Legal Question in Banking Law in India

we have material for Rs 1600000.00 to X company, Now they want a bank guarantee for 10% amount i.e. Rs 160000.00 which cover the warranty period of 2years.

now I want know, how much stamp duty we have to pay for issuing this bank guarantee.


Asked on 4/08/15, 11:07 pm

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

09.04.2015

Dear Sir / Madam,

Stamping of Bank Guarantee is dependent on the nature of the Bank Guarantee and the provisions of The Indian Stamp Act,1899 as amended and in force as on the date of the Bank Guarantee. Since Stamp Duty is a State subject, many States have enacted their own Stamp Act on the basis of the Indian Stamp Act, 1899 like the Maharashtra Stamp Act, 1958 etc.

http://registryoffice.up.nic.in/Standard Forms/SCHEDULE I-B.pdf

Amount of Stamp Duty payable on Bank Guarantee ranges from Rs. 10/- to Rs. 100/- depending on the State in which the Bank Guarantee has been made.

Regards,

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Answered on 4/09/15, 3:47 am


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