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Zara (T&D Off)     24 June 2012

Poa

We are buying a property in Bangalore and we are NRIs. Our housing loan was approved and we were asked by our bank to give a GPA for the loan to be disbursed.

We went to the Indian embassy in Qatar and got the GPA attested and we sent the document to India to our friend who was nominated as the attorney. We were told to get franking done so the document is authenticated in India.

When our friend went to get the notary done for the GPA before franking, we were told that we would have to pay 8% of the property value as the notary cost (stampaper cost). From what I have checked this seems to be applicable for sale and not for loan disbursement.

Can some one give me a little more information on this process?



 5 Replies

A V Vishal (Advocate)     24 June 2012

Where is the property situated and what is the notary's role?

Zara (T&D Off)     24 June 2012

The property is in Karnataka. When our POA went to get the franking for the GPA, she was asked to get the notary done before franking.

Hence the notary. Though the document is already attested by the Indian Embassy in Qatar already.

S Jadhav 98336 98330 (Jadhav & Associates)     25 June 2012

Please provide a copy of the PoA. Is there a clause which states that the PoA holder can do whatever he/she wishes with the property or give him/her rights to sell the property OR is it only providing heim the PoA for handling the loan related documentation and work?

Also, is the PoA revocable or irrevaocable?

The stamp duty is required to be paid if the registrar feels that the PoA is actually a transfer of the property by giving it a different name.

S Jadhav

Zara (T&D Off)     25 June 2012

Attached is the template that we received.


Attached File : 908795565 gpa-individual.doc downloaded: 98 times

A V Vishal (Advocate)     26 June 2012

There are two kinds of POA. One is the GPA. It gives wide powers to an agent to act on behalf of the principal as detailed in the deed. It is not confined to any specific act relating to a specific subject. The second is a specific power of attorney (SPA). This is given in respect of a single specified transaction like buyng or selling of a particular property. Once the particular act is completed, the SPA gets naturally revoked.

Power of attorney attracts stamp duty which varies from State to State. Article 41 of the Karnataka Stamp Act prescribes the stamp duties.

Stamp duty payable

If the POA is executed for the sole purpose of registration of documents in relation to a single transaction - Rs 100.

For authorising a person to act in a single transaction - Rs 100.

For authorising not more than five persons to act joint and severally in more than one transaction - Rs 100.

For authorising more than five persons but not more than 10 persons to act jointly and severally in more than one transaction, or generally - Rs 200 In case given for consideration and authorising the attorney to sell property, the same duty as a conveyance for the market value, equal to the amount of the consideration.

If given to a promoter or developer along with a joint venture agreement, for construction or development of property situated in Karnataka - Rs 1,000 In case given to a person other than the father, mother, wife/husband, son, daughter, brother, or sister in relation to the executant authorising the person to sell property in Karnataka - Rs 8 for every Rs 100 on the market value of the property. The duty paid on this instrument is adjustable towards the duty payable on the instrument of sale or transfer executed subsequently in favour of either the attorney holder or any other person.

In any other case - Rs 100

Any POA executed outside India needs authentication. It has to be executed in the presence of certain designated officers - notary public, a court, consul or vice consul, or a representative of the Central Government. These documents need to be stamped within three months from the date of receipt in India.

Perusal of the attached document does not warrant payment of 8% duty, advise to directly approach the registering authority for determination of stamp duty.


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