G.O.Ms.No.39, Registration Fees for Power of Attorney Instruments, 2014

What the amendment covers

Government Order G.O.Ms.No.39 of the Commercial Taxes and Registration (J2) Department changes how registration fees are calculated for certain Power of Attorney instruments. The amendment came into force on 2 June 2014 and was directed to be published in an extraordinary issue of the Tamil Nadu Government Gazette.

The change addresses two practices identified by the Inspector General of Registration. Individual property owners were using one common Power of Attorney in favour of the same person to avoid fees on separate instruments. Some Power of Attorney instruments given for consideration were also stating a low consideration amount, resulting in a lower fee calculated at 1 per cent.

Who may be affected

The amended Table of Fees may affect:

• Individual owners of separate properties who jointly execute one Power of Attorney to sell immovable property in favour of the same person.
• Persons receiving authority to sell properties belonging separately to multiple owners.
• Anyone registering a Power of Attorney that records consideration.
• Property buyers or professionals checking whether the correct registration fee was paid on a Power of Attorney used in a transaction.

Key provisions

• When a Power of Attorney within the relevant fee categories is executed by more than one person, a separate registration fee must be charged for each person if they are neither co-owners by an act of the parties nor coparceners by operation of law.
• The separate fee for each person is charged at the applicable rate under the relevant fee category.
• For a Power of Attorney given for consideration, the fee is the higher of the fee calculated on the stated consideration or the registration fee applicable to the corresponding Power of Attorney without consideration.
• The earlier fee structure referred to in Government Order G.O.Ms.No.79 charged Rs. 1,000 for a Power of Attorney to sell immovable property executed in favour of a family member and Rs. 10,000 when executed in favour of others.
• Before the amendment, a common instrument executed by separately owning individuals could attract only one fee of Rs. 1,000 or Rs. 10,000, while separate instruments attracted fees individually. The amendment introduces multiple fees in the specified circumstances.