In case there is a need to give a legal binding to your documents, you will have to pay the stamp duty charges. Most of the people who have availed a Home Loan at a time or another will be informed of certain charges. However, there is another concept called franking. This is taken into consideration for making a document legal. But are these concepts similar? Can we put them under a single frame? The answer is No.
Let’s look at the principal difference amongst the concepts. The Stamp duty tax is levied on legal papers, including those that include the sale of the stable field. The amount of stamp duty tax could either be fixed or it could be a section of the business value in the case of estate records.
It is necessary to pay stamp duty for a statutory document and you can be penalized if you don’t pay it.
Franking, on the other hand, is a manner that is applied to stamp the legal record. This is the method used to affix any kind of mark or stamp to a document to show that the stamp charge has been met.
Consequently, while stamp tariff is a tax that one pays, franking is the process developed to stamp your documents. Do you still have a doubt? Did this build your confusion?
Seek the explanation given below.
You have seemingly seen carrier envelopes with seal classes many times. In some cases, alternately of real stamps, you would get a print that resembles a stamp, but with a denomination on it. This is normally used by the post office for bulk mails (just like magazines) where sticking stamps is very time-consuming. This is known as a postal franking.
Franking for records is very related. Paper franking is a method where an approved bank or a franking agency will assign a stamp on your paper. This seal indicates that all the stamp duties have been met for that record.
What are the advantages and disadvantages of franking?
One of the pros of franking is that it can be completed very swiftly if one pays the costs and stamp duty through cash or maybe via a demand draft.
There can be numerous shortcomings if you want to use franking to stamp your papers. Banks and agents of Franking ask you to meet the franking prices in cash for little amounts and pay via an order for bigger numbers.
All commissioned agencies or banks do not reflect the identical rules for franking. The precepts may vary among states and also from one agency to different within a particular state.
Franking is possible only for confined functioning hours and only through weekdays. Furthermore, not every bank branch of an approved bank has franking instruments. The most remarkable thing is that every authorized bank has something recognized as a ‘franking quota’.
You might require to notify the bank well before the deal is made to guarantee that you get the privilege of franking.
If you are looking for getting franking and stamping services, contact Doqfy. We will help you through the process.