Stamp duty
Gaurav Gujrati
(Querist) 13 December 2016
This query is : Resolved
Sir,
We were the borrower in Consortium which was constituted by Three Bank in which SBI was the leading bank. At the time of execution of Hypothecation Agreement with 3 lenders bank. We have paid stamp duty on the total loan amount. And thereafter our loan limit were increased vide another Hypothecation agreement executing between us and the lenders bank and we paid stamp duty on increased amount. Now out of three lenders bank we have settled with two banks and only one bank i.e Vijaya Bank is with us.
Now Vijaya Bank has increased our loan limit and asked us to sign independent hypothecation Agreement only with them and also asked us to pay stamp duty on total Loan Amount.
My question is that;
1) whether we are liable to pay stamp duty on total amount. However, we have paid two times stamp duty on differential amount at the time of consortium with three banks ?
2) whether stamp duty should be paid only on differential amount ?
3) Whether we are entitle to pay stamp duty on new agreement with independent lender or documents can be executed on stamp paper only ?
Your views would be appreciated.
Thanks
Rajendra K Goyal
(Expert) 13 December 2016
You asked:
whether we are liable to pay stamp duty on total amount. However, we have paid two times stamp duty on differential amount at the time of consortium with three banks ?
Reply:
Yes.
You asked:
whether stamp duty should be paid only on differential amount ?
Reply:
No.
You asked:
Whether we are entitle to pay stamp duty on new agreement with independent lender or documents can be executed on stamp paper only ?
Reply:
Stamp duty has to be paid, for agreement discuss with your Banker.
Rajendra K Goyal
(Expert) 13 December 2016
As the limit was consortium, it means it was a loan of huge amount.
You must be having legal adviser and tax consultant with staff having taxation background / CA in admin staff, first discuss with them, provided the problem is not hypothetical.
Stamp duty on hypothecation deed is like an agreement, should be negligible (less then 1000/-) as compared to loan amount involved.
Stamp fee on mortgage deed is as per amount involved and need to be paid on full amount of loan in case of simple mortgage, equitable mortgage charges may be negligible (if charged in the state).
H.M.Patnaik
(Expert) 13 December 2016
Your proposed loan agmt. with Vijaya Bank is certainly a new agmt. and as such liable for fresh stamping under the relevant Act.
Had this been a takeover of the entire loan by one of the Consortium partners by way of agmt. between consortium partners , the scene would have been different. Your lending bank is the best adviser in the matter.
H.M.Patnaik
(Expert) 13 December 2016
Your proposed loan agmt. with Vijaya Bank is certainly a new agmt. and as such liable for fresh stamping under the relevant Act.
Had this been a takeover of the entire loan by one of the Consortium partners by way of agmt. between consortium partners , the scene would have been different. Your lending bank is the best adviser in the matter.
Rajendra K Goyal
(Expert) 14 December 2016
Author has not cleared whether what is the expected amount of stamp fee?
For agreement it should be negligible for such a huge amount of loan?
For any increase in limit / before three years, hypothetical agreement need to be taken again or need to be revived.
However, repeat that the mortgage is afresh from consortium to individual Bank, it can attract stamp fee in absence of equitable mortgage.
