Why Electronic Stamping is a Suitable Way to Pay Stamp Duty?
The payment of the stamp duty is a crucial part of almost every transaction you do in India right from buying or selling a property to the establishment of a business agreement or even registration of your various insurance policies. But, the procedure includes too many people and needs utmost attention to detail that can dispirit even the most optimistic people. Of course, approaching the best business consulting companies to have e-stamping services in Singapore would be the best idea and will surely worth the money if you wish to have no complications in the future.
What is the Importance of E-Stamping?
The government of India has presented e-stamping to overcome counterfeiting and pay the stamp duty glitch-free and easier. As a matter of fact, in certain states like Delhi, every stamp duty requires to be paid through e-stamping compulsorily. The central government has nominated the Stock Holding Corporation of India Limited (SHCIL) as the Central Record Keeping Agency (CRA) for all e-stamps utilized in the nation. At present, SHCIL is liable for everything right from user registration to administration, maintenance of records and all e-stamping applications. The procedure is quite simple. First, you would need to visit the SHCIL website and check if your state government allows the process of e-stamping. The website also has addresses of collection centers and information on which transactions need stamping. Even if there is a website for e-stamping, it is much better to get e-stamping services in Singapore to avoid errors.
You will have to fill out an application form at an ACC if the option is available in your state. The application form must have details of the parties included and the transaction for which it is to be made into use. This form should be submitted along with payment for the stamp duty. You can use a cheque or pay in currency or use a demand draft if it is undertaken at the ACC. You can pay online using credit cards, debit cards, pay orders, NEFT, RTGS, or through a bank to bank transfer. There are many advantages to using e-stamps. It is tamper-proof, an be created within minutes, and all data is saved by SHCIL. Moreover, the authenticity of an e-stamp can be verified online with the use of the inquiry module on the website. If you do not know how to deal with all of these things, you can hire e-stamping services in Singapore.
Time Period of Stamping of Documents
Hire the most effective business consulting company to know about the time period of stamping documents that come under e-stamping services in Singapore. The stamp duty can only be paid on documents associating to:
Property that is immovable (land and property)
Shares and stocks, for e.g. an agreement for the purchase and sale of land
You can do stamping of your documents after or before legally signing them.
The documents that are executed in Singapore must be stamped within 14 days of execution.
The documents that are executed in foreign countries must be stamped within 30 days of obtaining them in Singapore.
Stamping your documents must be done on time to avoid penalty fees.
If you would not stamp your documents, IRAS might charge a penalty of up to four times the amount.
You might also require to give a fine of up to S$10,000 or else imprisoned up to three years or both.
Penalties for failing to pay the Stamp Duty
Ignoring or neglecting to pay your stamp duty makes your tenancy agreement invalid. There might be any dispute between the tenant and the landlord, and they will have no legally binding agreement to solve their dispute. Apart from that, refusing to pay stamp duty on your tenancy agreement is also equal to tax evasion and the authorities can take legal actions against you. On hiring e-stamping services in Singapore, the professionals will tell you about the penalties that you might need to face because of certain reasons. There will be a $10 penalty or an amount equivalent to the Stamp Duty for late payments within 3 months whichever is greater. The penalty amount will increase to $25 or four times the amount of the Stamp Duty after 3 months whichever is greater.
As ignoring to pay your stamp duty is equal to tax avoidance, tenants can expect the IRAS to start inquiring closely into their personal tax status if they elude payment for too long. Thereafter, the IRAS has the right to charge a fine of up to $5,000 plus interest on the basis of the IRAS’ own discretion. The consequences can be directed at both Landlord and tenant hence it is better to just pay up the stamp duty. Preferably, the tenant should send a receipt of the payment of Stamp Duty to their Landlord. However, in cases where this does not happen which means Landlords who are not sure of whether their tenant has paid up the Stamp Duty, can sign in to the IRAS website to check all details. To pay stamp duty online regularly, you can also take the help of e-stamping services in Singapore.
Methods used to Stamp Documents
If your housing agent/lawyer/accountant is a subscriber of the e-Stamping system, he or she can assist you to stamp and file your documents online. You must talk with your tax advisor or accountant for more information when you hire e-stamping services in Singapore. Your stamp duty payment might be done via eNETS (for non-registered users) or GIRO (for registered users). Before going to IRAS to get your documents stamped over the counter, you should download and fill up the appropriate stamp duty form. You can pay your stamp duties by cash, cheque, or NETS. You can also pay by bank draft or cashier order and these are to be made due to the “Commissioner of Stamp Duties”.
Who is the Commissioner and Deputy Commissioners of Stamp Duties?
By notification in the Gazette, the minister might appoint an officer to undertake the provisions of the Stamp Duties Act. They are called the Commissioner and Deputy Commissioners of Stamp Duties. Every Deputy Commissioner of Stamp Duties shall have and can practice all the Commissioner powers under the provisions of this Act except sections 40(2) and 68(1) and subsection (3). The Commissioner might subject to such restrictions or conditions as he thinks fit, assign to any person having an official duty or engaged in the administration of this Act, all or any of the functions, powers, and duties by this Act entrusted to him. All of these things will be discussed under e-stamping services in Singapore when you will hire them.
Stamp Duty for Singapore Rental Units
Rental units’ stamp duties are taxes imposed on the Tenancy Agreement documents. All renters are asked to pay this tax as long as they are leasing a unit no matter it is a bedroom or an entire HDB flat. The Stamp Duty has to be made payable to the Inland Revenue Authority of Singapore (IRAS). Once the Stamp Duty has been paid and all the relevant seals, as well as stamps, are in place, the Tenancy Agreement will only have legally binding power. The Stamp Duty on Singapore rental units also applies to the renewal of the Tenancy Agreement or extension of the lease. When you recruit the best e-stamping services in Singapore, the company will allow you to talk to tax advisors or professionals about this.
The Stamp Duty on rental units is normally paid by the tenant. However, there are cases where it is negotiated that the landlord will suffer the cost. The tenants should always mention the payee of the Stamp Duty in the Tenancy Agreement to avoid dispute, In case of the Tenancy Agreement does not state who is responsible for the payment and a dispute, the IRAS will follow the rules of the Third Schedule of the Stamp Duties Act. The tenants who are not familiar with this process can get an agent to assist them. There are many business consulting companies that are reputed and effective in Singapore. You can hire their e-stamping services in Singapore to carry out the process of e-stamping in a better way. Definitely, they would be ready to talk with you and meet your needs for paying stamp duty. So, it is always preferable to hire the best agent while undertaking the operations of stamp duty.