guarantee instruments Maharashtra Archives | SCC Times https://www.scconline.com/blog/post/tag/guarantee-instruments-maharashtra/ Bringing you the Best Analytical Legal News Tue, 28 Jul 2026 10:11:21 +0000 en-US hourly 1 https://wordpress.org/?v=7.1.3 https://www.scconline.com/blog/wp-content/uploads/2020/07/cropped-SCC-Online_Telegram_HR-32x32.jpg guarantee instruments Maharashtra Archives | SCC Times https://www.scconline.com/blog/post/tag/guarantee-instruments-maharashtra/ 32 32 Maharashtra Stamp Amendment Revises Stamp Duty Structure for Guarantee Instruments https://www.scconline.com/blog/post/2026/07/28/maharashtra-stamp-fourth-amendment-act-2026-explained/ https://www.scconline.com/blog/post/2026/07/28/maharashtra-stamp-fourth-amendment-act-2026-explained/#respond Tue, 28 Jul 2026 10:30:34 +0000 https://www.scconline.com/blog/?p=391654 Maharashtra Stamp (Fourth Amendment) Act, 2026 prescribes stamp duty on financial and bank guarantees based on the guaranteed amount and provides concessional rates for public works and procurement-related guarantees.

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On 22 July 2026, the Maharashtra Government notified the Maharashtra Stamp (Fourth Amendment) Act, 2026, prescribing specific stamp duty rates for financial guarantees, bank guarantees and letters of guarantee.

Key Points:

  1. The amendment revises the Maharashtra Stamp Act, 1958 to prescribe stamp duty rates for financial guarantees, bank guarantees and letters of guarantee.

  2. A new Article 34A has been inserted in Schedule I to specifically regulate stamp duty on guarantee instruments.

  3. Article 34A classifies different types of guarantees and prescribes the stamp duty payable on each category.

  4. The applicable stamp duty rates are as follows:

    Category of Guarantee

    Stamp Duty

    Financial or Bank Guarantee where the amount secured does not exceed ₹5 lakh

    0.1% of the amount secured, subject to a minimum of ₹500

    Financial or Bank Guarantee where the amount secured exceeds ₹5 lakh

    0.3% of the amount secured, subject to a maximum of ₹20 lakh

    Guarantee issued in favour of a Government Corporation, Local Authority or Statutory Body for public works or public procurement

    ₹500

    Renewal or extension of an existing financial or bank guarantee without any increase in the guaranteed amount

    ₹500

    Letter of Guarantee (other than financial or bank guarantees covered above)

    0.25% of the amount secured, subject to a maximum of ₹25,000

  5. The amendment deletes the separate entry relating to ‘Letter of Guarantee’ under Article 37 and brings such instruments within the scope of the new Article 34A.

Also Read: The Cost of Justice? Maharashtra’s Stamp Duty Shake-Up and its Ripple Effect on Arbitration in India

[Maharashtra Stamp (Fourth Amendment) Act, 2026, dated 22-7-2026]

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