BANGALORE: Contrary to public perception, the Stamps and Registration Department of Karnataka, is authorised to impose a penalty on those failing to pay stamp duty on documents that need not be registered.Following an audit conducted by the accounting general of the department, the Inspector General of Registration and Commissioner of Stamps announced that it is mandatory for citizens to pay stamp duty also on documents like the acknowledgement of debt, bill of exchange, sale agreements, share certificates, lease deeds in cases of both movable and immovable properties etc. While the registration of these documents is optional, paying stamp duty is mandatory.“We realise that agencies like the BMTC or the zilla panchayat often offer land on lease but do not pay stamp duty. The accounting general, has issued specific directions to recover stamp duty that is being evaded,” said D Nageshu, Deputy Inspector General of Registration. He added that the department is obligated to impose a penalty of up to six months of imprisonment and up to 5 times the amount of deficit stamp duty under Section 59 and 67 B of the Karnataka Stamp Act, 1957.Two years back, it is alleged that the department conducted an audit of stock exchanges that had managed to evade stamp duty and since then the officers have been directed to ensure the recovery of stamp duty. On July 7, a specific post of a Director General was created to ensure the enforcement of this section of the Act.“We need to create more awareness about the provisions under the Karnataka Stamp Act, 1957 and ensure that citizens are aware that they could be penalised if they fail to follow the law,” said D Nageshu.
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