News & Developments
My Column by Vinod Kothari:
Stamp duty on assignment of receivables-
Some people seem to have taken the view that with the ordinance provides for a process of legal vesting of loans into the securitisation company and therefore, the stamp duty implications of transfer of actionable claims are dispensed with.
Most respectfully, this is not a correct view. True, there is a vesting of the loans into the securitisation company/ ARC, but such vestnig is only the outcome of the agreement, which is true for any conveyance or sale. The only difference between sec. 5 of the Ordinance and sec. 130 of the TP Act is that a written agreement is not required under the former section. But if the parties choose to have a written agreement, the same is certainly a conveyance, and would come for stamping.