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assignment of debt stamp duty karnataka

CHANGES TO THE APPLICABLE STAMP DUTY BASIS THE KARNATAKA STAMP (AMENDMENT) ACT, 2023

Published on: 19/02/2024, practice area: government & regulatory , corporate & commercial , banking & finance , dispute resolution.

assignment of debt stamp duty karnataka

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The Karnataka Stamp Act: A Comprehensive Guide for Individuals and Businesses

Introduction to Karnataka Stamp Act

The Karnataka Stamp Act is a crucial legislation that governs the levying of stamp duty on various instruments, documents, and transactions in the state of Karnataka, India. Understanding the intricacies of this act is essential for individuals and businesses alike, as it affects a wide range of legal, financial, and real estate matters. In this comprehensive guide, we will delve into the Karnataka Stamp Act, exploring its key provisions, stamp duty rates, exemptions, and procedures. So, let’s embark on this journey to unravel the mysteries of the Karnataka Stamp Act.

What is the Karnataka Stamp Act? The Karnataka Stamp Act, enacted in 1957, is a legal framework that outlines the rules and regulations related to stamp duty in the state of Karnataka. Stamp duty is a type of tax imposed on various documents to make them legally enforceable. It acts as evidence that a transaction has taken place, and the payment of stamp duty gives legal validity and authenticity to the document.

Key Provisions of the Karnataka Stamp Act 2.1 Chargeability of Stamp Duty

The Karnataka Stamp Act imposes stamp duty on a wide range of instruments, including agreements, conveyances, lease deeds, mortgage deeds, bonds, and more. The stamp duty is generally calculated as a percentage of the transaction value or the market value of the property involved.

2.2 Determining Stamp Duty Rates

The stamp duty rates vary depending on the type of instrument and the transaction involved. The Karnataka State Government periodically revises these rates. The stamp duty rates for property transactions, for instance, may vary based on factors such as property type, location, and transaction value.

Stamp Duty on Property Transactions 3.1 Sale and Purchase Deeds

When buying or selling a property in Karnataka, a sale or purchase deed must be executed. The Karnataka Stamp Act mandates that these deeds be properly stamped to make them legally valid. The stamp duty for sale and purchase deeds is typically based on the market value or the transaction value, whichever is higher.

3.2 Lease and Rental Agreements

Lease and rental agreements for commercial or residential properties also attract stamp duty. The stamp duty for such agreements is generally a percentage of the average annual rent or the total rent payable over the lease period.

3.3 Gift Deeds and Transfer of Property

Gift deeds, which involve the transfer of property without any monetary consideration, also require payment of stamp duty. The stamp duty for gift deeds is often calculated based on the market value of the property being gifted.

Stamp Duty on Loan and Mortgage Documents Loan agreements and mortgage deeds, executed for the purpose of securing a loan against property, are subject to stamp duty under the Karnataka Stamp Act. The stamp duty for these instruments is typically calculated based on the loan amount or the amount secured by the mortgage.

Exemptions and Concessions The Karnataka Stamp Act provides certain exemptions and concessions for specific transactions. For instance, stamp duty is exempted on instruments executed by or in favor of the Central or State Government. In addition, certain documents related to agricultural land, charitable institutions, and educational institutions may also be eligible for concessions or exemptions.

Stamp Duty Payment and Registration To ensure the legality and enforceability of a document, it must be properly stamped and registered as per the Karnataka Stamp Act. Stamp duty payment and document registration can be done at the jurisdictional Sub-Registrar’s Office. Non-payment or underpayment of stamp duty can lead to penalties and may render the document invalid.

Enforcement and Penalties The Karnataka Stamp Act empowers the authorities to enforce compliance with stamp duty regulations. Failure to pay the appropriate stamp duty can result in penalties, fines, or even legal repercussions. It is important to understand the stamp duty provisions and ensure compliance to avoid any future disputes or legal complications.

The Karnataka Stamp Act plays a vital role in regulating the payment of stamp duty on various instruments, documents, and transactions within the state. This comprehensive guide has shed light on the key provisions of the act, stamp duty rates, exemptions, and procedures involved in stamp duty payment and document registration. By familiarizing yourself with the Karnataka Stamp Act, you can ensure compliance with the law and make informed decisions related to property transactions, financial agreements, and other legal matters in Karnataka. Remember, seeking professional advice from legal experts is always advisable for complex transactions or specific circumstances.

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assignment of debt stamp duty karnataka

Stamp Duty on Debt Assignment

assignment of debt stamp duty karnataka

Home | Knowledge Center | Thought Papers Stamp Duty on Debt Assignment

13th Feb, 2018

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Introduction

Assignment of debt is one of the most common forms of transactions in financial markets. It essentially entails transfer of a debt from a creditor (assignor) to a third-party (assignee). One of the biggest challenges faced in debt assignment transactions in India is the significant stamp duty implication on the deed of assignment. Considering the volume of assignment transactions undertaken generally by banks and financial institutions or by asset reconstruction companies (“ ARCs ”), the stamp duty levied becomes a significant cost in such transactions. The Constitution of India (“ Constitution ”) confers upon the Parliament and each State Legislature the power to levy taxes and other duties. The subjects on which the Parliament or a State Legislature or both can legislate are specified in the Seventh Schedule of the Constitution. The Seventh Schedule is divided into 3 (three) lists:

  • Union List;
  • State List; and
  • Concurrent List.

The Parliament has the exclusive power to legislate on the subjects enumerated in the Union List. The State List enumerates the subjects on which each State Legislature can legislate and such laws operate within the territory of each State. The Parliament, as well as the State Legislatures, have the power to legislate over the subjects listed in the Concurrent List.

The entry pertaining to levy of stamp duty in the Union List is as follows: -

“91. Rates of stamp duty in respect of bills of exchange, cheques, promissory notes, bills of lading, letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts.”

The entry pertaining to levy of stamp duty in the State List is as follows: -

“63. Rates of stamp duty in respect of documents other than those specified in the provisions of List I with regard to rates of stamp duty.”

The entry pertaining to levy of stamp duty in the Concurrent List is as follows: -

“44. Stamp duties other than duties or fees collected by means of judicial stamps, but not including rates of stamp duty.” [emphasis supplied]

From the aforementioned entries, it is clear that the power to legislate on the rate of stamp duty chargeable on instruments of debt assignment (since it is not covered under Entry 91 of the Union List) is with the State Legislature. However, the power to determine whether stamp duty can be charged or not on a specific instrument is in the Concurrent List. In this regard, it may be noted that pursuant to the Enforcement of Security Interest and Recovery of Debt Laws and Miscellaneous Provisions (Amendment) Act, 2016 (“ Amendment Act ”), the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (“ SARFAESI ”) and the Indian Stamp Act were amended to provide for an exemption from stamp duty on a deed of assignment in favour of an ARC.

As mentioned above, the power to legislate on whether stamp duty is payable or not on an instrument is in the Concurrent List. Therefore, the Parliament has the power to legislate on the aforesaid subject.

Pursuant to the Amendment Act, section 5(1A) was inserted in SARFAESI which provides that any agreement or document for transfer or assignment of rights or interest in financial assets under section 5(1) of SARFAESI in favour of an ARC is not liable to payment of stamp duty.

In several States, notifications have been issued for remission and/ or reduction of stamp duties on debt assignment transactions. For instance, in Rajasthan, the stamp duty chargeable on any agreement or other document executed for transfer or assignment of rights or interests in financial assets of banks or financial institutions under section 5 of SARFAESI in favour of ARCs 1 has been remitted. Further, in Maharashtra, the stamp duty on instrument of securitization of loans or assignment of debt with underlying security has been reduced to 0.1% (zero point one percent) of the loan securitized or the debt assigned subject to a maximum of Rs. 1,00,000 (Rupees one lac) 2 .

Certain State Governments, such as those of Rajasthan and Tamil Nadu have reduced the stamp duty based on the nature of the financial asset being assigned. In Rajasthan, the stamp duty has been reduced for assignment of standard assets whilst in Tamil Nadu, the stamp duty has been reduced for assignment of non-performing assets and assignment in favour of ARCs.

This paper discusses a recent decision by the Allahabad High Court in the case of Kotak Mahindra Bank Limited v. State of UP & Ors. 3 (“ Kotak case ”), where it was held that an instrument of assignment is chargeable with stamp duty under Article 62(c) (Transfer) of Schedule 1B of the Indian Stamp Act, as applicable in Uttar Pradesh (“ UP Stamp Act ”), as opposed to Article 23 (Conveyance) of Schedule 1B of the UP Stamp Act.

The stamp duty payable in various States under Article 23 or the relevant provision for conveyance is on an ad valorem basis whereas the stamp payable under Article 62(c) or relevant provision for transfer of interest secured, inter alia, by bond or mortgage deed, is a nominal amount. For instance, in Uttar Pradesh, the stamp duty payable under Article 62(c) is Rs. 100 (Rupees one hundred).

Decision in the Kotak case

In the Kotak case, Kotak Mahindra Bank Limited (“ Kotak ”) had purchased and acquired certain loans from State Bank of India (“ Assignor ”) along with the underlying securities.

The question for consideration before the full bench of the Allahabad High Court was whether the deed executed by the applicant with the underlying securities would be chargeable with duty under Article 62(c) or Article 23 of Schedule 1B of the UP Stamp Act.

The court observed that in order to determine whether an instrument is sufficiently stamped, one must look at the instrument in its entirety to find out the true character and the dominant purpose of the instrument. In this case it was observed that the dominant purpose of the deed of assignment entered into between Kotak and the Assignor (“ Instrument ”), was to transfer/ assign the debts along with the underlying securities, thereby, entitling Kotak to demand, receive and recover the debts in its own name and right.

Article 11 of Schedule 1B of the UP Stamp Act provides that an instrument of assignment can be charged to stamp duty either as a conveyance, a transfer or a transfer of lease. The court observed that since the Instrument was not a transfer of lease, it would either be a conveyance or a transfer.

The court referred to the definition of conveyance in the UP Stamp Act, which reads as follows:

““ Conveyance ”. — “Conveyance” includes a conveyance on sale and every instrument by which property, whether movable or immovable, is transferred inter vivos and which is not otherwise specifically provided for [by Schedule I, Schedule IA or Schedule IB] [as the case may be];” [emphasis supplied]

The court held that the term conveyance denotes an instrument in writing by which some title or interest is transferred from one person to other and that the use of the words “on sale” and “is transferred” denote that the document itself should create or vest a complete title in the subject matter of the transfer, in the vendee. In this case since under the Instrument, the rights of the Assignor to recover the debts secured by the underlying securities had been transferred to Kotak, it was held that the requirement of conveyance or sale cannot be said to be satisfied.

The court further observed that debt is purely an intangible property which has to be claimed or enforced by action and not by taking physical possession thereof, in contrast to immovable and movable property. Where a transaction does not affect the transfer of any immovable or movable property, Article 23 of Schedule 1B cannot have any applicability.

The court’s view was that since debt along with underlying securities is an interest secured by bonds and/ or mortgages, transfer of such debt would be chargeable under Article 62(c).

The court further clarified that under the Instrument, merely the right under the contract to recover the debts had been transferred. Since the borrower(s) had never transferred the title in the immovable property given in security to the Assignor, the Assignor could merely transfer its rights i.e. mortgagee's rights in the property to recover the debts. It was further observed that the Assignor never had any title to the underlying securities and that it merely had the right to enforce the security interest upon default of the borrower(s) in repayment. The right transferred to Kotak was primarily the right to recover the debts, in accordance with law, by proceeding against the underlying security furnished by the bonds/ mortgage deed(s).

Therefore, the court held that the Instrument was chargeable with stamp duty under Article 62(c) of Schedule 1B of the UP Stamp Act.

Whilst coming to the conclusion that assignment of debt would not constitute a conveyance, the court referred to the definition of conveyance to state that debt is an intangible property which has to be claimed or enforced by action and not by taking physical possession thereof, in contrast to immovable and movable property.

In this regard, it may be noted that there are various judicial precedents 4 , where it has been held that an interest (including mortgage interest) in immovable property is itself immovable property.

However, even assuming assignment of debt with underlying securities over immovable property amounts to a conveyance, it

may be pertinent to refer to the definition of conveyance in the UP Stamp Act which specifically excludes a conveyance which is otherwise provided for by the Schedule to the UP Stamp Act.

Article 62(c) of the UP Stamp Act reads as follows:

“62. Transfer (whether with or without consideration) – … (c) of any interest secured by a bond, mortgagedeed or policy of insurance--”

In view of the above, transfer of any interest secured by a mortgage deed, which is covered under Article 62(c), would be excluded from the meaning of conveyance and would be chargeable to stamp duty under Article 62.

In this regard it may be pertinent to refer to the definitions of ‘bond’ and ‘mortgage deed’ under the UP Stamp Act, which is as follows:

“" Bond " includes

(a) any instrument whereby a person obliges himself to pay money to another, on condition that the obligation shall be void if a specified act is performed, or is not performed, as the case may be;

(b) any instrument attested by a witness and not payable to order or bearer, whereby a person obliges himself to pay money to another; and

(c) any instrument so attested, whereby a person obliges himself to deliver grain or other agricultural produce to another

“" Mortgage-deed ". — "mortgage-deed" includes every instrument whereby, for the purpose of securing money advanced, or to be advanced, by way of loan, or an existing or future debt, or the performance of an engagement, one person transfers, or creates, to, or in favour of another, a right over or in respect of specified property;”

In view of the above, where a debt secured by a bond or a mortgage deed is assigned under a deed of assignment, the stamp duty payable on such deed of assignment will be under Article 62(c) of the UP Stamp Act or corresponding provisions of the Stamp Act of other States.

However, in cases of unsecured loans or loans secured by an equitable mortgage (where there is no mortgage deed), the deed of assignment would attract ad valorem stamp duty chargeable on conveyance, since the same will not get covered under Article 62(c) or similar provisions in other states.

The market practice until now has been to stamp the deed of assignment of debt under the relevant article for Conveyance in the applicable Stamp Act. In fact, in States such as Maharashtra, the State Government has issued notifications for reduction of stamp duty on a deed of assignment under the article for Conveyance.

The judgment passed by the Allahabad High Court in the Kotak case may prove to be a welcome step in reducing the incidence of stamp duty on debt assignment transactions. However, it would need to be seen whether in other States a similar view is taken by stamp duty authorities.

This update has been prepared by Aastha (Partner), Debopam Dutta (Managing Associate) and Abhay Jain (Associate).

1 Notification No. F4(3)FD/Tax/2017-110 dated March 8, 2017 issued by Finance Department (Tax Division) Government Of Rajasthan.

2 Notification No.Mudrank-2002/875/C.R.173-M-1 dated May 6, 2002 issued by Revenue & Forests Department, Government of Maharashtra.

3 Reference Against MISC. Acts. No. 1 of 2016, order dated February 9, 2018.

4 Bank of Upper India Ltd. (in liquidation) v. Fanny Skinner and Ors., AIR 1929 All 161. See also Prahlad Dalsukhrai and Ors. v. Maganlal Muljibhai Tewar, AIR 1952 Bom 454 and Harihar Pandey v. Vindhayachal Rai and Ors., AIR 1949 Pat 170.

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Power Of Attorney Executed Along With Debt Assignment Deed Under SARFAESI Act Not Separately Chargeable Under Bombay Stamp Act : Supreme Court

Manu sebastian.

27 April 2022 3:30 AM GMT

Power Of Attorney Executed Along With Debt Assignment Deed Under SARFAESI Act Not Separately Chargeable Under Bombay Stamp Act : Supreme Court

The Supreme Court on Tuesday set aside a judgment delivered by a Full Bench of the Gujarat High Court which had held that stamp duty has to be independently paid for a Power of Attorney executed along with a deed assigning debt, even if stamp duty has been paid on the assignment deed.In this case, the Oriental Bank of Commerce had assigned a debt to an Asset Reconstruction Company(ARC)...

The Supreme Court on Tuesday set aside a judgment delivered by a Full Bench of the Gujarat High Court which had held that stamp duty has to be independently paid for a Power of Attorney executed along with a deed assigning debt, even if stamp duty has been paid on the assignment deed.

In this case, the Oriental Bank of Commerce had assigned a debt to an Asset Reconstruction Company(ARC) under Section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002(SARFAESI Act). Along with the assignment deed, the Bank had executed an irrevocable Power of Attorney(PoA) in favour of the company, empowering the assignee, as the agent of the Bank, to sell any immovable property.

Though the assignment deed was registered and stamp duty was paid on it, an issue arose as to whether the PoA should be independently charged under the Bombay Stamp Act 1958. On a reference made, a Full Bench of the Gujarat High Court held that separate stamp duty has to be paid on the PoA as well. To reach this conclusion, the Full Bench relied on Article 45(f) of Schedule I to the Bombay Stamp Act Act 1958 which makes a PoA given for a consideration and containing an authority to sell any immovable property chargeable to stamp duty. The ARC approached the Supreme Court against the Full Bench verdict.

The Supreme Court held that the reasoning of the High Court cannot be accepted. It noted that for invoking Article 45(f), two conditions have to be satisfied : (i) the PoA should have been given for a consideration;and (ii) an authorization to sell any immovable property should flow out of the instrument.

In the case on hand, the consideration paid by the ARC to the Bank, was for the purpose of acquisition of the financial assets, in respect of a particular borrower.

Also, the authorization to sell immovable property did not flow out of the PoA but out of the provisions of the SARFAESI Act. In this regard, a bench comprising Justices Hemant Gupta and V Ramasubramanian observed :

"The High Court overlooked the fact that there was no independent instrument of PoA and that in any case, the power of sale of a secured asset flowed out of the provisions of the Securitisation Act, 2002 and not out of an independent instrument of PoA. Section 2(zd) of the Securitisation Act, 2002 defines a 'secured creditor' to mean and include an Asset Reconstruction Company. The appellant has acquired the financial assets of OBC in terms of Section 5(1)(b) of the Securitisation Act, 2002. Therefore, under sub­section (2) of Section 5 of the Securitisation Act, 2002, the appellant shall be deemed to be the lender and all the rights of the Bank vested in them".

The Court also noted that  under Amendment Act 44 of 2016, sub­section (1A) was inserted in Section 5 of the Securitisation Act,exempting from stamp duty, any document executed by any bank in favour of an ARC. Though the said amendment was not applicable to this case , as the deed of assignment was executed long prior to 2016, the Court said that it has taken note of the amendment to show how far the Parliament has gone.

Stamp duty on the assignment deed already paid

"The deed of assignment has already been charged to duty under Article 20(a) which deals with "conveyance". In fact Article 45(f) also requires a PoA covered by the said provision to be chargeable to stamp duty under Article 20", the Court noted.

The Court further noted that the Gujarat Government had ordered the reduction of stamp duty payable on an instrument of securitization of loans or assignment of debt with underlying securities. The ARC has paid the duty for the instrument charged as a conveyance under Article 20(a).

"In view of the Notification dated 01.04.2003 issued in exercise of the power to reduce, remit or compound the duty, conferred by Section 9(a) of the Act, the amount of duty chargeable in terms of Article 20(a) was capped at Rs. 1,00,000/­. In addition to the said amount of Rs.1,00,000/­, the appellant was asked to pay an additional duty of Rs.40,000/­ under Section 3­A. The appellant has thus paid a total amount of Rs.1,40,000/­ with the instrument having been charged as a conveyance under Article 20(a)", the Court noted.

A single instrument charged under a provison cannot be split and charged under a differet provision

The Court further observed :

"Once a single instrument has been charged under a correct charging provision of the Statute, namely Article 20(a), the Revenue cannot split the instrument into two, because of the reduction in the stamp duty facilitated by a notification of the Government issued under Section 9(a). In other words after having accepted the deed of assignment as an instrument chargeable to duty as a conveyance under Article 20(a) and after having collected the duty payable on the same, it is not open to the respondent to subject the same instrument to duty once again under Article 45(f), merely because the appellant had the benefit of the notifications under Section 9(a). Since the impugned order of the High Court did not address these issues and went solely on the interpretation of Article 45(f), the same is unsustainable".

Accordingly, the appeal was allowed and the demand of stamp duty on PoA was set aside.

Senior Advocate Mr. V Chitambaresh appeared for the appellant. Advocate Ms. Archana Pathak Dave appeared for the State of Gujarat.

Case Title : Asset Reconstruction Co (India) Ltd versus Chief Controlling Revenue Authority

Citation : 2022 LiveLaw (SC) 415

Bombay Stamp Act 1958 - Stamp duty not separately payable on Power of Attorney executed along with deed assigning debt under the SARFAESI Act.

Bombay Stampt Act 1958 - Once a single instrument has been charged under a correct charging provision of the Statute, namely Article 20(a), the Revenue cannot split the instrument into two, because of the reduction in the stamp duty facilitated by a notification of the Government issued under Section 9(a). In other words after having accepted the deed of assignment as an instrument chargeable to duty as a conveyance under Article 20(a) and after having collected the duty payable on the same, it is not open to the respondent to subject the same instrument to duty once again under Article 45(f), merely because the appellant had the benefit of the notifications under Section 9(a)- Paragraph 16

SARFAESI Act 2002 - The High Court overlooked the fact that there was no independent instrument of PoA and that in any case, the power of sale of a secured asset flowed out of the provisions of the Securitisation Act, 2002 and not out of an independent instrument of PoA. Section 2(zd) of the Securitisation Act, 2002 defines a 'secured creditor' to mean and include an Asset Reconstruction Company. The appellant has acquired the financial assets of OBC in terms of Section 5(1)(b) of the Securitisation Act, 2002. Therefore, under sub­section (2) of Section 5 of the Securitisation Act, 2002, the appellant shall be deemed to be the lender and all the rights of the Bank vested in them (Para 9)

Click here to read/download the judgment

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  1. Govt approves debt relief scheme

  2. ZOMBIE DEBT ASSIGNMENT AND ASSUMPTION AGREEMENT FORMS FOR CPN!

  3. TO GET LIFE CERTIFICATE OF PENSIONER IS DUTY OF BANKER-KARNATAKA HIGH COURT IMPOSES PENALTY ON BANK

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  1. PDF The Karnataka Stamp Act, 1957

    Description of Instrument Proper Stamp Duty 2[1. Acknowledgement of : (i) a debt written or signed by or on behalf of, a debtor in order to supply evidence of such debt in any book (other than a Banker's ... Description of Instrument Proper Stamp Duty THE KARNATAKA STAMP ACT, 1957 Corporation, registered as a company under the Companies Act ...

  2. Changes to the applicable stamp duty basis the karnataka stamp

    The Stamp duty on affidavits has seen a 5x increase from INR 20 to INR 100 (Article 4), whereas on counterparts the same has been increased from INR 500 to INR 1,000 (Article 22 (b)). Additionally ...

  3. Karnataka Stamp (Amendment) Act, 2023

    The Karnataka Stamp (Amendment) Act, 2023, outlines various amendments, including changes to stamp duty amounts, percentages, and specific amounts applicable to various types of instruments and transactions. +91 75399 20222 ; ... such as loan or debt amounts, bank guarantees, and share-related transactions, along with modifications to the ...

  4. PDF The Karnataka Stamp (Amendment) Act, 2023

    the Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957) to enhance the rate of Stamp Duty in certain cases and to make a separate provision regarding levy of Stamp Duty on Bank Guarantee. Hence, the Bill. [L.A. Bill No.22 of 2023, File No. SAMVYASHAE 39 SHASANA 2023] [Entry 63 of List II of the Seventh Schedule to the Constitution of India.]

  5. Changes to The Applicable Stamp Duty Basis the Karnataka Stamp

    In response to longstanding stagnation, the Karnataka state government, on February 03, 2024, notified the Karnataka Stamp (Amendment) Act 2023, revamping stamp duty rates for more than 50 legal instruments, including without limitation, power of attorney, deeds, memorandums, title agreements, conveyance, counterparts, arbitration awards, and affidavits.

  6. PDF 1957: KAR. ACT 34] Stamp

    The Bill makes provision for the levy of stamp duty on instruments at the rates in force the Madras Area. (Obtained from Notification L. A. No. 5848 dated 20-6-1957) II Amending Act 8 of 1958.- The Government of India have decided that with effect from 1st April 1958, the rates of Stamp Duty should be expressed in decimal coinage.

  7. PDF Table of Contents Paragraph Subject Page No Chapter I Introduction 1

    The Indian Stamp Act, 1899 and the Karnataka Stamp Act 1957, impose duty on various instruments specified in the Schedule thereto at the rates prescribed therein. Such duties are paid by the persons, who are required to pay as per Section 30 of Karnataka Stamp Act, 1957, by either using impressed ...

  8. PDF Karnataka Act No. 11 of 2022 the Karnataka Stamp (Amendment) Act, 2022

    In the Karnataka Stamp Act, 1957, (Karnataka Act 34 of 1957) (hereinafter referred to as the Principal Act), in section 2, in sub-section (1), for clause (r), the following shall be substituted, namely:- "(r) "Stamp" means impressed stamp or digital e-stamp which is generated electronically and "Stamp paper" means a paper bearing the ...

  9. Stamp Duty and Registration Fees

    Stamp Duty and Registration Fees. Provided that if the original instrument is a conveyance on sale, then the stamp duty is as per article 20 (1) Rs.100 or 1% on Market value if it is cancellation of conveyance. 5% on Consideration shown in the document + Surcharge + Additional duty. 1% on Market value or consideration whichever is higher ...

  10. Stamp Duty on Assignment of Receivables

    Stamp Duty on Assignment of Receivables. The table below provides the rate of stamp duty applicable on assignment of receivables in major states across India: 0.1% of the loan securitized or debt assigned with underlying securities subject to maximum limit of Rs.1 Lakh. [1] 8.25 percent. 0.1% of the loan securitized or debt assigned with ...

  11. The Karnataka Stamp Act: A Comprehensive Guide for Individuals and

    The Karnataka Stamp Act, enacted in 1957, is a legal framework that outlines the rules and regulations related to stamp duty in the state of Karnataka. Stamp duty is a type of tax imposed on various documents to make them legally enforceable. It acts as evidence that a transaction has taken place, and the payment of stamp duty gives legal ...

  12. Stamp Duty on Debt Assignment

    Further, in Maharashtra, the stamp duty on instrument of securitization of loans or assignment of debt with underlying security has been reduced to 0.1% (zero point one percent) of the loan securitized or the debt assigned subject to a maximum of Rs. 1,00,000 (Rupees one lac) 2. Certain State Governments, such as those of Rajasthan and Tamil ...

  13. PDF The Karnataka Stamp Act, 1957

    - Under article 16 of the Schedule appended to the Mysore Stamp Act, 1957, the stamp duty payable on a share certificate is 30 naye paise. Section 11 of the Mysore Stamp Act, 1957, does not permit the use of adhesive stamps for payment of the stamp duty exceeding 15 naye paise. Thousands of share certificates have to be therefore submitted by

  14. Reserve Bank of India

    The Government of Karnataka, Department of Stamps & Registration have specified that that with effect from 1 st April 1999, 'Deeds relating to assignment of receivables in the process of securitisation will be charged to a reduced duty of 0.1% subject to a maximum of Rs. One Lakh.'. (ii) Bombay Stamp Act, 1958.

  15. PDF Karnataka Act No. 17 of 2017 the Karnataka Stamp (Amendment) Act, 2017

    Short title and commencement.-. (1) This Act may be called the Karnataka Stamp (Amendment) Act, 2017. It shall come into force with effect from the first day of April, 2017. 2. Amendment of section 30.-. In the Karnataka Stamp Act, 1957 (Karnataka Act 34 of 1957) (hereinafter referred to as the Principal Act), in section 30, after clause (f ...

  16. PDF Acts and R ules: Stamp Act THE KARNATAKA STAMP ACT, 1957

    THE KARNATAKA STAMP ACT, 1957 1[Schedule Stamp Duty on Instruments (Updated till 20th April, 2017) Sl No. Article No. Sub - Article Sub - sub Article Description of Instrument Proper Stamp Duty 1 2[1. Acknowledgement of : (i) a debt written or signed by or on behalf of, a debtor in order to supply evidence of such debt in any

  17. PDF Stamp Duty and Latest RBI Guidelines

    Ceiling on Stamp duties Sr. No State Stamp duty Payable Maximum ceiling limit (in Rs.) 9 West Bengal 0.1% subject to maximum limit with or without security 1,00,000 10 Karnataka 0.1% of the securitised debt or assignment of receivables with underlying security subject to maximum limit. 1,00,000 11 Tamil Nadu 0.1% of the Market value of the

  18. Payment of Stamp Duty

    The following stamp duty and registration fee shall be paid if partition of property is affected among joint family members. A. If the property is non agricultural property. (1) If the property is situated in Corporation of municipal Areas. Stamp duty Rs.1000 for every share. Registration fee Rs.500 for each share.

  19. Stamp Duty on Assignment of Debt States & UTs wise in India

    Tripura. (a) The Indian Stamp Act, 1899. Uttar Pradesh. 0.1% subject to a maximum of Rs. 1 Lakh. (1% extra duty on the account of each of the Local Laws is levied for immovable properties, if the transfer is covered by the said Act) (a) The Indian Stamp Act, 1899. (b) The Indian Stamp (Uttar Pradesh Amendment) Act, 1997.

  20. India Code: KARNATAKA STAMP ACT, 1957

    The KARNATAKA STAMP ACT, 1957. Long Title: An Act to consolidate and amend the laws relating to Stamps. Department: Revenue Department. Abstract: noo. Enforcement Date: 01-06-1958.

  21. PDF The Karnataka Stamp Act,1957

    The Bill makes provision for the levy of stamp duty on instruments at the rates in force the Madras Area. (Obtained from Notification L. A. No. 5848 dated 20-6-1957) II Amending Act 8 of 1958.- The Government of India have decided that with effect from 1st April 1958, the rates of Stamp Duty should be expressed in decimal coinage.

  22. PDF Sections: CHAPTER I

    The Bill makes provision for the levy of stamp duty on instruments at the rates in force the Madras Area. (Obtained from Notification L. A. No. 5848 dated 20-6-1957) II Amending Act 8 of 1958.- The Government of India have decided that with effect from 1st April 1958, the rates of Stamp Duty should be expressed in decimal coinage.

  23. PDF Statement of Objects and Reasons Karnataka Act No. 15 of 2012 the

    THE KARNATAKA STAMP (AMENDMENT) ACT, 2012. (Received the assent of the Governor on the thirty-first day of March, 2012) An Act further to amend the Karnataka Stamp Act, 1957. Short title and commencement.-. (1) This Act may be called the Karnataka Stamp (Amendment) Act, 2012. It shall come into force with effect from the first day of April 2012.

  24. Power Of Attorney Executed Along With Debt Assignment Deed ...

    The Court further noted that the Gujarat Government had ordered the reduction of stamp duty payable on an instrument of securitization of loans or assignment of debt with underlying securities.