subodh bonde 15 August 2023

Stamp duty payable on transfer of midc land from proprietor to pvt ltd with major shares

We have converted from proprietary firm to pvt ltd with proprietor being the major share holder in pvt ltd company. Midc land belonging to the proprietor in navi mumbai maharahstra has now been transferred from proprietor to pvt ltd company in which he owns majority stake. Please confirm if stamp duty is payable and how to register our deed of assignment.

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Quick Summary

This discussion addresses stamp duty on transferring MIDC land from a sole proprietor to a private limited company. The proprietor, who retains majority shares in the new company, is seeking clarification on stamp duty payment and the registration process for the deed of assignment. The initial advice suggests that no stamp duty is payable as movable and immovable properties automatically vest in the company upon conversion, negating the need for a transfer instrument. Further questions focus on the procedure for registering the deed without stamp duty and relevant legal provisions.

3 Replies

kavksatyanarayana (subregistrar/supdt.(retired)) 15 August 2023

All movable and immovable properties of the firm automatically vest in the Company. No instrument of transfer is required to be executed and hence no stamp duty is required to be paid.

subodh bonde 15 August 2023

Thank you for your reply sir. Can you please let me know how to register the said deed of assignment without paying stamp duty? what is the process to be followed at the registrar office thane maharashtra? What is the provision for paying nil stamp duty in this case and how do we go about it?

Is there any specific provision / legal order/act which will help us in the same?