For Movable Assets:
- Should be notarised in India or Abroad.
- Shouldbe stamped as per local Stamp Act, in Gujarat, it is Rs 300.
Important clauses of POA to manage Movable Assets:
- To carry out all the operations of Depository Account including instruction for debit credit to the demat account.
- To carry out operation of Government supported savings schemes with specific mention of names.
- To carry out the affairs of a Hindu Undivided Family HUF where the NRI is the Karta of his HUF.
- To carry out the affairs of Partnership or Proprietorship Concern.
- To carry out functions as a Director of a Company.
- To make and accept all claims under a WILL or under succession.
- To encash fixed deposits even before maturity and close bank accounts (subject to acceptance by the bank).
- POA can be for a limited period The period should be clearly.
- stated in the POA document.
For Immovable Assets:
The procedure for transfer of Immovable Assets with a POA in the state of Gujarat is notified by the the above circular. Following is the analysis of the same.
- All POA for management or transfer of immovable assets have to be stamped and registered.
- It can be for a limited or unlimited period If the period is limited, it has to be clearly stated in the POA.
- POA giver and/or receiver can be in or outside India. Different compliances to be followed have been stated in the following slides.
Where POA giver – receiver both are in India:
- The POA should be registered with the jurisdictional sub registrar office where the property is located.
- The POA can be registered with any sub registrar office in Gujarat/anywhere in India if the POA giver is suffering from illness , employment at distant location, working with armed forces , serving prison sentence , etc.
- A sub registrar which does not have jurisdiction over the immovable asset shall not register such POA unless the document of POA contains the objects/reasons why the POA is registered with sub registrar other than the jurisdictional sub registrar.
- Where POA has been registered at any registrar office other than the sub registrar where the property is located the sub registrar registering the transfer of property on the basis of the POA shall verify the correctness of the POA.
- Differential stamp duty needs to be paid if the POA is executed outside Gujarat and the stamp duty in Gujarat is more.
Where the owner of immovable asset is out of India and intends to transfer the asset in India:
- The owner of the immovable asset himself/herself signs the sale document in and a POA to present the sale document and confirms the signature of the seller who has signed the sale document outside India
- The sale document and POA should be signed before the Notary Public or Judge or Magistrate or Indian Consul or Vice Consul.
- Stamp duty needs to be paid if the POA is executed outside India without payment of stamp duty.
Where the POA giver is outside India and receiver is in or outside India:
- POA should contain reasons why the same is signed outside India It should be signed before the Notary Public, Judge, Magistrate, Indian Consulate or Vice Consulate.
- The POA should be produced before the stamp duty authorities within the stipulated time limit (90 days after receipt in India), for affixing appropriate stamp duty on it. The date on envelop shall be considered as the date of receipt in India.
- The POA should be produced within the stipulated time limit before the jurisdictional sub registrar for registration. The jurisdictional Registrar shall seek confirmation about the signature of the POA giver and register the POA.
- It is advisable to give a Letter of Authority to a lawyer, to represent the parties before authorities in India where the POA giver and receiver have signed the POA outside India If the POA receiver is in India he/she needs to be present before the jurisdictional Sub Registrar for registration.
Where the POA is executed outside Gujarat in respect of immovable property located in Gujarat:
- The same process as stated above has to be followed as in the case where the POA giver is outside India However, the difference of stamp duty between the amount payable in Gujarat and amount paid outside Gujarat, has to be paid.
Stamp Duty on POA:
- Appropriate stamp duty has to be paid, which is Rs 300 for POA in Gujarat to close relatives ( mother, brother, sister, wife, husband, son, daughter, grandson, granddaughter)
- When POA given to any person other than close relative market value based stamp duty will be liable on the POA.
