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Maharashtra brings Limited Liability Partnership, Joint Venture under Partnership Act

Hikes stamp duty to Rs 500 from Rs 100 for any document, TDR documents to be payable on market value

Instrument of any partnership inclusive of Limited Liability Partnership and Joint Venture will now attract stamp duty as per the market value of the property which will be transferred in such transactions.

This is expected to impact the JV investments especially in the realty sector as the project cost is likely to shoot up.

TDR documents are likely to be impacted as the stamp duty will have to be now payable on market value. Earlier it was 3% of the consideration amount. The provisions in this regard are part of the Maharashtra Stamp (Amendment) Bill presented in the legislature.

Besides, the state government has proposed hike in stamp duty to 400% from the present level of 200% for less payment and included a clause whereby Rs 500 stamp duty paper instead of Rs 100 stamp duty paper will be needed for any document.

Further, individual, institution, organization, company or a body responsible for creating, executing, maintaining, recording and verifying an instrument chargeable with the stamp duty will have to now furnish information related to stamp duty payment to the concerned authority. Officers will be entrusted with powers to inspect and seize and impound the chargeable instruments

Additionally, if any person prevents or obstructs entry of any officer to give any reasonable assistance, he or she, on conviction, will be punished with imprisonment for one month which can be extended up to six months and be fined with Rs 2,500.

Revenue Department official told Business Standard, ”The bill has been moved to streamline the procedural aspects in the administration and also to bring simplicity and uniformity in levy of stamp duty.”

The official informed that clause has been inserted to bring rationality in the rates of stamp duty on the instrument of transfer of tenancy right and on the instrument of transfer of lease.

According to the official, the stamp duty on certain instruments, which is decided long back at nominal amount of Rs 100 or Rs 200, will be increased rationally. The upper limit of stamp duty on the instrument of works contract will also be hiked.

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Limited Liability Partnership

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Hikes stamp duty to Rs 500 from Rs 100 for any document, TDR documents to be payable on market value

Instrument of any partnership inclusive of Limited Liability Partnership and Joint Venture will now attract stamp duty as per the market value of the property which will be transferred in such transactions

Instrument of any partnership inclusive of Limited Liability Partnership and Joint Venture will now attract stamp duty as per the market value of the property which will be transferred in such transactions.

This is expected to impact the JV investments especially in the realty sector as the project cost is likely to shoot up.

TDR documents are likely to be impacted as the stamp duty will have to be now payable on market value. Earlier it was 3% of the consideration amount. The provisions in this regard are part of the