Maharashtra revises stamp duty rates
ECONOMY & POLICY

Maharashtra revises stamp duty rates

A cash-strapped Mahayuti government – burdened with spiralling loans, budgetary provisions for populist schemes such as Ladki Bahin, Ladka Bhau and all – has decided to revise stamp duty rates, a move likely to add Rs 20 billion to its kitty. The decision will change stamp duty structure ranging from a small sum such as Rs 100 – which until now, was applicable for the registration of documents – to an unspecified amount, depending on the value of the amount involved in awarding work contracts, amalgamation, restructuring, division and mergers. The state cabinet decision, taken on Monday says that from now on, no document registration will take place for Rs 100, which was the minimum amount chargeable for registration of documents. For example – tenements constructed under the SRA (Slum Rehabilitation Authority) scheme would have attracted Rs 100 in stamp duty but now, it will be Rs 500. According to informed sources, Rs 100 and Rs 200 in stamp duty was applicable for the registration of 12 types of documents, which will now be up to Rs 500. Similarly, the stamp duty applicable for articles of association of a company will be revised and it will be 0.3 per cent, up from the earlier 0.2 per cent, for a maximum of Rs 1 crore (instead of the Rs 50 lakh, currently). Awards given on mergers, amalgamations, restructuring and division of companies currently attracts stamp duty at the rate of Rs 500. With the revision, it will be charged as per the market value of the fixed and moving assets of the company. Stamp duty charged at the rate of Rs 500 for awarding work contracts up to Rs 10 lakh and 0.1 %above the amount will see a major change. Now, the stamp duty rate will be Rs 500 for the work contract with an amount up to Rs 5 lakh and beyond that, it will be 0.3 per cent. The revenue department, which moved the proposal, has said that the revision will usher in simplicity, uniformity and ease of doing business. To effect the changes, the state will have to amend the provisions of the Maharashtra Stamp Duty Act, 1958.

A cash-strapped Mahayuti government – burdened with spiralling loans, budgetary provisions for populist schemes such as Ladki Bahin, Ladka Bhau and all – has decided to revise stamp duty rates, a move likely to add Rs 20 billion to its kitty. The decision will change stamp duty structure ranging from a small sum such as Rs 100 – which until now, was applicable for the registration of documents – to an unspecified amount, depending on the value of the amount involved in awarding work contracts, amalgamation, restructuring, division and mergers. The state cabinet decision, taken on Monday says that from now on, no document registration will take place for Rs 100, which was the minimum amount chargeable for registration of documents. For example – tenements constructed under the SRA (Slum Rehabilitation Authority) scheme would have attracted Rs 100 in stamp duty but now, it will be Rs 500. According to informed sources, Rs 100 and Rs 200 in stamp duty was applicable for the registration of 12 types of documents, which will now be up to Rs 500. Similarly, the stamp duty applicable for articles of association of a company will be revised and it will be 0.3 per cent, up from the earlier 0.2 per cent, for a maximum of Rs 1 crore (instead of the Rs 50 lakh, currently). Awards given on mergers, amalgamations, restructuring and division of companies currently attracts stamp duty at the rate of Rs 500. With the revision, it will be charged as per the market value of the fixed and moving assets of the company. Stamp duty charged at the rate of Rs 500 for awarding work contracts up to Rs 10 lakh and 0.1 %above the amount will see a major change. Now, the stamp duty rate will be Rs 500 for the work contract with an amount up to Rs 5 lakh and beyond that, it will be 0.3 per cent. The revenue department, which moved the proposal, has said that the revision will usher in simplicity, uniformity and ease of doing business. To effect the changes, the state will have to amend the provisions of the Maharashtra Stamp Duty Act, 1958.

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