method dating back to almost 500 year old. This method of revenue collection then was introduced by British colonies in some countries.
The existing stamp act still has its basis on The Indian Stamp Act 1899 with many amendments implemented in later years. The Amendments are done by both Central government and individual state governments.
Government is slowly moving into E-stamp papers. E- stamping system is already implemented in many states and will be implemented in other states in a phased approach down the line.
There are many draw backs in non judicial paper stamp paper system. Many cases have come up where people abused the system. There is no unique number on a paper stamp paper and could not be verifed.
Stamp papers are supplied by government and many times they are out of stock and shortage of supplies due to which people have to wait or pay higher price to some brokers to get them.
To meet the gaps and address some of the situations government is introducing e-stamping in many states.