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Stamp duty could rise; Maharashtra revenue may go up by Rs 150 crore/year

The Maharashtra cabinet has approved amendments to the Maharashtr... Read More
MUMBAI: The state cabinet on Monday approved a proposal to amend Schedule I of the Maharashtra Stamp Act, 1958.

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A govt press release said this is being done to bring simplicity and precision to document types and ease-of-doing business. It is expected to increase revenue by Rs 100-150 crore annually.

Under Schedule I, the stamp duty is levied on an instrument, not a transaction. These include debt acknowledgement, administration bond, adoption deed, affidavit, and agreement, amongst others.

In case of an award by a court for merger of companies, restructuring, liquidation or division, the current stamp duty applied for registration of documents is a mere Rs 500.

The revenue dept has now proposed that for up to Rs 5 lakh it will be Rs 500 and for court awards above Rs 5 lakh it will be 0.3% of the market value.

Further, the documents for which Rs 100 is charged as stamp duty for registration will be increased to Rs 500. As per the proposal, the stamp duty on Article of Association of Companies will increase from 0.2% to 0.3% or from Rs 50 lakh to a maximum of Rs 1 crore.
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Mumbai: The state cabinet on Monday approved a proposal to amend Schedule I of the Maharashtra Stamp Act, 1958.

A govt press release said this is being done to bring simplicity and precision to document types and ease-of-doing business. It is expected to increase revenue by Rs 100-150 crore annually.

Under Schedule I, the stamp duty is levied on an instrument, not a transaction. These include debt acknowledgement, administration bond, adoption deed, affidavit, and agreement, amongst others.
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In case of an award by a court for merger of companies, restructuring, liquidation or division, the current stamp duty applied for registration of documents is a mere Rs 500.

The revenue dept has now proposed that for up to Rs 5 lakh it will be Rs 500 and for court awards above Rs 5 lakh it will be 0.3% of the market value.

Further, the documents for which Rs 100 is charged as stamp duty for registration will be increased to Rs 500. As per the proposal, the stamp duty on Article of Association of Companies will increase from 0.2% to 0.3% or from Rs 50 lakh to a maximum of Rs 1 crore.


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Clara Lewis

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