Restricted powers of attorney
The Hindu : Restricted powers of attorneyN.C.S. RAGHAVANARVIND RAGHAVANIn view of the heavy stamp duty payable on powers of attorney given to persons (other than close relatives) where power to sell is given, various forms of restricted powers of attorney have come into vogue which are discussed below.General Power of Attorney is only for a limited purpose of appearing and representing the principal before statutory authorities in respect of statutory formalities and compliances relating to rights and interest and transactions in immovable property. The stamp duty payable is only a nominal sum of Rs.100 as no power to sell is given.Where a General Power of Attorney is also given only for the restricted purposes of entering into agreements for sale or transfer without the right or authority to finally effect the sale or transfer, such restricted powers of attorney will attract the nominal stamp duty of Rs.100 only.In this regard, it is useful to note that the above types of restricted powers of attorney can also be given to a promoter or a developer provided the same are given separately apart from the execution of a formal development agreement.Hence, it is to be noted that when even a restricted power is given to a promoter or a developer as above, the following stamp duty discussed in the earlier issues is leviable.Where the market value of property• 1) Does not exceed Rs. 1 crore — Rs. 10,000.• 2) Exceeds Rs. 1 crore and does not exceed Rs. 2 crore — Rs. 20,000.• 3) Exceeds Rs. 2 crore and does not exceed Rs. 5 crore — Rs. 50,000.• 4) Exceeds Rs. 5 crore and does not exceed Rs. 10 crore — Rs.1,00,000.• 5) Exceeds Rs. 10 crore — Rs.1,50,000.When a Comprehensive Power of Attorney is given for consideration, such a power of attorney becomes an irrevocable power of attorney constituting an agency coupled with interest and hence the stamp duty…More
