In the first and second parts of this article that were featured in the previous weeks, we had discussed the general basis for the administration of Stamp duties, dutiable instruments and how to stamp an instrument. Also, time for stamping, exempted products and penalties for noncompliance were covered in the second part. The basic terminologies and other aspects of stamp duties administration in Nigeria will be reviewed under this part.
CONCEPTUAL CLARIFICATION OF TERMS
Stamp in this concept is referred to as an impressed pattern or mark using an engraved or inked block die or an adhesive stamp or an electronic stamp or an electronic acknowledgement for denoting any duty.
These include every written document and electronic documents.
This term is used when the die is impressed or fixed on any document to indicate any duty paid. This shows the amount of duty paid on the instrument at a glance.
This is the stamping of any document known as an instrument by the use of a die and stamping machine.
THE STAMP DUTY COMMISSIONER
The Commissioner of Stamp Duty is appointed to supervise the implementation of the provisions of the Act. The Commissioner of Stamp Duty for the Federal Inland Revenue Service (FIRS) is appointed by the President of the Federal Republic of Nigeria while that of the state is appointed by the Governor of the respective State.
MANNER OF DENOTING STAMP DUTIES
The stamping of documents can be done either by embossing die; affixing an adhesive stamp, or affixing a postage stamp in place of adhesive stamps or printing on the instruments.
Section 5 of the Stamp Duties Act provided the following forms or methods by which stamp duties may be denoted:
Note: The consequence of stamping an instrument with an adhesive stamp is such that an instrument must be stamped on or before its execution unlike in the case of impressing stamp which could be stamped within a specified period after execution.
ELECTRONIC STAMP DUTIES
E-Stamping is an electronic process of stamping instruments or documents upon payment of the approved duties electronically and generating the receipt of payment without coming in contact with tax officials.
Procedure for e-stamp duties payment to FIRS
|STEPS||HOW TO PAY FOR E-STAMP DUTIES FOR FIRS (PROCEDURE)|
|Step 1||Visit www.firs.gov.ng, click on e-services, also click on e-stamp duty. After that click on sign up here. Create your account or log in using your existing account details on ISDS. Use your email ID preferably for username.|
|Step 2||Search and select the stamp duty instrument from the list of services and rates menu or MDA menu.|
|Step 3||Provide details of the transaction by completing the relevant fields including TIN and transaction amounts. The Tax Identification Number (TIN) of all parties involved in the transaction will be required|
|Step 4||View the summary page for correctness.|
|Step 5||Make payments using any of the payment options. E.g. Debit cards, Credit cards, Pay at bank etc.|
|Step 6||Upon successful payment, ISDS will forward an electronic copy of the Stamp Duty Certificate to the current logged-in email address of the user.|
|Step 7||Log out or continue to process another stamp duty transaction.|
|Step 2||Search and select the stamp duty instrument from the SERVICES menu or MDA menu.|
Advantages Of E-Stamping
A duty-payer can at any time and on any day pay his duty, print and re-print his payment E-receipt at the comfort of his room.
Disadvantages Of E-Stamping
Please watch out next week for the final and concluding part of our review of the Administration of Stamp Duties in Nigeria.