Debenture Sign with Stamp

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Stamp Duty on Debentures The Amendment reduces the rate on issue of debentures payable under Article 27 of the schedule to the Act from 0.05% of the face value[4] to 0.005% and introduces a rate of 0.0001% on transfer and re-issuance of debentures.
The loan agreement is executed on 500 Rs. stamp depends on state to state. ... 1, No there is no need for separate payment towards stamp duty of the loan agreement. 2. However the established practice is to make that loan agreement executed on a Rs.50/- stamp paper or by affixing a revenue stamp.
Stamp duty is a tax that is levied on documents. ... A physical stamp (a revenue stamp) had to be attached to or impressed upon the document to denote that stamp duty had been paid before the document was legally effective. More modern versions of the tax no longer require an actual stamp.
The Instrument on which ad valorem Stamp Duty is Paid conveyance upon execution and nominal stamp duty be imposed on the instrument of conveyance. This is in contrast to the current position where ad valorem duty is paid on the instrument of conveyance and the agreement is charged with nominal stamp duty.
Franking charges, on the other hand, range from 0.1%-0.2% of the home loan amount or 0.1% of the property value, capped at Rs.20,000 on the sale deed of the property. It also varies across states. For example, if you are taking a home loan of Rs.1.5 crore in Karnataka, your franking charges will be 0.2%.
There is no proper instrument for transfer of debenture. There are no separate provisions contained in Table A of Companies Act, 1956. Section 108 provides proper instrument of transfer to be executed for effecting transfer of shares or debentures. However Form 7B contains only to transfer shares only not debentures.
Issue of debentures is governed by the Companies Act, 2013, SEBI regulations and RBI regulations. The Companies Act, 2013 allows both private and public companies to issue any type of debentures as long as they do not carry any voting rights.
The main risk that fixed-rate debentures and unsecured notes holders are exposed to is the opportunity cost that a better rate of return may be available elsewhere if interest rates were to increase. The credit risk is the risk that the investor's interest and/or capital are not repaid by the borrower.
Debenture bonds are liabilities of the company because they represent debts that will have to be repaid in the future. Liabilities are shown on the balance sheet as either current liabilities or long-term liabilities.
Strictly speaking, a U.S. Treasury bond and a U.S. Treasury bill are both debentures. They are not secured by collateral, yet they are considered risk-free. Similarly, debentures are the most common form of long-term debt instruments issued by corporations.
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