E-Stamping,Franking,Stamp Paper : Paying Stamp Duty

In our article What is Stamp paper, Stamp Duty? we had talked about what is stamp paper and stamp duty, who pays it,how much to pay,what was Telgi Stamp Paper Scam. In this article we shall see various ways of paying stamp duty such as non-judicial stamp paper,Franking,estamp paper and eSBTR that is used in Maharashtra.

Why do you need stamping?

Certain transactions such as buying, selling or leasing property, power of attorney, business agreements need to be documented, especially those that has a financial aspect to it. But even if you write the agreement details on paper, and have  signed how do you ensure that other party (or relatives of other party) does not back out  or comes back to claim that transaction did not take place.  Many types of documents are only valid if printed on a specific value stamp paper (Rs. 10, Rs. 100, Rs. 500 and so on). The sale of these papers generates revenue for the government and acts as a kind of transaction tax. Paying stamp duty is an essential part of almost any transaction you do in India, from buying or selling a house to setting up a business agreement, all Agreements, Bonds, Powers of Attorney etc .

How to pay stamp duty?

There are three ways to pay stamp duty. However, not all states have all three options available. If all methods are available, all are recognised legally and the choice is with the individuals concerned. These options are discussed in detail in our article Stamp Paper,Franking and e Stamping.

  • Using papers bearing impressed stamps (non-judicial stamp paper)
  • Using the e-stamping facility
  • Using a franking machine

Stamping using Non Judicial Stamp Paper

The most common way to pay stamp duty  is by purchasing non-judicial stamp paper from a licensed vendor. Then, either the details of the transaction is written on the paper or a blank stamp paper is affixed to the agreement documents and signed by the executants, indicating that the stamp paper is an integral part of the documentation.

There are many disadvantages to using physical stamp paper. For instance, it can be purchased only from a licensed vendor and vendors, often, do not keep stamp papers of extremely low value (less than Rs 100) or of extremely high value (over Rs 750). Therefore, for the ease of getting things done, people often resort to buying stamp paper from an unlicensed vendor at the risk of purchasing counterfeit papers. If the stamp duty payable is a large denomination, you will have to buy a number of papers to meet the requirement, making the process even more cumbersome. Image given below shows the document on Rs 100 stamp paper.

Non Judicial Stamp paper

Non Judicial Stamp paper

Franking

You might have seen postal envelopes with the stamp denominations, NOT in actual stamps but sort-of stamped in RED or BLACK (Image below), which includes the postal amount. No separate stamps are to be affixed for such envelopes. This is called as FRANKING, Postal Franking. This is usually adopted for Bulk postings–like magazines, letters from companies to shareholders, etc/

Postal Franking and Franking machine

Postal Franking and Franking machine

Franking of document is similar. You have to submit an application at an authorised bank or a franking agency. The document for which stamp duty is to be paid is printed on plain paper, before the parties sign it, and a stamp is affixed on the paper indicating the value of the stamp duty paid. The major benefit is that it is quick, especially if payment is made in cash or using a demand draft. Sample of franked document from  humlog.net  Stamp Paper Availability in Bangalore is as follows. I used franking when I had to open my locker in he bank.

Stamp Franked on Agreement

The primary drawback is that franking machines are not available at all bank branches. In addition, there are no uniform rules for authorised franking agencies. This could result in difference in rules among states and even among banks within a state. Also, each bank has a franking quota. This means that if the denomination you need is higher than the bank’s quota, the bank should be informed sufficiently early to conclude the transaction.

E Stamping

The Indian government introduced e-stamping to tackle counterfeiting and make the payment of stamp duty easier and glitch free. In fact, in certain states, such as Delhi, all stamp duty needs to be paid through e-stamping. The central government has appointed the Stock Holding Corporation of India Limited (SHCIL) as the Central Record Keeping Agency (c) for all e-stamps used in the country (www.shcilestamp.com). Currently, SHCIL is responsible for everything-from user registration to administration, all e-stamping applications and maintenance of records. SHCIL has also designated authorised collection centres, or ACCs-scheduled banks-that will issue certificates to users.  Some of the states where e-Stamping is available are : KARNATAKA( Only for Karkala ),HIMACHAL PRADESH,NCT DELHI,GUJARAT,DAMAN & DIU,DADRA & NAGAR HAVELI,UTTARAKHAND,RAJASTHAN,TAMIL NADU,PUDUCHERRY,ASSAM,UTTAR PRADESH,CHHATTISGARH,JHARKHAND & JAMMU & KASHMIR.  Electronic-stamping is not available in Maharashtra as the licence for SHCIL was not renewed by the state. but one can use electronic secured bank treasury receipt (eSBTR)-an online payment service.

Estamp paper

Estamp paper

The benefits of using e-stamps: It can be generated within minutes and is tamper-proof and all data is saved by SHCIL. In addition, an e-stamp’s authenticity can be verified online using the enquiry module on the website as each e-stamp generates a unique identification number. To Verify the e-stamp paper go to https://www.shcilestamp.com/eStampIndia/VerifyCertificate.es?rDoAction=VerifyCert  and enter the details as shown in image below. Click on image to enlarge.

SHCIL estamp verify

SHCIL estamp verify

Disadvantages of using e-stamps: The major flaw is that if the e-stamp certificate is misplaced, a duplicate copy cannot be issued. Also, if you wish to cancel the request for an e-stamp for a refund, it can be done only at SHCIL offices and not at the ACC that issued the certificate.

How to get e-stamping done:

  • First, you will have to go to the SHCIL website, www.shcilestamp.com, and check if your state government allows e-stamping. The site also has information on which transactions require stamping and addresses of collection centres.
  • If the option is available in your state, you will have to fill an application form at an ACC. The application form should have details of the parties involved and the transaction for which it is to be used.
  • This form is to be submitted along with payment for the stamp certificate. You can pay in currency or use a cheque or demand draft if it is done at the ACC. Online payment can be made using debit cards, credit cards, pay orders, RTGS, NEFT or through an account-to-account transfer.

Paying Stamp Duty in Maharashtra

Electronic-stamping is not available in Maharashtra as the licence for SHCIL was not renewed by the state.  Hence, since July 2013, you can pay stamp duty online via an electronic secured bank treasury receipt (eSBTR)-an online payment service. It is not an option in any other state.The state govt of Maharashtra has decided to do away with franking of documents for amounts above Rs 5000. This futuristic method of Stamp Duty (and Registration Fees) collection was launched on July 26, 2013 with IDBI as the participating bank.  In Maharashtra collection of stamp duty  increased from Rs. 2,533 crore in FY 2002-03 to Rs. 16,115 crore in FY 2012-13. In the year 2013-14, the revenue collected through the eSBTR system was around Rs. 26977.56 crore.  List of Banks and designated branches providing eSBTR facility is available at https://gras.mahakosh.gov.in/echallan/frmavailablebank.php

In this method,

  • One can pay stamp duty and/or registration fee  online through bank portal or over the counter at any bank authorised by the department.
  • After paying stamp duty and/or registration fee online or over the counter at authorised banks, citizens will get a token number.
  • Authorised banks will print the SBTR (Secured bank and treasury receipt) after producing the token number.
  • The eSBTR is a receipt of duty paid to the government. It is printed on secure stationery issued by banks. Sample eSBTR receipt is shown below. Click on image to enlarge
eSBTR Maharashtra

eSBTR Maharashtra

Related Articles:

Which method of paying stamp duty you have used. Which one do you prefer? How easy/difficult it was to pay stamp duty?

79 Responses to E-Stamping,Franking,Stamp Paper : Paying Stamp Duty

  1. v. lokesh says:

    what is the amount of non-judicial stamp duty to entering into an agreement in respect of house keeping jobs.

  2. Divya says:

    sir i finshed Bsc. how i get the nonjudicial stamp license plz guide me sir

  3. msp says:

    I had made e stamp affidavit from karnataka.. n now ithas completed 6 month… so can i renew that document from mumbai

  4. Trilok Chandra Arya says:

    i want to licence for selling Non Judicial stamp paper
    please let me know how can i get the licence

  5. Mani Sriram says:

    Sir,

    Very informative article. But for physical share transfers (form SH-4), a stamp duty (0.25% of market value) has to be paid. In Mumbai where will this be franked? (The banks that deal with other stamp duty state that they do not deal with Stamp duty for share transfers). Any information on this would be appreciated.

  6. arpita maheshwari says:

    I m from ajmer rajasthan.I need a stamp for my company service aggrement . now what should i do for the same ?

  7. Rajesh Kumar says:

    Dear Sir,
    I had a deal with land owner and he asked me to do the e-stamping which I had done of Rs. 48300/- and e- registration charges of Rs. 16000/-, later he refused to sell out his property.
    Kindly reply with validity of these documents and the complete procedure to get these above amount to refund, any deductions?
    Rajesh, Himachal Pradesh

  8. how do we value the stamp paper, and how much stamp duty is to be paid for an business agreement

  9. Vishakha vaid says:

    Dear sir/Madam

    As per my legal experience 10% deduction is not valid by hon”ble court order on E-stamp or other even then most of the refund cases of e stamp deduct 10% its wrong its not nature of justice.

    Miss Vishakha Vaid
    vaidvishakha98@gmail.com
    9781973316

  10. Vishakha vaid says:

    Dear sir/Madam

    As per my legal experience 10% deduction is not valid by hon”ble court on E-stamp or other even then most of the refund cases of e stamp deduct 10%
    its wrong its not nature of justice.

    Miss Vishakha Vaid
    vaidvishakha98@gmail.com
    9781973316

  11. Naveen says:

    I want to be a e – stamp vendor i want to known how to get registration
    So pls guide i f u known

  12. KAMLESH PARWAR says:

    I hv to do a agreement on Rs 100 stamp paper. But they said that it is not available .. Can I use two Rs 50 stamp instead of that Rs 100 stamp?

  13. You completed quite a few nice points there. I did a search on the subject and found most people will have the same opinion with your blog.

  14. shradhanjali says:

    What is the validity of estamp paper? I mean If i purchase the estamp today in how many months do i have to get the registration done. If there’s a delay in the registration can I return the estamp papers and get the refund. If yes how do I do so?

  15. Bhagat B Thapa says:

    I am a e-stamp vendor. I can’t no understand why the word “Copy” appears on the front side of stamp paper. The customer denies to except this type of e-stamp paper on which the said word “Copy” appears. Is it software matter or something else.

    Customer says that this a copy of e-stamp paper so the word copy appears on the stamp paper. I have bear a cost of about 20,000/- till rate due to this matter kindly advise.

  16. Mahesh says:

    Sir My name is Mahesh, i would to know the procedure to get the estamping license in bangalore-

  17. Rajeev says:

    I wanted to buy a property so i was generating e stamp. I made a small mistake that where it says my name i had to type ‘& etc” as the property was to be registered in two names. The Seller says this is essential and the online system does not changes the e stamp generated. What should i do now, who should i contact? I am trying to get this done in Gurgaon.

  18. Rohini says:

    I am staying in Mumbai & I want to rent my house, which is outside Maharashtra (Karnataka). Can I prepare the Rent Agreement in Mumbai on by taking the stamp paper from Mumbai.

  19. alok singh says:

    dear sir,

    i bought stamp paper 82000rs in noida up,

    i want to returning in his stamp paper.

    plz help me, do the needfull.

  20. alok singh says:

    Dear sir,

    I bought stamp paper 82000 rs from noida up, for property purpose but property is gov. i shocks it.
    plz help me in this blank stamp paper returning procss.

    plz do the needfull.

  21. SHABIH AHMAD says:

    sir
    i want to become e stamp vendor in bihar what will be procedure to start e stamp.

  22. tezika says:

    one of our pvt. ltd. co. transferring the shares…Please share the procedure of online payment of stamp duty on transfer of shares in jaipur

  23. Seminal blog will I might try publishing my own

  24. G S Pandi says:

    Sir,
    My brother is transferring some shares of a Private Limited Company in my name. The Company is in Mumbai. I am also a resident of Mumbai. The value of the shares is Rs.8700/-. I would like to pay the stamp duty in the Share Transfer Form. How can I pay? Can you please guide.

  25. vibhash kumar says:

    dear sir/madam
    I am from forbesganj araria bihar
    I purchased 5 non judicial stamp of 5000,and they write my name on it but in a bank i need a special addhessive stamp when I go to return non judicial stamp,staff said “this is useless now”.please sir/madam tell me the proper way to refund non judicial stamp.plzzz fast replay

  26. Deepak says:

    Sir, I have lost my under signed 100 rupee blank stamp. It was brought about 7 months ago. What is the process of cancellation of that stamp now. Please reply fast it’s urgent

    • bemoneyaware says:

      For cancellation you need to get in touch with the Competent Authority at the Stamp Office appointed by the State Government.

  27. Pankaj says:

    Hi Sir,

    I want to start the documentation office in Bihar. Please advice me how i got licence and what is the process of the same.

    With Best Regards,
    Pankaj
    9650012740
    9250110398

  28. Sudheendra says:

    HI,

    Would like to know if my content is more than it fits in e-stamp paper, can i use the normal paper for printing the 3rd paper content along with e-stamp paper?

  29. RAJENDRA M THAKKER says:

    please advise me what is the amount of atmp duty for power of attorney
    how to do e franking in mumbai on grasmahakosh detalied procedure.

  30. Kiran says:

    Sir plz help me…i have lost my agreement e-stamp paper how can i get it back…if i cant get it back plz suggest some solution for it..

    thanking you

    • bemoneyaware says:

      What is the purpose of e stamp paper for -house property, rental? Was it used? Which place did you use eStamp paper – Mumbai/Delhi?

      • vidhya says:

        Hi,
        I lost my estamp certficate for rental agreement made on Nov 2015. Is there any way to get it from ACCs or get a copy?

  31. Amit Kumar says:

    please advice what is the amount of highest amount stamp paper?

  32. ghaswala salma says:

    how many methods to pay stamp duty on banking loan documents are valid and acceptable

  33. ghaswala salma says:

    stamp duty paid by grass on hypothecattion documents by e-challan is valid ?

  34. NELLI SUKUMAR says:

    Sir,

    I purchased a plot in bengaluru. It was registered. But the registration papers given to me are on white papers, (not on stamp papers.)Is it okay. What is the process now. Pls let me know. What I have to do now.
    Regards
    SUKUMAR

  35. Amit giri says:

    I want become a authorised e stamp dealer……

    Plz inform us. .
    9713509216

  36. Kishor Tharwani says:

    Please inform how to get refund from the government authority for the balance lying in the franking machine due to discontinuation of franking activity.

    Also inform about the renewal of license if require every year?

  37. Sandip Vekariya says:

    My no is 9879190687
    Dear Sir, I want licenced e- stamping service center in my city Surat,Gujarat-395006. what the procedure should I follow.

  38. Meghana says:

    How to make correction in the e-sbtr?

  39. krunal mehta says:

    Dear sir,
    Can I make affidavit for lost of paper on franking paper?

  40. abolfazl ghorbani says:

    Hello sir
    i need list the web programming companies that you helped to introduce the same in Iran for Web Design ?

    thanks
    tell-09123873181

  41. Swati says:

    How to pay stamp duty online for transfer of shares in Jaipur, Rajasthan and how to do franking thereafter.

  42. Rakesh says:

    Dear Sir, I need affidavit for my date of birth as I don’t have birth certificate. I leave in Jaipur, Rajasthan. Can I use papers bearing impressed stamps (non-judicial stamp paper) or I have to do it on e-stamps paper only ? Please advise.

    Thanks
    R

    • Kirti says:

      Hello Sir,
      It is very important that the Stamp Paper must be a “Non Judicial ” stamp paper. Generally in most of the Indian states the value of stamp paper required for Affidavit is Rs. 20.00 but it is always better to use a higher value stamp paper.

      The Stamp paper can be a regular stamp paper or the e-stamp. The stamp paper is valid for next six months from the date of purchase. After that it can not be used for the purpose of Affidavit
      No affidavit is valid to use without the Attestation. The Attestation signifies that deponent took the oath before the Attesting person.

      In India the Attesting person can be a Oath Commissioner, Notary Public, Executive Magistrate, or a Judicial Magistrate.

      To be valid, the attestation must be signed and should have the official seal of the Attesting authority.

  43. Sanjay Das says:

    Place give inform me sir Franking E-Stamping Are In Kolkata. Urgent

  44. Can You please tell me if both the party sign the document unaware that later on it will be franking

    Is It valid ?

  45. Can You please tell me if both the party sign the document unaware that later on it will be franking

    Is It valid ?

  46. Prakash says:

    Hi All ,

    Can any one help me, where I can do franking share certificate in bangalore. I need to do for ~ Rs:300 , for the purpose of share transfer which is in my dad’s name .

    mob : 9739281098

    • Kirti says:

      Prakash, Aren’t the share certificates Dematerialisated?
      For shares, stamp duty @ 0.25% of the market value or the consideration amount (whichever is higher) should be affixed on the instrument of transfer. The date taken for calculation of market value must be the the same as the execution date mentioned on the instrument of transfer. A duly executed and stamped transfer deed transfers ownership of shares by delivery of transfer deed along with share certificate. Have you tried place where franking is done in Bangalore near your house?
      Yellow pages gave me following results http://bangalore.yellowpages.co.in/Bank+Stamp+Franking+Service
      Please do keep us updated.

  47. Prakash says:

    Hi All ,

    Can any one help me, where I can do franking share certificate in bangalore. I need to do for ~ Rs:300 , for the purpose of share transfer which is in my dad’s name .

    mob : 9739281098

    • Kirti says:

      Prakash, Aren’t the share certificates Dematerialisated?
      For shares, stamp duty @ 0.25% of the market value or the consideration amount (whichever is higher) should be affixed on the instrument of transfer. The date taken for calculation of market value must be the the same as the execution date mentioned on the instrument of transfer. A duly executed and stamped transfer deed transfers ownership of shares by delivery of transfer deed along with share certificate. Have you tried place where franking is done in Bangalore near your house?
      Yellow pages gave me following results http://bangalore.yellowpages.co.in/Bank+Stamp+Franking+Service
      Please do keep us updated.

  48. Sir/ Madam Im In mumbai And The Franking Documents Are In Mumbai.

  49. Anand Parashar says:

    Sir/ Madam Im In mumbai And The Franking Documents Are In Mumbai.

  50. Need to be know how i can for franking of the document it’s aggriment of the actor/artist for the film. the amount of the franking is above rs.15000 ( fifteen thousand ).kindly guide how i can do it.
    Thank’s.
    Best Regards.
    Anand Parashar.

  51. Anand Parashar says:

    Need to be know how i can for franking of the document it’s aggriment of the actor/artist for the film. the amount of the franking is above rs.15000 ( fifteen thousand ).kindly guide how i can do it.
    Thank’s.
    Best Regards.
    Anand Parashar.

  52. karan singh rajawat says:

    Dear Sir/Madam My office is situated near so many bank in Jaipur (Rajasthan)and the costumers need e-stamp for their documents so please tell me the complete process to get e-stamp service. as soon as possible.
    currently i am running govt. services in my office.

    • Kirti says:

      Sorry Karan I have no idea how one can start e stamp. But it’s a great idea. From what I know
      SHCIL is the only CRA appointed by the Government of India. Central Record Keeping Agency is responsible for User Registration, Imprest Balance Administration and overall E-Stamping Application Operations and Maintenance. CRA will appoint ACC’s who will issue certificates to the clients at their counters.
      Check out SHCIL website

  53. karan singh rajawat says:

    Dear Sir/Madam My office is situated near so many bank in Jaipur (Rajasthan)and the costumers need e-stamp for their documents so please tell me the complete process to get e-stamp service. as soon as possible.
    currently i am running govt. services in my office.

    • Kirti says:

      Sorry Karan I have no idea how one can start e stamp. But it’s a great idea. From what I know
      SHCIL is the only CRA appointed by the Government of India. Central Record Keeping Agency is responsible for User Registration, Imprest Balance Administration and overall E-Stamping Application Operations and Maintenance. CRA will appoint ACC’s who will issue certificates to the clients at their counters.
      Check out SHCIL website

  54. Rahmathunnisa Begum says:

    hi sir ,
    can i use stamp paper instead of franking.
    plz informe as its very urgent

    • Kirti says:

      Sorry for delay in reply.
      There is no clear cut answer to it. It depends on the purpose. Usually they mention whether franking/stamp paper is required.

  55. Rahmathunnisa Begum says:

    hi sir ,
    can i use stamp paper instead of franking.
    plz informe as its very urgent

    • Kirti says:

      Sorry for delay in reply.
      There is no clear cut answer to it. It depends on the purpose. Usually they mention whether franking/stamp paper is required.

  56. My no is 9008453065.
    Dear Sir, I want licenced e- stamping service center in Electronic City, Bangalore-560100, what the procedure should I follow.

  57. My no is 9008453065.
    Dear Sir, I want licenced e- stamping service center in Electronic City, Bangalore-560100, what the procedure should I follow.

  58. Ayush Jain says:

    I just want to point out that now there are home delivery options available for the SHCIL e-stamp paper (www.notarymama.com). I had used their services and had verified the serial number of received stamp paper on SHCIL website.

    Disclaimer: I have just used the site once as customer, have no relation with the website. Your experience may vary!

  59. Ayush Jain says:

    I just want to point out that now there are home delivery options available for the SHCIL e-stamp paper (www.notarymama.com). I had used their services and had verified the serial number of received stamp paper on SHCIL website.

    Disclaimer: I have just used the site once as customer, have no relation with the website. Your experience may vary!

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