Maharashtra Stamp (Amendment) Ordinance, 2024

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The Governor of Maharashtra on October 14, 2024, issued the Maharashtra Stamp (Amendment) Ordinance, 2024, amending various articles containing stamp duty rates in Schedule I ("Amendment").

India Corporate/Commercial Law

The Governor of Maharashtra on October 14, 2024, issued the Maharashtra Stamp (Amendment) Ordinance, 2024, amending various articles containing stamp duty rates in Schedule I ("Amendment") of the Maharashtra Stamp Act, 1958 ("MSA"). The amendment came into effect immediately.

To enhance revenue in Maharashtra, the minimum stamp duty payable under the MSA was increased from INR 100 (Indian Rupees Hundred) to INR 500 (Indian Rupees Five Hundred), including certain other amendments in the stamp duty rates, as are listed below:

Article in Schedule I of the MSA	Description	Stamp duty before the Amendment	Stamp duty after the Amendment
Article 4	Affidavit, that is, a statement of facts in writing, signed by the person making it and confirmed under oath or, by affirmation if permitted under law.	INR 100	INR 500
Article 5(h)(B)	Agreement or its Records or Memorandum of an Agreement, if not otherwise provided for.	INR 100	INR 500
Article 8	Appraisement or Valuation, that is conducted without a court order during the course of a suit.	INR 100	INR 500
Article 9	Apprenticeship Deed, including any written document related to the service or training of an apprentice, clerk, or servant who is learning a trade or profession under a master, excluding formal articles of clerkship.	INR 100	INR 500
Article 10	Articles of Association, where the Company has no share capital or nominal share capital or increased share capital.	0.2% on share capital or increased share capital, as the case may be subject to a maximum of INR 50,00,000.	0.3% on share capital or increased share capital, as the case may be subject to a maximum of INR 1,00,00,000.
Article 12	Arbitration Award, that is, any decision in writing by an arbitrator or umpire, on a reference made.
	Relating to movable property	INR 500	Same as conveyance under Article 25(b) of MSA.
	Relating to movable property upto INR 50,00,000.		0.75% of the amount granted in the award.
	Relating to movable property above INR 50 lakhs up to INR 5,00,00,000.		INR 37,500 plus 0.5% of the amount granted in the award.
	Relating to movable property above to INR 5,00,00,000.		INR 2,62,500 plus 0.25% of the amount granted in the reward.
Article 27	Counterpart or Duplicate of any instrument chargeable with duty and in respect of which the proper duty has been paid.	Maximum INR 100	Maximum INR 500
Article 30	Divorce, any instrument by which any Person effects the dissolution of his marriage.	INR 100	INR 500
Article 38	Letter of License, that is, any agreement between a debtor and creditor, that the creditor shall, for a specified time, suspend his claims and allow the debtor to carry on his business at his own discretion.	INR 100	INR 500
Article 44	Note of protest by the ship master	INR 100	INR 500
Article 47(1)(b)	Partnership, inclusive of, Limited Liability Partnership and Joint Venture, where such share contribution brought in by way of cash is in excess of INR 50,000.	1% of the amount of share contribution subject to maximum of INR 15,000.	1% of the amount of share contribution subject to maximum of INR 50,000.
Article 49	Protest of Bill or Note, that is, any written statement by a Notary Public (or someone legally acting in that role), attesting the dishonour of a bill of exchange or promissory note	INR 100	INR 500
Article 50	Protest by master of Ship, any declaration of the particulars of their voyage drawn up by him with a view to the adjustment of losses or the calculation of averages, and every declaration in writing made by him against the charterers or the consignees for not loading or unloading the ship, when such declaration is attested or certified by a Notary Public or other person lawfully acting as such.	INR 100	INR 500
Article 52(a)	Release, ancestral property or part thereof.	INR 200	INR 500
Article 58(a)	Surrender of Lease, including an agreement for surrender of lease without any consideration.	INR 200	INR 500
Article 63	Works contracts, that is, a contract for works and labour or services involving transfer of property in goods in its execution and includes a sub-contract.
	Up to 5 lakhs	INR 500	INR 500
	Above Rs. 5 lakhs	INR 500 plus 0.1% of the amount above INR 10,00,000 subject to maximum of INR 25,00,000	INR 500 plus 0.3% on the amount above INR 5,00,000 subject to maximum of INR 25,00,000

A key change is imposition of ad valorem duty on arbitration awards, which was previously capped at INR 500 (Indian Rupees Five Hundred).

This ordinance was issued as both the Houses of the State Legislature are not in session and the Governor of Maharashtra was satisfied that circumstances exist rendering it necessary to take immediate action.

Please find a copy of the ordinance here.

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.