Monday, September 22, 2014

Mine lease renewal franking fee waived

PANJIM: The government has changed the rules by which stamp duty is to be collected for renewal of mining leases by doing away with the franking charges levied by banks.

24 Jul, 2013, 12:00AM IST

A-   A+

 
TEAM HERALD
teamherald@herald-goa.com
 
PANJIM: The government has changed the rules by which stamp duty is to be collected for renewal of mining leases by doing away with the franking charges levied by banks. 
The Directorate of Mines and Geology will now collect stamp duty from mining leases directly and issue a receipt saving them, the commission paid to banks. 
The recent notification says  that the stamp duty to be paid to the government will be through a demand draft or pay order drawn in favour of the Mines Department or by way of challan issued by the department. 
Last year, the  Manohar Parrikar-led government had amended the Indian Stamp Duty Act charging 15 per cent duty on the amount of projected royalty for over 20 years. The leases of around 337 mines expired in 2007 and they have now applied for renewal. The government till March end had renewed around 18 mining leases and collected some Rs 324 crore as stamp duty. 
A Mines Department official said that earlier the payment of stamp duty had to be made through banks which charge around one per cent franking fees. Accordingly, of the total Rs 324 crore, Rs 3.24 crore was paid to the bank.
The official said that the recent modification had helped the state government to collect fees without paying any commission to the bank.  
“The challan issued by the department shall be issued in quadruplet. One copy of each challan shall be for bank treasury, customer and the Mines Department,” the notification reads. 
“One copy of receipts or challan shall be submitted along with an application for grant or renewal of mining lease made. Another copy is to be presented to the department at the time of execution of lease deed, which after due verification that the duty has been paid in cash, will make an endorsement so that it cannot be issued again,” the notification adds.