Stamp Duty - Mortgage & Hypothecation

Others 2219 views 2 replies

Company ABC Pvt. Ltd. is having its registered office in Maharashtra and having presence in multiple states having different GSTIN of each state. While availing bank loan, company has to pay stamp duty. the property to be mortgage is situated in Maharashtra. However with respect to Hypothecation which is collateral to the primary security - have presence in other states as well. Due to different stamp duty in different states with respect to Hypothecation. Say For e.g. it is specific % of stamp duty in the state of Maharashtra but in some states it is flat 500 rupees only.
1. Whether a company can execute Mortgage deed in one state and hypothecation deed in another?

2. Is there any specific mention in any Stamp Act, that stamp duty on Hypothecation has to be paid only in the state where company's registered office is there?

 

Thank you

Replies (2)

Stamp duty is usually paid in the state where the property is registered/mortgated (not related to company regd. office location).

 

Agreed - Mortgage will be in the state where it is located...
But what about Hypothecation charge - whether one has to pay additional for that? One can execute hypothecation deed in other state where company has presence and pay stamp duty of  say 500 Rs. which is ok as per that state Law. 

(Normally Bank executes two deed one mortgage and one Hypothecation)


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