LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

karan (shah)     26 May 2009

stamp duty in partnership ?

what is stamp duty in registration of partnership deed in gujarat and authorised capital is of rs 600000 ? 


 5 Replies

karan (shah)     26 May 2009

Originally posted by :karan
" what is stamp duty at the tionm of incorporation of partnership Firm in gujarat and authorised capital is of rs 600000 mentioned in the deed ?  "


A V Vishal (Advocate)     26 May 2009

Dear Karan,

On a Deed of Partnership the stamp duty under the Indian Stamp Act is a fixed one. Article 45 of the Indian Partnership Act, Article 47 in Maharashtra and Article 44 in Gujarat of Bombay Stamp Act speaks about duty payable for registration. The stamp duty is payable on a deed of retirement or a deed of dissolution under the same Articles. But in Maharashtra, and Gujarat if the deed of retirement or deed of dissolution affects any transfer of an immovable property, it will attract stamp duty as on a conveyance on the market value of the property.

The prescribed stamp duty for partnership , in case the capital contribution is more than Rs.50,000 is Rs. 500 for every Rs. 50,000 or part thereof (approx 1%) subject to a maximum of Rs. 5,000

Hence, the maximum slab of Rs.5,000 is applicable since the capital is Rs.6,00,000.

aruntrivedi (lawyer)     31 May 2009

Opinion of Vishal is correct and should be followed.

Rani mangal (Secretary)     07 April 2010

Hello All,

A partnership firn has three equal partners. They have fixed assets which includes office premises at book value of Rs. 9Lacs and business equipments at book value of Rs. 6Lacs. Total Rs. 15Lacs. Now on Ist April, 2010 the firms revalus these assets at Rs. 165Lacs (Rs. 162 Lacs for Office premises and Rs. 3 Lacs for business equipments) The differencial value of revaluation of Rs. 150 Lacs is credited in the partner's capital account equally (Rs. 50 Lacs each). Now on the same day after revaluation of assets one of the partners retires and a retirement deed is executed wherein he gets total Rs. 55 Lacs lumsum on account of his retirement.

What will be stamp duty payable on this retirement deed as per The Maharashtra Stamp Duty Act. The retirement deed is to be registered with Registrar if Firms only. Whether it will be enought If highest stamp duty of Rs. 5000 is paid on retirement deed or stamp duty is payable as per the conveyance/market valu/revalued value of asset.

Whether Registrar if Firm can refuse to register the retirement on account of less stamp duty.

Whether release deed is required to be executed by the retirering partner as the title of the immovabme property is not going to be changed as it will remain same in the name of the firm.

Vasudev (Deputy Manager - Legal)     25 July 2013

Agree with Vishal, but there is a typing error in amount of Maximum stamp duty. and correct Stamp duty amount is Rs.10000/- instated of Rs.5000/-.

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Popular Discussion

view more »

Post a Suggestion for LCI Team
Post a Legal Query