The Government of Punjab on February 02, 2024, issued a notification regarding all types of loans on moveable property/assets have been brought, under one category.
The State Government has observed that different Banks along with other Financial Institutions, while crediting vehicle loans are following procedures and charging stamp duty, as per their official customs, set by their predecessors. In such a way, it is creating a huge procedural lapse, as well as a loss of crores of rupees, to the state exchequer.
As per the existing law Before the amendments, entry 6 of schedule I-A, depicted equitable mortgages and loans about moveable assets. The stamp duty to be levied was divided into different segments i.e. 0.30%, 0.25% etc. and Rs.2000/- for General Power of Attorney and Rs. 1000/- for Special Power of Attorney. The financial institutions, as explained in the above Para are charging, different tariffs of stamp duty, as per their customs, against the provisions of the act, creating confusion amongst themselves, to the public and creating huge losses to the state exchequer.
[Notification No.1/9/2022/-ST/2 1388-93]
