Bhubaneswar: Odisha government is going to levy higher stamp duty and registration fees on the newly auctioned mines.

The State has already finalised the auction of about 20 mines of iron ore, manganese and chrome ore last fiscal. The lease agreements are going g to be signed this month.

The govermwnt, meanwhile, proposing to hike the stamp duty and registration fees for the auctioned mines.

The government going to came out with a revised notification regarding chargeability of stamp duty and registration fees on execution of the instrument of mining lease.

The State revenue and disaster management has directed the IGR, Odisha to issed a fresh notification in this regard in suppression of its earlier letter number 126 dated 09.01.2017 IGR, Odisha.

Since the tenure of mining lease is for 50 years, the stamp duty and registration fees is to be computed four times of annual surface rent(including cess) of the leased area at the rate(s) as stipulated in Notification number 10291 dated 07.11.2013 of the steel & mines department read with clause (vi) of Article 35(a) of Schedule 1-A to the Indian Stamp (Odisha Amendment) Act 1986.

As regards stamp duty component payable on royalty, the same is squarely covered under Article 35 (a) (vi) and hence stamp duty to be assesed on four times the amount or value of estimated annual royalty which is to be calculated in accordance to the Notification number 312 dead 13.01.2012 of Steel & Mines department.

Security deposit has now replaced by performance security as provided under Rule 12 of the Mineral (Auction) Rules 2015. So performance security would be taken for stamp duty calculation.