• Stamp duty For Converted company

We are converted Partnership to private limited company
Since there is a bank involved and we will also be taking a loan from a bank to fund part of the transaction, can i liable to pay stamp duty for hypothecation
Asked 5 years ago in Business Law

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14 Answers

yes in case of any mortgage and there is any stamp duty payable as per the state government rules definitely you have to pay the stamp duty and hypothecation and you will table to know the amount of stamp duty applicable in this case from the bank itself is done your financial dealings with them

Vimlesh Prasad Mishra
Advocate, Lucknow
6851 Answers
23 Consultations

Not stamp duty for hypothication with the Bank but Registration Charges are applicable as per the rule and volume of loan by the Bank additionally as per The Registration Act.

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

You will have to pay stamp duty for hypothecation 

Ajay Sethi
Advocate, Mumbai
99899 Answers
8153 Consultations

1. There is no stamp duty on hypothecation.

2. You don't need a legal section. Unless there is a specific provision of law which provides for a liability, there is no liability.

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

Hypothication does involve stamp duty variable with the value of the goods. 

In other words a Rs 100 stamp paper is enough. 

Read the Registration Act as well as Transfer of Property Act

Otherwise depend on our advices. 

Devajyoti Barman
Advocate, Kolkata
23658 Answers
538 Consultations

There is no notification about payment of stamp duty for loan/mortgage/hypothication agreement from bank.

Stamp duty Act does not show any section and requires  payment of stamp duty on loan/mortgage/hypothication payments advancement agreements. Hence No provisions No section no quote of section. 

Section 18 (d)  of Registration Act 1908 described registration of documents under the Act along with SARFASI under section 2 (n) Act 2002 registration of hypothication is optional. 

Section 2 (n) of SARFASI Act 2002 defined HYPOTHICATION. 

Stamp duty Act has no provisions for payment of stamp duty  for the loan/hypothication/mortgage processing and on loan agreement. 

Registration Act does prescribed the procedure for payments of Registration charges for the loan agreement before the office of  sub- Registrar and Registrar of Assurance .


Registration of Hypothication Agreement between parties under section 18 (d) is optional not compulsory as per the provisions envisaged and expressed therein.

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

- As per the Section 4 of the Stamp Act , in the case of any sale, mortgage or settlement, several instruments are employed for completing the transaction, the principal instrument only shall be chargeable with the duty.

- Further,when the pledge or hypothecation of movable property is to secure the repayment of money advanced or to be advanced by way of loan or an existing or future debt, then the Stamp duty is Re. 1 for every Rs. 1,000 or part , subject to minimum of Rs. 100 and maximum Rs. 5,00,000.

- You can get the details under section 4 of the Stamp Act. regarding the hypothecation.

Mohammed Shahzad
Advocate, Delhi
15836 Answers
242 Consultations

Stamp duty on loan agreement is 0.25% of Loan amount which is optional and agreement can execute on stamp paper which is not more than 500rs.

But bank may insist to pay full optional stamp duty. Since it is optional, you can refuse to pay.

 

Yogendra Singh Rajawat
Advocate, Jaipur
23085 Answers
31 Consultations

Yes it's applicable for hypothecation in Maharashtra since 2009 on 0.2% of the amount secured

Prashant Nayak
Advocate, Mumbai
34602 Answers
249 Consultations

No stamp duty is required .

Swarupananda Neogi
Advocate, Kolkata
2993 Answers
6 Consultations

The applicable stamp duty for registered hyphothecation deed   would apply.

There wont be any stamp duty payable if the hyphothecation deed is not registered.

 

T Kalaiselvan
Advocate, Vellore
90102 Answers
2503 Consultations

The bank would register the  MOD.

MOD means memorandum of (deposit of title) deeds.

In that all the documents will be indexed and secured.

Therefore only the MOD will be registered.

T Kalaiselvan
Advocate, Vellore
90102 Answers
2503 Consultations

yes you have to pay stamp duty for hypothecation. 

Mohammed Mujeeb
Advocate, Hyderabad
19352 Answers
32 Consultations

Yes you are liable to pay stamp duty for hypothecation.

 

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

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