Incorrect stamp duty payment

Hello

Partnership deed is created on may 2023 with capital contribution of Rs.100000 but the stamp duty was paid only Rs. 500. As per my understanding the stamp duty has to be paid of Rs. 1000 but only 500 was paid. Can i make payment of 500 now by franking or GRASS. Is that fine. What should i do please suggest. 

Replies (1)

Hi Abhay,

Regarding your partnership deed stamp duty short payment issue, here’s what you can do:


1. Check the Applicable Stamp Duty Rules for Your State

  • Stamp duty rates and rules differ state-wise in India.

  • Confirm the exact duty payable for a partnership deed with capital contribution of ₹1,00,000 in your state’s Stamp Act or official website.

2. Can You Pay the Shortfall Now?

  • Usually, short payment of stamp duty can be rectified by paying the remaining amount later, but it must be done before the document is used as evidence in any legal proceeding.

  • Franking is generally for the initial stamp duty payment, but some states allow adhesive stamps or e-stamping to pay additional duty.

  • GRASS (Government Receipt Accounting System) or e-stamping is commonly used for such payments.

3. Suggested Steps:

  • Contact your local Stamp Office or the official e-stamping agency to check if they allow payment of additional stamp duty now via GRASS or adhesive stamps.

  • Pay the remaining ₹500 promptly to avoid penalties or legal issues.

  • Keep the receipt or proof of this additional payment along with the original deed.

4. Legal Validity:

  • Once the full stamp duty is paid, the deed’s legal validity is restored.

  • If you delay, the deed may be considered under-stamped and could lead to penalties or inadmissibility in courts.


Summary:

Issue Action
Short payment of ₹500 duty Pay remaining ₹500 via GRASS or adhesive stamps
Check state-specific rules Contact local Stamp Office
Maintain proof of payment Attach with original deed
Timely rectification Avoid penalties and legal complications

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