New Delhi: Following the demand of mineral producing states, the Union Government has decided to amend the Indian Stamp Act. It will give the states like Jharkhand the power to review the lease of mines after every ten years.

According to estimates, after getting the right to raise the stamp duty, Jharkhand will earn additional revenue of Rs 100 crore annually on the basis of royalty value. Presently, the state earns Rs 2000 crore revenue through royalty.

Mineral producing states like Jharkhand, Orissa, Chhattisgarh, Karnataka and Tamil Nadu have been demanding a revision in the Stamp Duty Act.

Indian Stamp Act Amendment Bill is slated to be introduced in parliament in the forthcoming monsoon session. A cabinet note has been dispatched to all the ministries seeking their advice on the issue.

After the amendment, if the state government finds Stamp Duty paid at the time of execution less than the royalty received, it may raise the stamp duty.

Stamp duty is decided on the basis of mining lease cost and varies from state to state.

 

(JPN/Bureau)