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Dipali (Asst Company Secretary)     31 August 2015

Stamp duty payable on agreements

I am executing a HR consultancy agreement. The agreement also contains an indemnity clause from the consultant in favour of my company. Non-judicial stamp paper of how much value should I use for the same ? Can I execute it on my letter head ? If Indemnity clause is included in any agreement do we have to use stamp paper of the value sufficient to cover the indemnity clause ? Can I not pay the stamp duty  later, if any dispute arises ?

Thanks in advance



Learning

 6 Replies

Jatin Mittal (Corporate Lawyer)     01 September 2015

Hi Dipali

Whenever, an indemnity clause is added to any agreement, then stamp duty is payable. You can execute it on a non judicial stamp paper of Rs. 100. I would suggest you get it done at the present date as the amount is not much for which you should hold on and wait for any dispute to arise. For any other clarification, write to me at mittaljets@gmail.com. No charges for the consultation.

Dipali (Asst Company Secretary)     01 September 2015

Hello Jatin,

Thanks for your reply. Stamp duty payable for indemnity in state of Maharashtra is Rs. 500/- So for a two way indemnity it would be Rs. 1000/- + Rs. 100/- for the agreement. So now it would cost Rs. 1100/- for each agreement with two way indemnity. Please correct if wrong.

ThankS

Dipali Shinde

Jatin Mittal (Corporate Lawyer)     01 September 2015

Hi Dipali

Yes you are right, the stamp duty on indemnity has increased to Rs. 500 by an amendment in the year 2015.

E Drafter   01 August 2016

Stamp Duty varies from State to State so you need to check from your State about the Stamp Duty. For Instance the Stamp Duty for Indemnity Bond in Delhi is Rs. 100/-

Regards,

Team eDrafter

eDrafter.in - Drafts your Document

E Drafter   01 August 2016

Stamp Duty varies from State to State so you need to check from your State about the Stamp Duty. For Instance the Stamp Duty for Indemnity Bond in Delhi is Rs. 100/-

Regards,

Team eDrafter

eDrafter.in - Drafts your Document

MRINAL Banerjee   30 August 2016

What will be the stamp duty on Bank Guarantee of Rs.3.82 Crore as per Karnataka Stamp Duty Act.

M. Banerjee


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