Bhubaneswar :
In a significant move that is likely to further
affect the mining sector, the Odisha steel and mines department has reportedly
asked the authorities to collect the stamp duty from mines operating under
deemed extension by July 9, failing which the operation will be stopped.
“It
is necessary to ensure collection of the stamp duty from the mining lessees who
are availing the benefit of deemed extension of the lease deed to fulfill the
objective of the Amending Act failing which mining operation shall be stopped.
You are, therefore, requested not to allow operation of the mines, unless the
payment of stamp duty is made on or before 9th July,” said Principal Secretary
Steel and Mines Rajesh Verma in a letter to all the District Collectors.
The
stamp duty will be realized as per the provisions of the Indian Stamp (Odisha
Amendment) Act, 2013 and Odisha Stamp Rules, 1952 as amended by the amending
rules of 2013.
Informing
that the instructions have been issued with the concurrence of the Revenue and
Disaster Management department (R&DM), which collects stamp duty during the
lease deed, Mr.Verma asked the mining officers of all the mining circles to
strictly ensure compliance of the order.
The
letter also said that in case of renewals covered under this sub-section and
where the lease expires after July 9, the payment of requisite stamp duty has
to be made by the renewal applicant on or before the date of expiry of the
lease, failing which the miners shall also not be allowed to operate the mines
under deemed extension provision.
It is
to be noted that the R & DM department had issued necessary instructions on
25 May to all the Collectors to ensure payment of stamp duty by the applicants
for renewal of the mining lease who have made such applications to the state
government prior to the expiry of the lease.
The
State Government had issued Gazette notification after bringing an amendment in
the Indian Stamp (Odisha amendment) Bill-2013, which provides for collection of
stamp duty from the mines operating under deemed extension.
Odisha
Government expects to mop up additional revenue of about Rs 1,000 crore
annually from the mining sector. It amended the Act and has decided to levy 15
per cent stamp duty on mining leases in future as well as for preceding period
from the mines operating under deemed extension.
The
newly inserted section 3 (A) of the Indian Stamp (Odisha Amendment) Act, 2013,
says that on every instrument of grant or renewal of a mining lease, the stamp
duty chargeable shall be equivalent to 15 per cent of the amount of average
royalty that would accrue out of the highest annual extraction of minerals
permitted under the approved mining plan multiplied by the period of such
mining lease.
Reported by Tapan Moharana
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