Here's a breakdown of the key points about stamp franking:
- Function: Provides proof that stamp duty, a tax levied on legal documents, has been paid.
- Process: Typically involves an authorized bank using a franking machine to mark the documents or attaching a franking label with the relevant denomination.
- Alternative: Pre-printed franked stamp papers can also be used.
- Purpose: Validates documents and makes them legally enforceable.
It's important to distinguish between stamp duty and franking itself:
- Stamp Duty: The actual tax levied by the government on certain documents.
- Franking: The process of proving that the stamp duty has been paid.