What is Franking ? Why Documents Need to be Franking ? This is important Question in Present Time. Everyone Ask What is Franking ? Why Documents Need To Be Franking? Only Banks Can Do Franking Or Other Firms Are Given Authority ?. Today we are providing all solutions of these question and also tell full details of franking.
Franking, on the other hand, is the process of actually getting the documents stamped. This refers to any types of marks or stamps that are affixed to a paper to indicate that the postage has been paid or does not need to be paid. Over time, the process was utilized for legal documents, in which the term refers to any stamps or marks on legal documents that indicate that any fees or taxes applicable on those documents have been paid.
we also provide What is the difference between Franking and Stamping. Every CA, CS , CMA and another Professional Student Want to Know for what is Franking Because this is common word in present time. Principles Send articles for Franking of the Documents but articles or trainees not know what is franking now you can scroll down below and check complete details regarding “What is Franking ? Why Documents Need to be Franking ?”
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What is Franking
Franking involves stamping. Oxford meaning of Franking is stamp a mark to indicate that amount has been paid.
Everyone want to know the difference between Franking and Printed Stamp Papers. If it is true, NJS ( Non Judicial Stamp ) Paper can be purchased from the Stamp Vendor and later on you can type on it. Because of Telgi effect Govt brought some changes. You first prepare a document on paper and before signing parties on it, take it to nominated Branch of a Bank pay the stamp duty there and then the bank will put stamp on your document indicating the value of the stamp duty. That is called franking.
FRANKING : This is one of the several methods of indicating the payment of stamp duty. Franking machines are installed in some Sub-Registrar office in the State. These machines frank upto a denomination of 999 rupees. An application indicating the amount of duty to be frank is made to the proper officer authorize under the rules along with the unexecuted typed or printed documents. The necessary amount is paid in cash to the proper officer and the required denomination is franked on the document and return to the applicant.
in Another Words – In so far I know previously the NJSP were printed in Government press and were available with the Stamp Vendors who used to take the same from Treasury but now the Government has authorized the banks and post offices who are selling them after franking the documents.
How does franking work?
In case you want to frank a document, you need to print the agreement on plain paper. Before executing the agreement (signing the papers), you will have to take it to an authorised bank or franking agency. They will provide you with an application form. You will have to fill the form, pay the stamp duty and get a stamp affixed on the document to indicate the amount of stamp duty paid.
For this purpose, a franking machine will be used. This machine uses a special adhesive stamp to affix the stamp on the document. You can sign or execute the document once the franking is done.
What are the charges for franking?
Franking charges different from one state to another. Every state will have its own minimum amount that needs to be paid for franking. While some charge a flat fee, there are others that charge a percentage of the sale value in case of property documents.
However, franking charges are usually only a fraction of stamp duty charges and are sometimes adjusted against stamp duty charges. For example, the minimum franking charge is pegged at 0.1% of the sale value for property documents in Bengaluru.
So, if you decide to buy a house for Rs. 50 lakhs, you will have to pay 0.1% or Rs. 5,000 as franking charges. You can adjust this against the stamp duty that you need to pay. Suppose the stamp duty for the agreement is 4.5%, then, you will have to pay only 4.4%. Note that for simple transactions, the franking charges can be as low as Rs. 50.
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