1. Introduction
Stamp duty is a government-imposed levy essential for validating legal documents. It acts as a stamp of approval from the government, recognizing the transaction as official, legally binding and simplifies your stamp paper procurement with our online service. Using our procurement services, you can place orders for stamp papers across various states in India. We will make the scanned copies of procured stamps available to you within standard Turnaround Time (TAT).
2. SpotDraft Offerings
| What’s Included | What’s Not |
| Payment of Stamp Duty: We will help you procure stamp papers by making the payment of stamp duty as per the state’s regulations through authorized channels and licensed stamp paper vendors. | Stamp Duty Calculation: We will not calculate the exact stamp duty amount. Clients will be responsible for determining the correct stamp duty amount based on the nature and value of the document. |
| Stamp Paper Procurement: We will help you procure both e-stamps and physical stamp papers, based on the state and value provided by the Client. | Document Verification: We do not validate the legality or accuracy of the documents on which the stamp is to be affixed. |
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Shipment of Physical Stamps: If the Client requires physical copies of the stamp papers, they can drop us an email at estamp@spotdraft.com along with the Contact Person’s name, contact number, and shipping address with pin code for such delivery.
Note: Printout of eStamp on a regular A4 sheet is as good as original, as the same can be verified on SHCIL anytime. |
No Refunds or Cancellations: Once an order has been placed the same cannot be canceled or refunded. |
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Compliance with Regulations: The service |
Notarization of the document is currently not facilitated through SpotDraft in any State. |
E-stamps vs. Physical Stamps:
● Availability: The availability of e-stamps and physical stamps varies by state.
● Verification: E-stamps can be verified online, while physical stamps require manual verification. Uncollected physical stamps may be discarded after six months. Clients should promptly collect physical copies of their stamps to avoid disposal.
3. State-Specific Regulations
● Counterparty Name: Some states, like Karnataka and Tamil Nadu, require the actual counterparty name for stamp issuance, limiting bulk orders.
● eSBTR (Maharashtra): For stamp duty above INR 5000 in Maharashtra, payment must be made through banks (eSBTR).
● 30 % State Govt Tax: Rajasthan Govt implies 30% additional tax on the stamp duty payment which will appear on the eStamp.
4. Placing an Order: Orders for stamp papers can be placed via the following modes:
● Ad-hoc orders: The orders placed for Individual stamps through SpotDraft workspace with specific party names.
● Bulk Order: The orders placed for more than 20 stamps in one go for future use with a generic counterparty name such as Company, Merchant, Vendor, Employee, Customer, etc. Such orders can be placed through the Stamp Procurement form and these stamps will be made available in your Workspace within 24 hours which can be then picked & affixed before the contract is marked for execution. You can also enable settings for the system to automatically pick a stamp for certain contract types from the stamp inventory.
Here is a comprehensive walkthrough of the entire process.
5. Payment Information
All payments towards procurement of E-stamps will be made via bank transfer. Account details are included on Debit Notes, Sales Orders, and Invoices as well.
| Name: Draftspotting Technologies Pvt. Ltd. |
| Bank Name: HDFC Bank Ltd |
| Bank Street Address: 17th Main, HSR Layout, Bangalore 560102 |
| Branch Code: 1993 |
| Bank State / Province: Karnataka |
| Bank Country: India |
| SWIFT code: HDFCINBB |
| HDFC Bank a/c No: 50200078870722 |
| Ifsc Code: HDFC0001993 |
| MICR Code: 560240022 |
Creation of Tailored Deposit Proposal
●Optimized Deposits: Based on your average monthly spent on Stamp Duty Payments, we will calculate an optimized monthly deposit that aligns with your spending patterns.
E.g. If the average monthly requirement is 100 papers of INR 500 denomination, the estimated deposit would be (INR 500 + INR 75 (convenience fee)) * 100 papers = INR 57,500 Or, approximately INR 60,000 after considering taxes on the service fee.
● Cost Breakdown: Convenience fees include issuing charges paid to vendors which varies by state and denomination) and flat INR 500 shipping fee irrespective of the package weight and to-fro distance.
● Limited Negotiation: Base commercials are fixed due to their application across multiple states. However, the same are subject to review based on overall volume.
a. Initial Billing and Deposit Management
● Initial Deposit Collection: Post contract execution, our Sales Team will initiate the initial deposit collection process through a Sales Order without the TAX component.
● Intimation of Monthly Statements: By the 5th of the following month, the Finance Team will issue a Debit Note for utilized deposit funds (stamp duty and
vendor charges) and a separate tax Invoice for SpotDraft's service fee, along with a Stamp Order Statement. The remaining deposit balance is carried forward.
●Deposit Replenishment: Our finance team will automatically raise new Sales Orders for subsequent deposits once the deposit reaches a predefined threshold as per agreement.
6. Support and Escalations
● Escalation Process: If your respective CSM is unavailable or unable to resolve an issue, users can reach out to Legal Ops (SD) team via email:
o Stamp duty or stamp order related questions/complaints: estamp@spotdraft.com o General support related to the platform: support@spotdraft.com
● Urgent Matters: For urgent or critical matters requiring immediate intervention from senior management (E.g., SLA not being met or other legal/contractual disputes), clients can reach out to CSM who can seek required assistance from Supin Prem.
7. FAQs
1. What is our Standard Pricing & TAT (Pan India)?
| Stamp Denomination/ Stamp Duty Amount | Convenience Fee per Stamp (In INR) | TAT for Ad hoc Orders | TAT for Bulk Orders |
| Upto 499 | 50 | < 4 hours | < 12 hours |
| 500 to 999 | 75 | < 4 hours | < 12 hours |
| 1000 to 4999 | 250 | < 4 hours | < 12 hours |
| 5000 and above | 500 or 10% (whichever is higher) | < 6 hours | < 24 hours |
Any negotiation against the said pricing and/or TAT must be approved by email from Supin Prem prior to execution of the agreement/addendum.
2. Which States and Union territories are we currently supporting?
| Andaman & Nicobar Islands | Jharkhand | Punjab |
| Andhra Pradesh | Karnataka | Rajasthan |
| Assam | Kerala | Sikkim |
| Chandigarh(UT) | Ladakh UT | Tamil Nadu |
| Chhattisgarh | Madhya Pradesh | Telangana |
| Delhi NCT | Maharashtra | Tripura |
| Goa | Manipur | Uttar Pradesh |
| Gujarat | Meghalaya | Uttarakhand |
| Haryana | Mizoram | West Bengal |
| Himachal Pradesh | Odisha | |
| Jammu & Kashmir | Puducherry |
3. Why is there no tax on the Sales Order?
To ensure efficient service delivery, we'll raise a Sales Order to collect the initial deposit. Since we can't predict the exact amount of the deposit that will be used during the month, we'll hold off on issuing a Tax Invoice or Debit Note until the end of the month. This approach helps prevent billing errors if the deposit remains unused. Additionally, The Goods and Services Tax (GST) law doesn't include stamp duty or registration charges. This is because stamp duty is a specific fee imposed by state governments and is neither classified as goods nor services under the GST Act. Therefore, no GST on stamp duty and registration can be imposed.11 Feb 2024.
4. How will the Client know how much balance is left in the Deposit?
While you won't need to track your deposit balance, SpotDraft will provide you with a detailed statement by the 5th of the following month. This statement will include itemized information for each order.
If your deposit balance reaches a predetermined threshold, we'll generate an interim statement and send you a Sales Order to replenish the deposit. This ensures uninterrupted service and helps you stay informed about your account balance.
5. What if the balance runs out?
We will ensure that your deposit is maintained at a sufficient level. However, in the event that the deposit is exhausted and payment is not received, we may continue to process orders for a few contracts only. Once the service reaches a certain threshold, we'll temporarily suspend service until the outstanding payment is received.
6. How do we retrieve a stamp that is already used on a contract but later the contract was deleted?
Users can drop an email with the contract ID to help@spotdraft.com asking to share the scan copy of the stamp & the same can be retrieved.
7. If a Client has recently paid for the Deposit and again received a Debit Note and an Invoice. What are these for?
The Debit Note reflects the funds used for Stamp Duty and Vendor Issuing charges. The Invoice covers the service fee retained by SpotDraft. Both amounts have been adjusted from your deposit, so no further payment is required. These documents are provided to fulfill our tax obligations and your records.
8. How can the Client cancel an order?
Please note that once an order is placed, it's generally not possible to cancel or refund it. The order is immediately sent to the vendor, who is instructed to fulfill it within a specific timeframe. As a result, the stamp might already be in production by the time you request a cancellation. While we'll do our best to stop the order, we cannot guarantee success.
9. How can we change the text of the legend?
Unfortunately, the text for legend is standard and cannot be customized because it picks the details from contract key pointers such as Party names, Contract title and Reference ID which cannot be edited.
The text on stamp paper is called the legend and it is used to deface the stamp paper and link it to the document it is attached to. The legend usually includes the document ID which is a unique code that links the stamp paper to the document and/or the party names.