What is the stamp duty payable on transfer of assets to ARC? Are any stamp duty concessions available for such transfer?
As the process involves transfer/assignment of mortgage debts and the same will attract stamp duty as “Conveyance” on ad valorem under the corresponding stamp laws of the states where the mortgaged asset is located. The duty in various states is very high ranging from 4% to 10%. In few states concessions are available as the same is kept under a special article as “assignment of debt with or without underlying securities” and is capped at maximum of Rs.1.00 lakh. These states are Maharashtra and Gujarat. Arcil has approached all other states for obtaining similar concessions.
