The Hindu : Tamil Nadu News : Government gesture to self-help groups

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Saturday, Jan 09, 2010
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Tamil Nadu

Tamil Nadu

Government gesture to self-help groups

Staff Reporter

KARUR: Women self-help groups, panchayat level federations and economic activity federation have been exempted from remitting stamp duty in respect of loan documents executed by SHGs with banks for availing credit.

There is no stamp duty for instruments of agreement for finance, inter se agreement among members, deed of hypothecation and deed of mortgage executed by SHGs promoted by Department of Rural Development and Panchayat Raj.

There are over 8,000 SHGs in Karur district with over 96,500 members.

Over Rs. 85 crore has been given as bank credit to SHG members over the years through direct lending and subsidy-linked programmes.

Target

During the current year, a target of Rs. 37 crore has been fixed for extending credit to SHGs and so far banks have extended credit totalling Rs. 22 crore to SHGs in Karur district, sources said.

Order

Through GO MS No. 158 of the Department of Commercial Taxes and Registration dated November 5, 2009 the State Government has exempted the SHGs from stamp duty remittance for the said documents. It is gathered that the groups are eligible for waiver of stamp duty, which is Rs. 100 for inter se agreement, Rs. 10 for instrument of agreement for finance and the amount that is based on the variety and loan in case of mortgage. The stamp duty waiver follows the promise made by the Deputy Chief Minister M. K. Stalin in the Assembly sometime back.

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