ELECTRONIC STAMP DUTY PAYMENT SYSTEM
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
ELECTRONIC STAMP DUTY PAYMENT SYSTEM
ABSTRACT
The goal of this study was to create a computerised method for applying for and paying stamp duty. This is only a shift in the assessment procedure, that is, knowing what you should pay and for what instrument, as opposed to really paying for stamp duty.
The study critically examines the manual method of collecting stamp duty in Nigeria and uses the ideas gathered to design a new site (Electronic Stamp Duty Payment System) for use by Tax Administrators in Federal Inland Revenue Services, Credit Officers in banks, insurance companies, hire purchase companies, taxpayers/clients, and others from anywhere in the country to pay stamp duty.
The new site enables the administrator to login, create instrument types, validate declared instruments, authenticate documents, generate stamp certificates, view instrument property status, and generate account reports.
Additionally, the new site allows clients to login, create accounts, declare instruments, make payments, track instrument declaration progress, examine instrument property status, and apply for duplicate certificates. Object oriented analysis and design techniques were used to analyse and design the system.
It was written in Java and developed with the Eclipse development environment IDE. Other technologies utilised for the application include the unified modelling language tool (UML) for analysis and design, HTML, CSS, and the mySQL database management system for long-term data storage.
The new system incorporates innovations such as an online application for duplicate stamp certificates, a certificate authentication capability on the FIRS web portal to alleviate the concern of fake/counterfeit certificates, and automatic generation of stamp certificates to eliminate the fatigue of hand embossment.
CHAPITRE ONE
1.0 Introduction
With the development of digital technology, postal services across the country appear to be rapidly falling into obscurity. What should be done in terms of marketing to prevent the Nigerian postal service from going out of business?
To revitalise this organisation, efforts will be made to revitalise receipt stamping (N50- stamping) (in accordance with the Stamp Duty Act 2004, as revised in 2010).
This law specifies that receipts for transactions in Nigeria will not be verified unless they bear postal stamps. Legal documents (e.g., lease agreements, deposit agreements, staff employment contracts, staff promotion letters, purchase order agreements, and any other legally binding transaction) would be void unless the duty stamp was applied to them.
Stamp duty is a Non-Tax Revenue (NTR) imposed by special Acts of Parliament and managed by ministries and other government departments. It is not a transaction tax, but rather a tax on business and legal documents that record and give effect to specific transactions.
In layman’s terms, stamp duty is a levy, fee, or duty levied on valuable documents to make them legal in court. A value document is one that typically expresses the interests of two or more parties. Stamp duty is either ad valorem (at a percentage rate) or fixed on specified instruments.
And where the transaction is conducted orally or entirely via the actions of the parties, no duty is owed because no document is available for stamping.
The federal government charges or collects duties on instruments relating to matters between a firm and an individual or groups, whereas state governments charge or collect duties on instruments executed between people or groups. However, the applicable duty rate must be agreed upon with the Federal Government.
The following are some examples of instruments and value documents that attract Stamp Duty: agreement or memorandum of agreement, hire purchase agreement, solemn declaration, affidavit, mortgaged deed, debenture, lease agreement, letter of credit, promissory note, divorce deed, and so on. Again, not all documents are subject to duty.
Exempt instruments include cheques, documents relating to the transfer of stock and shares, bank records relating to savings and transfers between affiliated companies, and so on.
2
Most transactions are now conducted electronically, which has hampered the collection of stamp duty using sticky paper stamps on such transactions because they are not in physical form. As a result, in order to effectively monitor these transactions, an electronic technique must be used.
The earlier system of physical embossing, on the other hand, was hostile and characterised by continual movement. There were long lines, traffic jams, and delays in service delivery.
Furthermore, the embossing machine used to make impressions on the instruments was used by other Government agencies, and the proper stamp was pressed on the instruments at a single location–the Ministry of Finance, Planning, and Economic Development.
The method was manual, with assessments performed by the Federal Inland Revenue Service, making it difficult for clients to grasp the assessment process and basis of assessment. A consumer was required to pay the fees at only one bank and return the next day.
Another challenge was the difficulty in storing and retrieving stamp records; the old process was prone to paper and process-related fraudulent practises; the procedure was cumbersome and had challenges such as an unsecure and unreliable collection mechanism and poor service delivery due to staff overload.
This puts a number of clients at danger of possessing instruments that have not been properly stamped.
As a result, the purpose of this study is to solve challenges related to this condition.
Specifically, to create a computerised system for applying for and paying stamp duty. This is just a change in the assessment procedure, that is, knowing what you are expected to pay and for what documents (instrument) and paying stamp duty.
The new system will allow for amendments, such as when the incorrect document was selected during declaration on the portal. It will also promote voluntary compliance and streamline operations.
Captures data into a secure database, allowing clients’ data to be easily assessed at any time. And allow users to do transactions from the convenience of their own homes, offices, or any other location with internet access.
1.1 Statement Of The Problem
One of the most noticeable issues in stamp duty collection is stamp counterfeiting.
2. Inadequate revenue generating.
3. Tax education is insufficient.
4. Revenue leakages from the sale of stamps to the government
1.2 Objectives Of The Study
To create a system that can: 1. eradicate stamp counterfeiting.
2. lower compliance expenses and improve tax compliance.
3. allow for easy discovery of defaulters, as required by inefficient manual systems
1.3 Significance Of the Research
If adopted in practise, the study would be extremely beneficial to Nigerian governments, FIRS, taxpayers, policymakers, researchers, and academicians in the following ways:
1 Fraud detection: The stamp certificate is generated automatically in e- Stamp via a secure process that assigns a certificate barcode that is registered in our database.
This means that if a fake/counterfeit certificate is created, it will not be stored in our database and cannot be evaluated in our system.
2 The technology reduces administrative work and boosts employee productivity:
The stamp certificate is generated electronically, eliminating the fatigue of physical embossment.
This effectively means that stamps will no longer be used to emboss instruments.
3 Application for duplicate stamp certifications online: If the little stamp is wrinkled or destroyed, as in the previous situation of physical embossment, the system will allow you to obtain a duplicate certificate if necessary.
4 It benefits both the implementing organization’s and the country’s economies: Increased stamp revenue for governments as a result of more persons wanting to have their instruments issued stamp certificates as a result of acquired knowledge and a more simpler process.
5 It saves you time: Reduced contact hours at the FIRS office, allowing taxpayers to spend their time on other valuable activities.
6 Stamp duty payments can now be made in the client’s preferred FIRS partner bank.
Need help with a related project topic or New topic? Send Us Your Topic