ARTICLE
8 November 2024

Maharashtra Stamp (Amendment) Ordinance, 2024

AP
Argus Partners

Contributor

Argus Partners is a leading Indian law firm with offices in Mumbai, Delhi, Bengaluru and Kolkata. Innovative thought leadership and ability to build lasting relationships with all stakeholders are the key drivers of the Firm. The Firm has advised on some of the largest transactions in India across various industry sectors. The Firm also, regularly advises the boards of some of the biggest Indian corporations on governance matters. The lawyers of the Firm have been consistently regarded as the trusted advisors to its clients with a deep understanding of the relevant business domain, their business needs and regulatory nuances which enables them to clearly identify the risks involved and advise mitigation measures to protect their interests.
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.

  1. Relating to movable property

INR 500

Same as conveyance under Article 25(b) of MSA.

  1. Relating to movable property upto INR 50,00,000.

0.75% of the amount granted in the award.

  1. 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.

  1. 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.

  1. Up to 5 lakhs

INR 500

INR 500

  1. 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.

Find out more and explore further thought leadership around Business Law and Corporate 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