E-stamping system launched in Gujarat

India's first e-stamping system for paying stamp duty electronically was launched here recently by the Stock Holding Corporation of India Ltd. (SHCIL).

The internet-based system is a computer-based application for stamping documents electronically which has been developed by SHCIL.

The Centre has recognised and appointed SHCIL as the Central Record Keeping Agency (CRA) for Computerised Stamp Duty Administration System (CSDAS) and devise a mechanism for the electronic method of collection of stamp duty. This makes Gujarat the first state in the country to implement the e-stamping mechanism.

India is also the third country to have introduced this system after Hong Kong and Singapore.

Explaining the system's functioning, CMD, Jayaraman Iyer, said, "SHCIL, one of the largest depository participants with over one million active retail customer base, deploys the state-of-the-art technology and uses highly advanced operating systems in its business operations. The customer has to just pay the stamp duty to us and within minutes through the system he will get a printout of the stamp duty document. The printout is specially designed and tamper proof. The government has recognised our system after ensuring that it is simple, convenient, transparent, reliable, secure and cost efficient."

The printout is 2D bar coded with micro printing and digitally optical water marked, system generated certificate with unique identification number. The details of the transaction are also stored permanently on the website for future verification.

Initially the e-Stamping system will be implemented at Ahmedabad and Gandhinagar and will be later extended to the entire state in a phased manner.

SHCIL will, however, have to maintain a certain amount of balance with authorised collection centres (ACC) like banks and financial institutions recognised by the government. It has been working with several other states like Maharashtra, Delhi and Tamil Nadu for introduction of the system.

According to Iyer, presently transactions worth Rs 2,700 crore take place every year in Gujarat and of Rs 47,000 crore in the whole country.