ARTICLE
29 October 2024

Government Of Maharashtra Amends The Maharashtra Stamp Act 1958.

MH
Mansukhlal Hiralal & Co.

Contributor

Mansukhlal Hiralal & Co. a multi-service law firm takes great pride in providing quality legal advice for over 100 years. We have offices in Mumbai & Delhi. The firm has around 25 fee earners which includes partners, of counsels, consultants and associates. We provide complete legal services to a wide array of corporates, individuals, national and international clients. We have a peerless reputation for high professional standards and always adopt an intellectual and practical approach towards our clients’ needs.
The Government of Maharashtra has recently enacted the Maharashtra Stamp (Amendment) Ordinance 2024, which further amends the Maharashtra Stamp Act of 1958.
India Maharashtra Government, Public Sector

The Government of Maharashtra has recently enacted the Maharashtra Stamp (Amendment) Ordinance 2024, which further amends the Maharashtra Stamp Act of 1958. This ordinance which came into effect on 31 July 2024, introduces significant changes to the stamp duty structure in the state, particularly affecting affidavits, agreements, share capital, and partnership instruments etc. The primary objective is to enhance uniformity in the levy of stamp duties while simultaneously increasing the government revenue. The changes reflect a broader strategy to modernize tax collection mechanisms within the state.

1. Highlights of the Ordinance

1.1 A table reflecting the modified rates is as under:

Sr. No. Article No.
(Schedule I of the Maharashtra Stamp Act)
Particulars of Document Stamp Duty before Ordinance (In Rupees) Stamp Duty after Ordinance (In Rupees)
1. Article 4 Affidavit Rs. 100/- Rs. 500/-
2. Article 5 (h) (B) Agreement or its records or memorandum of an Agreement Rs. 100/- Rs. 500/-
3. Article 8 Appraisement or Valuation Rs. 100/- Rs. 500/-
4. Article 9 Apprenticeship Deed Rs. 100/- Rs. 500/-
5. Article 10 Articles of Association of a company 0.2% on share capital or increased share capital however, not more than 50,00,000/- 0.3% on share capital or increased share capital however, not more than 1,00,00,000/-
6. Article 12 Award
a) Relating to immovable property Rs. 500/-
b) Relating to movable property not more than 50,00,000/- Rs. 500/- 0.75%
c) Relating to movable property above 50,00,000/- not more than 5,00,00,000/- Rs. 37,500 + 0.5% on the amount above Rs. 50,00,000/
d) Relating to movable property above Rs.5,00,00,000/- Rs. 2,62,500 + 0.25% on the amount above Rs. 5,00,00,000/-
7. Article 27 Counterpart or duplicate Rs. 100/- Max Rs. 500/-
8. Article 30 Divorce Rs. 100/- Rs. 500/-
9. Article 38 Letter of License Rs. 100/- Rs. 500/-
10. Article 44 Note of Protest by the ship master Rs. 100/- Rs. 500/-
11. Article 47 (1) (b) Partnership; where a share is bought in by way of cash more than Rs. 50,000/- Rs. 15,000/- Max Rs. 50,000/-
12. Article 49 Protest of Bill or Note Rs. 100 Rs. 500 /-
13. Article 50 Protest by Master of Ship Rs. 100 Rs. 500/-
14. Article 52 (a) Release- Ancestral Property Rs. 200 Rs. 500/-
15. Article 58 (a) Surrender of Lease without any consideration Rs. 200 Rs. 500/-
16. Article 63 (a) and Article 63 (b) Works Contract (a) Up to Rs. 5,00,000/- Rs. 500/- Rs. 500/-
(b) Above Rs. 5,00,000/- to 10,00,000/- Rs. 500/- Rs. 500/- plus 0.3% on the amount above Rs. 5,00,000/-
Above Rs. 10,00,000/- Rs. 500 plus 0.1% not more than Rs.25,00,000/- Rs. 1,000/-

1.2 Simplification of Chargeability

The ordinance amends Schedule I of the Maharashtra Stamp Act to increase the chargeability under various articles. Wherever a fee of ₹100 was previously applicable, it has now been standardized to ₹500.

MHCO Comment

The Maharashtra Stamp (Amendment) Ordinance, 2024, represents a significant change in the state of Maharashtra by increasing rates and simplifying regulations, the government aims to bolster its revenue streams while ensuring that taxpayers have a clearer understanding of their obligations. Stakeholders in real estate, corporate sectors, and legal fields should take note of these changes as they adjust their practices accordingly in light of the new regulatory modifications.

This article was released on 25 October 2024.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Find out more and explore further thought leadership around Government Regulation and Public Sector Law

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More