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 The Karnataka Pharma Retailers & Distributors Organization (KPRDO) has underscored the need to review the notices issued to medical establishments and exempt drug licenses from stamp duty. Some medical shop establishments have received notices under Sections 67B and 32A of the Stamps & Registration Act, demanding payment of stamp duty on drug licences.
KPRDO president, C Jayaram, in a communication to the Inspector General of Registration and Commissioner of Stamps, drew the attention to a pressing recent issue where some medical shops & establishments have received notices under Sections 67B and 32A of the Stamps & Registration Act, demanding payment of stamp duty on drug licences. The drug licenses are issued for a period of 5 years and demand for stamp duty every year exceeds more than licence value.
Noting it as a statutory requirement, Jayaram said that drug licenses are issued by the state government under the Drugs & Cosmetics Act, 1940 and Rules 1945, which is mandatory for operating medical shops & establishments. These licenses enable us to engage in the sale of medicines and cosmetics, not in dealing with movable or immovable assets.
We already possess GST certificates and are exempt from trade licenses. In light of the above, the request comes in to review the notices and look into the notices issued to medical shops establishments and clarify the applicability of stamp duty on drug licenses.
We now are looking forward for a consideration to exempting drug licenses from stamp duty, given their statutory nature and purpose. We understand that lease agreements between owners and tenants may attract stamp duty. However, we firmly believe that drug licenses should not be subject to stamp duty, Section 32A and 67B will have more relevance to movable and immovable properties as per our understanding, said Jayaram.
By addressing this issue and exempting drug licenses from stamp duty, medical shops & establishments can avoid unnecessary financial burdens and focus on providing essential healthcare services to the public. We look forward to your favourable consideration of our request. We are also seeking an opportunity for discussion on the matter, said Jayaram.
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