Arati S. Dudhawale (Company Secretary) 08 November 2013
Heollo,
Fact :
A company with consortium banking facility with SBI, SBH, ING vysaya bank, and now ING vysya is closed and replaced by HDFC who is a new entrant.There is no change in the limits and exposure and the company is renewing the consortium documents.
Question:1) Is stamp duty applicable?
2) if yes how much , if there is no change in the earlier limits.?
Do reply me.A bit urgent
Kishor Keshav kini (senior consultant ) 29 January 2014
ans :- the iba had prescribed a set of documents in case of substitution of member bank in consortium. the stamp duty is state subject and requires to see the state law where it is executed.. that any addition of bank by replcement of existing may be novation in terms of documents hence see the recital for inclusion of new assignee bank . that generally the lead ender sanctions the facility for the unit and share is allotted to members the understanding can be gained see my article on consortium document question of stamp duty in LCI itself or search it in google
kishor kini
advocate
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