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    Exemption of Stamp Duty in case of conversion

    Posted By : Juhee Goyal / Published on : 08-Apr-2023 04:15 AM / View : 150 / Comment : 2

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    Hi Folks!

    What is the treatment for stamp duty issues, both in terms of original incorporation and conversion from other business structures? Would there be any stamp duty exemption in case of conversion?
    Read more on : conversion case duty stamp exemption

    • Hi Juhee 

      Since Stamp Duty is the subject reserved for the States, the LLP Act does not contain any provision for treatment of stamp duty issues. The stamp duty payable will depend upon the relevant Stamp Act prescribed by the State Government/Union Territory.

      08-04-2023 / 04:40:31 AM
    • Stamp duty is a tax that is levied on certain types of documents, such as agreements, deeds, and instruments, in order to make them legally enforceable. The rate and applicability of stamp duty vary from state to state in India.

      With regard to the conversion of a company, stamp duty may be levied on the relevant documents, such as the memorandum of association and articles of association, depending on the state in which the company is registered. However, some states in India have provided exemptions or concessions in stamp duty for the conversion of a company from one form to another.

      For example, in Maharashtra, stamp duty is exempted for the conversion of a private company into a limited liability partnership (LLP) or a one-person company (OPC) or a small company, subject to certain conditions. Similarly, in Karnataka, stamp duty is exempted for the conversion of a private company into an LLP.

      It is important to note that the exemption or concession of stamp duty may vary from state to state and is subject to change from time to time. Therefore, it is advisable to consult with a legal professional or a chartered accountant to understand the applicable stamp duty laws and regulations in the relevant state before proceeding with the conversion of a company.

      10-04-2023 / 10:22:30 AM
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