Hi. Our company is 5 years old, and we are a team of 15. We have executed appointment letters on our letterhead, duly signed and stamped with the company seal. We also gave a copy of the same to the employee. We have a new investment company that recently joined us, and it has requested us to stamp all the appointment letters (already executed with our current employees at the time of their joining) in accordance with the Indian Stamp Act, 1899. I have a couple of questions.
1. What do they mean by this? Is it really necessary?
2. How can we get those letters stamped after 3-4 years of issuing them?
3. Should we issue them on stamp paper going forward?
From India, Hyderabad
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1. What do they mean by this? Is it really necessary?
2. How can we get those letters stamped after 3-4 years of issuing them?
3. Should we issue them on stamp paper going forward?
From India, Hyderabad
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Hello,
Your new investment partners are asking for the appointment letters to be stamped according to the Indian Stamp Act, 1899, because it is a legal requirement in India to pay stamp duty on certain documents to make them legally valid. Appointment letters come under this category.
1. Importance of Indian Stamp Act, 1899:
The Indian Stamp Act, 1899, is applicable to all documents, including appointment letters, where stamp duties must be paid. If a document is not properly stamped, it may not hold up in court or in any legal proceedings. Therefore, it is indeed necessary to stamp the appointment letters in accordance with this act.
2. How to stamp already issued appointment letters:
- You can apply for the stamp duty on these documents via e-stamping. This is a computer-based application and a secured way of paying Non-Judicial stamp duty to the government.
- Visit the SHCIL website (Stock Holding Corporation of India Limited), which is the official website for e-stamping.
- Click on the 'e-stamping' option and follow the instructions provided to pay the stamp duty.
- After paying the stamp duty, you can print the certificate of e-stamping and attach it with the relevant appointment letters.
3. Future procedure for issuing appointment letters:
In the future, when issuing appointment letters, it would be a better idea to use stamp paper. Here's how you can do it:
- Determine the correct stamp duty applicable for appointment letters in Hyderabad. You can consult a legal expert for this.
- Buy a stamp paper of the required value from a licensed vendor.
- Print the appointment letter on this stamp paper and have it signed by the company and the employee.
Remember, the duty stamp is a form of tax and must be paid in full at the correct time. Non-payment or delay can result in penalties. Please consult with a legal expert to ensure you are following all the rules correctly.
Hope this helps! 🤗
From India, Gurugram
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21Your new investment partners are asking for the appointment letters to be stamped according to the Indian Stamp Act, 1899, because it is a legal requirement in India to pay stamp duty on certain documents to make them legally valid. Appointment letters come under this category.
1. Importance of Indian Stamp Act, 1899:
The Indian Stamp Act, 1899, is applicable to all documents, including appointment letters, where stamp duties must be paid. If a document is not properly stamped, it may not hold up in court or in any legal proceedings. Therefore, it is indeed necessary to stamp the appointment letters in accordance with this act.
2. How to stamp already issued appointment letters:
- You can apply for the stamp duty on these documents via e-stamping. This is a computer-based application and a secured way of paying Non-Judicial stamp duty to the government.
- Visit the SHCIL website (Stock Holding Corporation of India Limited), which is the official website for e-stamping.
- Click on the 'e-stamping' option and follow the instructions provided to pay the stamp duty.
- After paying the stamp duty, you can print the certificate of e-stamping and attach it with the relevant appointment letters.
3. Future procedure for issuing appointment letters:
In the future, when issuing appointment letters, it would be a better idea to use stamp paper. Here's how you can do it:
- Determine the correct stamp duty applicable for appointment letters in Hyderabad. You can consult a legal expert for this.
- Buy a stamp paper of the required value from a licensed vendor.
- Print the appointment letter on this stamp paper and have it signed by the company and the employee.
Remember, the duty stamp is a form of tax and must be paid in full at the correct time. Non-payment or delay can result in penalties. Please consult with a legal expert to ensure you are following all the rules correctly.
Hope this helps! 🤗
From India, Gurugram
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