If you are planning to set up a Limited Liability Partnership (LLP) in Maharashtra, you should be aware of the stamp duty that is payable on the LLP agreement. Stamp duty is a tax that is levied on various legal documents, including agreements, deeds, and contracts.
In Maharashtra, the stamp duty payable on an LLP agreement is governed by the Maharashtra Stamp Act, 1958. As per the act, the stamp duty payable on an LLP agreement is Rs. 5000. However, if the capital contribution of the LLP exceeds Rs. 5 lakhs, an additional stamp duty of Rs. 200 is payable for every Rs. 1 lakh or part thereof.
For example, if the capital contribution of the LLP is Rs. 10 lakhs, the stamp duty payable on the LLP agreement will be Rs. 8000. This includes the base stamp duty of Rs. 5000 and an additional stamp duty of Rs. 3000 (Rs. 200 for every Rs. 1 lakh or part thereof over Rs. 5 lakhs).
It is important to note that the LLP agreement must be stamped within 30 days of execution. If the LLP agreement is not adequately stamped, it will not be admissible as evidence in court.
To pay the stamp duty on the LLP agreement, you can purchase the stamp paper from the designated vendor or e-stamping portal. You will need to fill in the details of the LLP agreement, including the capital contribution, name and address of the LLP partners, and registered office address. Once the stamp paper is purchased, the LLP agreement can be executed and signed by all the LLP partners.
In conclusion, if you are planning to set up an LLP in Maharashtra, it is essential to factor in the stamp duty payable on the LLP agreement. The stamp duty payable will depend on the capital contribution of the LLP, and the LLP agreement must be stamped within 30 days of execution to be admissible as evidence in court. By ensuring that the LLP agreement is adequately stamped, you can avoid any legal or financial repercussions in the future.