Paytm parent fined Rs 47.12 lakh for unpaid stamp duty on equity shares
This penalty relates to the non-payment of stamp duty totalling Rs 1,43,16,535 for the allotment of 10,26,386 equity shares of Rs 10 each, One97 Communications said in an exchange filing.
parent One97 Communications has been ordered by the Office of Collector of Stamps, New Delhi, to pay a penalty of Rs 47.12 lakh for not paying stamp duty on allotment of equity shares in previous years.
The penalty relates to non-payment of stamp duty totalling Rs 1,43,16,535 upon allotment of 10,26,386 equity shares of Rs 10 each, the company said in an exchange filing.
"The company had submitted applications for payment of stamp duty at relevant time with the Office of Collector of Stamps, New Delhi, although there were delays of a few days in submission of some applications. The said applications have been processed by the Office of Collector of Stamps, in sequence. We have taken all necessary steps to be more diligent in avoiding such instances in the future," the filing said.
Stamp duty is a tax imposed by the government on legal documents, especially those related to property transfers, share issuances, and other financial transactions. It is required for the legal validity and enforceability of these documents, payable when specific transactions, like property ownership transfers or legal agreements, occur.
Earlier in March, the Financial Intelligence Unit-India (FIU-IND) imposed a Rs 5.49 crore penalty on Paytm Payments Bank Ltd for violating the Prevention of Money Laundering Act.
The penalty stemmed from the bank's alleged involvement in facilitating illegal activities, including online gambling, through its accounts. The FIU-IND found that the bank had failed to comply with anti-money laundering, combating financing of terrorism, and KYC (Know Your Client) rules.
Paytm Payments Bank responded that the issues pertained to a discontinued business segment and it had since then improved its monitoring and reporting systems.
Edited by Swetha Kannan