ATTORNEY / AGENTS :

 ATTORNEY / AGENTS :

• A Power of Attorney executed outside India must be stamped within 3 months of its receipt in India. As per stamp act of the state concerned.

• A Power of Attorney should be unconditional

• Death, insolvency or insanity of the account holder terminates the Power of Attorney

• Minor cannot give a POA to others

• A Power of Attorney holder cannot overdraw/close/transfer the account of the Principal.  Registration of POA is optional

• Sec 201 of Indian contract act cancels the POA if POA holder dies, become insane or insolvent.

• Mandate letters do not attract stamp duty whereas Power of Attorney attracts stamp duty

Rationale: Mandate letter do not attract stamp duty because these letters are considered on as an operational instruction to the banker.  Such letters are exempted from stamp duty as per Indian stamp act.   Mandate letters should not be witnessed, otherwise it will attract stamp duty   

POA – Delegatee cannot further delegate. Sec 190 Indian Contract act.