What is the stamp duty applicable if the a bank guarantee is issued in mumbai, maharashtra?
vivin
(Querist) 15 December 2016
This query is : Resolved
Both the issuing bank and beni are located in Mumbai.
adv.bharat @ PUNE
(Expert) 15 December 2016
For every 1000 rupees u need to give 25 to 50 Rupees as commission to bank.
Will u appreciate this answer by giving like on my LCI profile?
vivin
(Querist) 15 December 2016
Dear Sir, I am referring to the stamp duty applicable for issuance of the BG, not commission.
kavksatyanarayana
(Expert) 15 December 2016
I think if the guarantee for loan amount does not exceed,the stamp duty of Rs.100/- is sufficient.
vivin
(Querist) 16 December 2016
Dear kavksatyanarayana, can you state that amount for which the guarantee value should not exceed? for Stamp duty of 100?
as per the Maharashtra stamp act an Indemnity bond will require a 500 hundred rupee stamp duty. can the same apply for guarantee of any value ? and what act are you referring to ?
Rajendra K Goyal
(Expert) 16 December 2016
Bank guarantee may consist of two parts i.e. Bank guarantee and counter guarantee.
Both are agreements and need to be stamped as an agreement in this case as per Maharashtra State Stamp Act.
Bank guarantee is non fund based advance, Bank charges commission which may differ from Bank to Bank.
State Bank charges 2.508 % p.a. for inland Bank Guarantee upto 5 cr. min. 684/-
vivin
(Querist) 16 December 2016
Dear Rajendra K Goyal,
MY Question is with regards to stamp duty that is applicable, not commission.
Rajendra K Goyal
(Expert) 16 December 2016
For exact amount of stamp fee, contact local lawyer or your Banker.
Please visit:
https://www.bcasonline.org/Referencer2015-16/Other%20Laws/maharashtra_stamp_act.html
vivin
(Querist) 16 December 2016
My banker has stated it will be 0.20% of the guarantee amount, but Maharashtra stamp duty says its 500 only hence i want a second opinion
P. Venu
(Expert) 16 December 2016
The query is incomplete.
vivin
(Querist) 16 December 2016
what additional info is required ?
Kumar Doab
(Expert) 16 December 2016
Mr. Goyal has been with banks and has exerted to help you.
Agreed local counsel can help you further.
Rajendra K Goyal
(Expert) 16 December 2016
It seems the amount of Bank Guarantee exceeds 10 lacs.
Please refer in the above refered link:
5 -- Agreement
iv - relating to creation of any obligation, right or interest and having monetary value
____ 0.10% if the amount agrees is up to of 10 lakhs and 0.20% if the amount exceeds 10 lakhs.
R.K Nanda
(Expert) 16 December 2016
contact local lawyer.
