G.O. Ms. No. 39, Registration Fees for Powers of Attorney, 2014
The Commercial Taxes and Registration (J2) Department issued G.O. Ms. No. 39 dated 30 May 2014 to amend the Table of Fees under the Registration Act, 1908 for registering powers of attorney to sell immovable property. From 2 June 2014, separate fees apply when unrelated individual property owners execute one common power of attorney, and a power of attorney with consideration attracts either 1 percent of the consideration or the applicable fee for one without consideration, whichever is higher.
What the amendment governs
G.O. Ms. No. 39 dated 30 May 2014, issued by the Commercial Taxes and Registration (J2) Department, changes how registration fees are calculated for instruments of power of attorney authorising the sale of immovable property. The amendments came into force on 2 June 2014.
The earlier fee structure referred to in the order imposed:
- Rs.1,000 for a power of attorney to sell immovable property executed in favour of a family member.
- Rs.10,000 for such a power of attorney executed in favour of another person.
Common powers of attorney
The amendment to the Table of Fees addresses cases where several people who separately purchased properties through different documents execute one common power of attorney in favour of the same person.
- A separate registration fee must be levied for each person executing the instrument if they are neither co-owners by act of parties nor co-parceners by operation of law.
- The fee for each person is charged at the applicable rate for a power of attorney in favour of a family member or another person.
- The amendment prevents separately owning individuals from paying only one registration fee by combining their authorisations into a single instrument.
The separate fee requirement does not describe all joint ownership arrangements. It specifically applies when the executants are neither co-owners by act of parties nor co-parceners by operation of law.
Powers of attorney with consideration
G.O. Ms. No. 39 also changes the fee calculation where consideration is stated in a power of attorney.
- The registration fee based on consideration is 1 percent of the consideration mentioned in the instrument.
- That amount must be compared with the applicable registration fee for a power of attorney without consideration.
- The higher of the two amounts must be collected.
The Commercial Taxes and Registration (J2) Department recorded that the change was intended to prevent revenue loss caused by stating a very low consideration or by combining powers given by separate property owners into one document.
Who may be affected
The amended Table of Fees may affect individual property owners who jointly sign one power of attorney despite holding properties separately, people receiving authority to sell those properties, and parties registering a power of attorney that states consideration.
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Common questions
When did the amended power of attorney registration fees take effect?
The amendments made through G.O. Ms. No. 39 dated 30 May 2014 came into force on 2 June 2014.
Can several separate property owners pay one fee by signing a common power of attorney?
Not where the executants are neither co-owners by act of parties nor co-parceners by operation of law. A separate registration fee must be levied for each such person.
How is the fee calculated if the power of attorney states consideration?
The fee is 1 percent of the consideration or the applicable registration fee for a power of attorney without consideration, whichever is higher.
What fees for powers of attorney to sell property are recorded in the government order?
The order records a fee of Rs.1,000 when the power is given to a family member and Rs.10,000 when it is given to another person.
