Registration & Licenses

Stamp Duty and Registration in India
Registration & Licenses

Stamp Duty and Registration in India

Stamp Duty and Registration Charges

The Indian government levies stamp duty on various legal papers such as sale deeds, conveyance deeds, gift deeds, and mortgage deeds. These agreements establish the contracting parties' obligations and rights. Stamp duty and registration fees ascertain possession and serve as proof of sale/purchase in a court of law. The sum you must pay to the authorities to register a property in your name is stamp duty. The cost of stamp duty varies based on the region's circular rates. The amount of stamp duty varies from state to state.

The most conventional method of paying stamp duty and registration fees is to purchase physical stamp papers. One can buy non-judicial stamp paper from a licensed dealer here. Papers with imprinted stamps are known as non-judicial stamp paper. The transaction information can be written/typed on the stamp paper after purchase. The conventional method of paying stamp duty and registration fees is to buy physical stamp papers. You can purchase non-judicial stamp paper from a licensed seller. Paper with imprinted stamps is known as non-judicial stamp paper. The transaction information can be written/typed on the stamp paper once you have purchased it.

The government implemented e-stamping to prevent counterfeit stamp sheets and make stamping easier. Several states permit e-stamping. E-stamping is simply stamping done via the internet. The Stock Holding Corporation of India Limited (SHCIL) has been named the official e-stamping vendor and the Central Record Keeping Agency for all e-stamps used. To perform e-stamping,  you need to access the SHCIL website. Details on the transactions that must be e-stamped are present online. After filling the application form, you can return it to the collecting center with the stamp duty payment. Different modes of payment are adopted, including debit cards, credit cards, checks, demand draughts, and internet banking. Upon paying the stamp duty,  you would get the e-certificate. The issuing date is included in the certificate's unique certificate number (UIN). E-stamping has the advantage of being accessible and allowing for online verification.

Franking is a procedure in which an authorized franking agency stamps your document to indicate the amount of stamp duty you have to pay. One should contact an authorized bank that will function as a franking agent or a franking agency to deposit the stamp duty before you complete the transaction for which you must pay the stamp duty.

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Stamp Duty on Gift Deed

The transferee or donee is obligated to pay stamp duty unless there is an agreement to the contrary. An agreement or gift deed, on the other hand, might indicate differently. The stamp duty is agreed to be paid equally by both parties in many sales and gift deeds. Get the stamp papers in the name of one of the parties to the gift, i.e., the donor or the donee; otherwise, the stamp paper will be rendered useless. If you pay the stamp duty on time, it is valid for six months from the date of purchase. Penalties, such as monetary fines, can be incurred if a document that needs stamping is not stamped correctly. If you don't pay your stamp duty on time, you'll be charged 2% every month, up to a maximum of 200 percent of the amount you owe in stamp duty.

Stamp Duty Registration Calculator

The bottom line is that stamp duty is computed based on the property's entire market value. If your asset's market worth is high, you'll have to pay a hefty fee and vice versa. If the property has both a market value and an agreement value, you will pay stamp duty on the higher of the two. Apart from the property's cost or worth, the kind of property, location, the owner's gender and age, the property's use, and the number of floors in the property all influence the property registration fee and stamp duty costs. Stamp duty officials usually utilize Stamp Duty Ready Reckoner to determine the property's value. Consider using one of the many online stamp duty calculators available to figure out how much stamp duty you'll have to pay. To receive your answer, enter basic information about your property, such as its location and total worth, and then click the "Calculate" option. To calculate the total sum required to register your property, add the cess and surcharges.

People Also Read This: Land & Property Registration: All You Need To Know

Stamp Duty Value

Any value set by any authority of the federal government or a state government for stamp duty payment on immovable property is referred to as stamp duty value. When acquiring a property, it is necessary to set up a substantial sum for stamp duty and registration fees. Registration fees are paid to the same body that handles all the paperwork required to complete the procedure. Suppose the actual sale consideration of such land and the building is less than the stamp duty value. In that case, the stamp duty value will be considered an absolute value of consideration, i.e., as deemed selling price, and capital gain will be computed accordingly to section 50C.

All you need to know about Digital Signatures and how to get the Certificate
Registration & Licenses

All you need to know about Digital Signatures and how to get the Certificate

Digital signature is a technique used to validate the authenticity of a digital document. It provides more credibility to digital communications. A digital signature is defined and dealt with under Sections 2, 3 and 15 of the Information Technology Act. Section 2(1)(p) of the Information Technology Act defines Digital Signature as, “mean authentication of any electronic record by a subscriber by means of an electronic method or procedure in accordance with the provisions of Section 3”. In order to obtain a Digital Signature Certificate, there are certain procedures that need to be followed.



What do you require to apply for a Digital Signature Certificate


The following are the requirements to apply for a digital signature certificate: 

  1. Fill Form: Duly filled application form for Digital Signature Certificate
  2. Photo ID Proof: This can include one’s driving license, PAN card, Aadhaar card etc.
  3. Address Proof: Typically, phone bill, electricity bill, rent/sale agreements etc. are accepted as address proof.

Types of Digital Signature Certificate


Class 1 Certificates: These certificates are issued to private as well as individual subscribers. These certificates are issued to ensure that the user’s name, email address and other details provided are true and within the database of the Certifying Authority


Class 2 Certificates: These certificates are issued to the director or the signatory authorities of the companies. The main purpose of issuing these certificates is for the E-filing of the Registrar of Companies. Individuals who sign all the documents manually and file the returns with the Registrar of Companies, must mandatorily have Class 2 certificates.


Class 3 Certificates: These certificates are used for online participation or for people bidding in e-auctions or any online tenders across India. Class 3 certificates are mandatory for all the vendors who wish to participate in online tenders.   



Procedure for obtaining a Digital Signature Certificate 


The following steps need to be followed in order to obtain a Digital Signature Certificate:


Log-in to the Certifying Authority’s website: Not anyone and everyone can issue Digital Certificates. There is a list of Certifying Authorities that are licensed to issue Digital Certificates. This list is available on the MCA website and includes authorities such as the NSDL, E-Mudhra etc. In order to obtain a Digital Signature Certificate, one must log on to the site of the Certified Authority and visit the Digital Certification Services section and choose the type of form. For example, whether you want to obtain a digital signature certificate for an individual or an organization, and accordingly one must download the form.  


Fill necessary details: Upon receiving the form, the person must fill correctly all the required details. Some of the details asked are class of digital certificates, validity, contact details, residential address, type of digital certificates, GST number if applying for the organization, declaration etc. After filling the form, one must recheck the information provided and thereafter take a printout of the form and preserve the copy of it. 


Provide the required proofs: The residential proof and ID proof attached to the form must be attested by an officer. It must be ensured that the sign and seal of the officer is clearly visible so as to avoid any obstruction in the procedure further.


Make the payment: The payment must be made in order to acquire the Digital Signature Certificate either by cheque or by Demand Draft in the name of the Local Registration Authority. The details of the Local Registration Authority differ from the person’s city of residence, and such details can be obtained by searching the appropriate certifying authorities licensed to issue Digital Signature Certificate.


Send a hard copy of the form to the Local Registration Authority: After filling the form, one must send in an enclosed envelope the following documents to the Local Registration Authority-:

  1. Duly filled application form,
  2. Attested copies of the Residential Proof and ID Proof, and 
  3. Demand Draft or Cheque 


A digital signature certificate is extremely important at times of incorporation and during all compliance stages. Having a valid digital signature, makes authentication of electronic records easy and faster.

What You Should Know Before Starting A Restaurant Business
Registration & Licenses

What You Should Know Before Starting A Restaurant Business

Food industry in India is expanding fast. With affordability, eating out has become a part of the millennials’ culture. This has led to many people entering the food restaurant business. In fact, in cities like Bangalore and Hyderabad, many small cafes operated from homes, have also come into existence. However, opening of a restaurant business is not an easy task. There are a number of regulatory requirements involved. We will explain to you, what you should know before you decide to become a restaurant owner. 



Regulatory Requirements of a Restaurant Business


FSSAI (Food Safety and Standard Authority of India) License

This license is also known as the Food License. It is issued by the Food Safety and Standard Authority of India and is a guarantee of the fact that the food served by the respective restaurant is safe to eat. A 14-digit number is given at the time of registration. A restaurant certified by FSSAI is an assurance to the customers that the food provided is according to the safety standards set by FSSAI. A list of documents such as ID Proof, Kitchen Layout Plan, NOC of the owner and many others must be submitted in addition to filling an online form on the FSSAI website. Thereafter one must submit the required documents and the application form and then make a payment of INR 2000 to the Regional/State Authority. 


Liquor License 

The restaurants who wish to serve liquor as well in their restaurant must mandatorily obtain a Liquor license from the Local Excise Commissioner. A list of documents is required to obtain a liquor license of which the most important is obtaining a NOC from the State Fire Service department.  However, getting a liquor license is not that easy, after the verification of the documents, a fee of INR 5,000 must be paid.  An additional INR 50,000 must be paid for each additional brand like whiskey, rum, gin, brandy, vodka, etc. 


Signage License 

Marketing is essential for any business. Good marketing skills help a person to give fame to his business, but in order to market your restaurant, one must obtain a license. Yes, even for marketing your restaurant you must receive a license. This is known as the Signage License.  In order to market your restaurant through person, logos, symbols or posters one must obtain a legal permit. 


Certificate of Environment Clearance 

The restaurant is obliged to take care of the environment as well. It must take adequate measures to ensure that it does not harm the environment in any form. In order to ensure that the restaurant is environmentally compliant, it must obtain a Certificate of Environmental Clearance. In order to obtain this license, one must submit certain documents with the application form to the concerned authorities. 


Music License 

In order to play music in a restaurant, a specific license is required. As per the Copyright Act, 1957, those who play pre-recorded music in any non-private, commercial or non- commercial establishments must have a Music license as issued by the Phonographic Performance Limited (PPL).


Fire Safety License 

The safety of customers must be the top priority of the restaurant. The restaurant should be designed in such a manner so as to protect the customers from hazards such as fire. Thus, a restaurant must necessarily be fire safety compliant and must obtain a NOC from the fire department. Unlike other licenses, this license must be obtained before the construction of a restaurant starts.   


Shop and Establishment License 

This license is required to open a fine dining restaurant or a food truck. As per the Shop and Establishment Act, any person who commences this business must apply for this license within 30 days of starting it. The cost incurred on obtaining this license depends on various factors such as number of employees, location of the restaurant and many more. 




Though the regulatory requirements behind opening a restaurant are slightly complicated, they can be made easier by seeking legal help. Seeking legal help will not only make your job easier of getting all the necessary licenses but also will ensure the smooth functioning of the business without any legal hindrances.