Business Standard

Maharashtra to lower stamp duty on loan deals

Related News

The has decided to reduce stamp duty on all loan agreements to 0.1 per cent from 0.25 per cent it had prescribed earlier.
 
To corporates' relief, it is also reducing the ceiling on stamp duty on loan agreements to Rs 5 lakh from Rs 10 lakh.
 
The decision follows representations from several quarters, including Indian Banks' Association (IBA), arguing that 0.25 stamp duty on loan agreement is exorbitant.
 
Stamp duty is a type of tax paid for a transaction performed by way of a document or instrument under the provisions of state stamp Acts and the Indian Stamp Act, 1899. Following the reduction, all corporate and retail borrowers will have to pay Rs 100 as stamp duty per Rs 1-lakh of loans availed.
 
Maharashtra accounts for nearly 30 per cent of all loans disbursed in the country. The total credit offtake in the country in 2005-06 is expected to be around Rs 3,00,000 crore. Additional revenue generation from this levy for the state government will be about Rs 100 crore a year.
 
The state government has also agreed to forgo stamp duty on agreements relating to sale or purchase of government securities. It, however, declined to sacrifice stamp duty revenue on sale and purchase of corporate paper, banking sources said.
 
IBA, have been advised to seek the opinion of a committee set up by the government for making Mumbai a regional financial centre.

 
 

Read more on:   
|
|
|
|
|

Read More

India Inc takes foreign route to raise funds by issuing bonds

Raises $4 bn so far in 2013; companies likely to mop up another $10 bn by year-end

Quick Links

More news from Finance Rss icon

SBI MF launches inflation-indexed bond

SBI Mutual Fund on Thursday said it had launched an inflation-indexed bond fund (IIBF) offering, which is aimed at investors with a low to ...

Long term motor policies for commercial vehicles is sometime away

It is estimated that the combined ratio for motor insurance might touch 200% by the end of March 31, 2015

The going gets tough for insurance claim investigators

Many operating in insurance claims investigation space are facing hardships during probing suspicious claims

Back to Top