The Hindu : Tamil Nadu News : Post offices stop revenue stamp sale, thanks to row over commission

Online edition of India's National Newspaper
Thursday, Dec 23, 2004

Tamil Nadu

Tamil Nadu

Post offices stop revenue stamp sale, thanks to row over commission

By T. Ramakrishnan

CHENNAI, DEC. 22. Post offices all over the State have stopped selling revenue stamps, causing inconvenience to the public.

This is the result of a row between the Postal department and the State Finance department over non-payment of commission.

For over three weeks, those who went to post offices for revenue stamps have been turned away as the counter staff told them that there was no stock. Coimbatore was the last among cities, where revenue stamps were available in post offices till December 13. Post offices, numbering about 13,000, were selling revenue stamps after lifting the stock on payment to the treasury offices.

"We are unable to sell as we have not bought the stamps from the treasury offices of the State Government. Our senior officials in Delhi instructed us in September to deduct the commission due to the department from the Government while paying the value of the stamps. For this, the State Government is yet to issue an order," says Vatsala Raghu, Chief Postmaster-General of the Tamil Nadu Circle.

For the revenue stamps sold during October 1, 2003-June 30, 2004, the State Government is to give about Rs. 48.5 lakhs to the Postal department by way of commission.

The row was a sequel to the decision by the Standing Committee of Secretaries of Stamps and Registration to introduce the scheme of commission. At its meetings in October and December 2003, the committee, headed by the Additional Secretary (Revenue) in the Union Finance Ministry and comprising representatives of all States, fixed the commission at three per cent for the year from October 1, 2003; six per cent from October 1, 2004 and 10 per cent from October 1, 2005.

The postal official says that by selling revenue stamps, the department has been only rendering a service on behalf of the State Government. "But, it is we who are facing the public ire on this issue," she points out.

Government's version

A senior official of the State Finance department acknowledges the problem but says that the Centre a few days ago sent a notification to the States exempting transactions up to Rs. 5,000 from use of revenue stamps (till now, the exemption was for transactions up to Rs. 500). As most of the transactions come under this value, there will not be much problem for the people.

"We have intimated all our field offices about this communication," he says, adding the State Government will very soon settle the issue of payment of commission to the Postal department.

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