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Quantum of stamp duty on bonds?

kianganz 12 Nov 2009, 18:30

“What would be the quantum of Stamp Duty on an instrument for securing redeemable non-convertible taxable bonds issued/privately placed by a company, through creation of mortgage over the company’s immoveable property?”

A query from a reader.

Can anyone help please?

(disclaimer: any advice given should not be taken as legal advice and you should always consult with your own lawyer before you act on anything you read here)

3 Replies

AnonymousLLB 13 Nov 2009, 21:02

Sr. No. Description of Instrument Proper Stamp Duty

1. Acknowledgement Rs.2/- upto Rs.5000/-

Exceeding 5000/- Rs.2/- for every 1000/- or part there of.

2. Administration Bond The same duty as Bond No.12 upto Rs.1000/- and in any other case Rs.100/-.

3. Adoption Deed Rs.500/-

4. Affidavit Rs.20/-

5. Agreement relating to Sale of Immoveable property. i) Same duty as conveyance on the market value of the property when the possession of the property is delivered or agreed to be delivered.

ii) Rs.10/- to Rs.200/- depending upon the value of the property where the possession of the property is not delivered.

6. Agreement relating to DTD 0.5% on the loan amount

7. Appointment in execution of power Rs.1000/-

8. Appraisement or Valuation The same duty as Bond No.12 upto Rs.1000/- and in any other case Rs.100/-.

9. Apprenticeship Rs.50/-

10. Article of Association Rs.500/- for every Rs.10 lakhs or part there of.

11. Award Same duty as bond on the MV of the property which is the subject matter of Award.

12. Bond Rs.5/- for every Rs. One Hundred upto Rs.1000/-.

Rs.25/- for every Rs .Five Hundred or part there of in excess of Rs.1000/-

13. Bottomry Bond Same duty as Bond No.12.

14. Cancellation of Instruments The same duty as on the original instruments.

15. Certificate of sale Rs.1/- for Rs.10/- Purchase Money.

Rs.1.50/- for the Purchase Money exceeding Rs.10/- but below Rs.25/-.

Duty on conveyance in any other case.

16. Certificate or other documents, evidencing the right or title of the holder there of, or any other person, either to any share, script or stock in or of any incorporated company or other body corporate or to become proprietor of share, script or stock in of any such company or body. Rs.1/- for every Rs.1000/- or part there of the value of the share script or stock.

17. Certificate of Enrolment Rs.500/-

18. Charter Party Rs.50/-

18(A) Clearance List The sum of duties chargeable under Article 5(b),(e),(c) and Article 37(e), (b) or (c) as the case may be.

19. Composition Deed Rs.100/-

20. Conveyance 7.5% of the Market value

21. Copy of a extract Rs.5/- to Rs.10/-

22. Counter part or Duplicate Rs.4.50 paisa to Rs.50/-

23. Customs Bond Same duty as bond upto Rs.1000/- in any other case Rs.100/-.

24. Delivery order in respect of Goods Rs.1/- where the value of Goods does not exceed Rs.1000/-

Rs.5/- for every Rs.1000/- where the value of the Goods exceeds Rs.1000/-.

25. Divorce Rs.100/-

26. Exchange of Property Same duty as conveyance No.20 for market value equal to the market value of the property of greatest value which is subject matter of exchange.

27. Further Charge Same duty as conveyance No.20 for market value equal to the amount of the further charge secure for such instruments

28. Gift Same duty as conveyance No.20 for market value equal to the market value of the property which is the subject matter of gift.

Rs.1000/- Where the donee is a member of the family of the donor.

29. Indemnity Bond Same duty as a Security Bond No.47.

30. Lease of Immovable Property The duty chargeable varies depending upon the amount of rent, lease period and lease granted for amount advanced etc. Kindly go through the Article for details.

31. Letter of Allotment Rs.1/-

32. Letter of License Rs.100/-

32 (A) License of Immovable and Movable Property The duty chargeable varies depending upon the amount of rent, lease, license period and license granted for the lumpsum amount advanced etc. Kindly go through the Article for details.

33. Memorandum of Association of a company Rs.1000/- if accompanied by the Articles of Associations u/s 26 of companies Act 1956.

The same duty as under Article No.10, according to the share capital of the company if not accompanied as above.

34. Mortgage Deed Same duty as conveyance No.20. when possession is given.

Rs.50 paisa for every Rs.100/- or part there of when possession is not given.

35. Mortgage of a Crop The duty chargeable varies depending upon the amount secured and the period of re-payment etc. Kindly go through the Article for details.

36. Notarial Act Rs.10/-

37. Note or Memorandum Rs.1/- for every Rs.10,000/-

38. Note of Protest by the Master of a ship Rs.2/-

39. Partition Rs.250/- to Rs.500/- depending upon the nature of the property.

40(A) Partnership : Rs.100/- where capital does not exceed Rs.5000/-

Rs.1000/- in any other case.

40(B) Reconstitution Same duty as conveyance No.20 on the MV of the property of the Immovable property remaining with the firm.

Rs.500/- in any other case.

40 (C) Dissolution a) The same duty as conveyance for a market value equal to the market value of the property distributed or allotted or given to partner or partners under the instrument of dissolution, in addition to the duty which would have been chargeable on such dissolution if such property has not been distributed or allotted or given.

b) In any other case Rs.500/-

41. Power of Attorney When given to a promoter or developer by a whatever name called for construction, development on, or sale or transfer of any immoveable property situated in Karnataka. Rs.10,000/- to Rs.1.50 lakhs based on the market value of the property.

When given to a person other than Father, Mother, Wife or Husband, Sons, Daughters, Brothers, Sisters in relation to the executants authorizing such person to sell immoveable property situated in Karnataka. 7.5% on the market value of the property.

In any other case Rs.100/-

42. Protest of Bill Rs.10/-

43. Protest by the Master of a Ship Rs.5/-

44. Re-conveyance of Mortgage Same duty as conveyance No.20 on the MV equal to the amount of such consideration not exceeding Rs.1000/-.

Rs.100/- in any other case.

45. Release Release is not between the family members, where the release is not for consideration 2.5% on the MV of the subject matter of release.

Release is not between the family members, where the release is for consideration 50% of the rate applicable to conveyance on the MV of the property which is the subject matter of release.

Where the release is between the family members Rs.1000/-.

Release of mortgage rights Rs.100/-

46. Respodentia Bond The same duty as Bond No.12, for the amount of the loan secured.

47. Security Bond or Mortgage Duty a) Same duty as Bond No.12 for the amount secured does not exceed Rs.1000/-

b) Rs.100/- in any other case.

i hope this list can be helpful

kianganz 14 Nov 2009, 22:10

Thanks for your detailed response Anuroop, will forward to the reader!

AnonymousLLB 13 Aug 2010, 16:00

Thank u somuch..ur note was very helpful indeed!!