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.
