I have got a doubt whether the sub-net mask is used only to seperate different LANs in a WAN or it has got some connection with Differentiation of Domains. I mean, in a WAN, is it mandatory that Different domains will have different & unique subnet mask.
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DNS and subnet masking are really separate issues. A DNS record only associates a hostname with a particular IP address (or addresses) and does not involve a subnet mask.
Subnet masking is for dividing the IP address space into manageable chunksand keeping the routing in order to get to that address.
So to answer your question, no, it is not mandatory that different domains have a different and unique subnet mask.
Nor is it even necessary that their IP addresses be unique. For example, you could have an Exchange server sitting at a particular IP address receiving mail for many different domains. For all of those domains, the MX record would point to the same IP address.
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DNS Usage & link between DNS & sub-mask