Stamp duty on letter evidencing deposit of title deeds for additional loan
prabhakar sb
(Querist) 25 February 2014
This query is : Resolved
We have paid maximum amount of stamp duty @Rs50,000/- on Letter Evidencing Deposit of Title deeds about two years back as per the amended Stamp Act. The loan amount was Rs.30.00 Crore. Now, we have availed additional loan of Rs.5.00 crore thereby the total loan revised from R.30.00 to Rs.35.00 crores.
The banker is demanding stamp duty @0.1% on the additional loan of Rs5.00 crores.
Our objection is as under:
1. Art. 6 of the Karnataka Stamp Act is applicable.
2. No additional security given.
3. Since, the loan is an extension to the existing loan and we have paid the maximum stamp duty of Rs.50,000/- in the initial stage, there can not be additional duty on the additional loan of Rs.5.00 crore.
4. The agreement for additional loan is a link agreement to the original one.
5. The agreement for enhanced loan can not be LED as demanded by the Banker and is only an extension to the main agreement.
Respected Members are requested to clarify the above issues.
Thank in advance.
ajay sethi
(Expert) 26 February 2014
company can afford legal fees . contact a local lawyer
