Commercial Taxes and Registration notifications on MSME stamp duty and registration fee relief
The Government of Tamil Nadu published notifications in the Tamil Nadu Government Gazette, Part II, Section 2, No. 4, Chennai, Wednesday, February 4, 2009, carrying Government Order Ms. No. 1, Commercial Taxes and Registration (J1), dated 6th January 2009. These notifications reduce stamp duty and registration fee to fifty per cent for certain sale, lease and lease-cum-sale documents connected with allotments under the Micro, Small and Medium Industries Policy, 2008, and remit stamp duty on mortgage or pledge documents executed by Micro Manufacturing Enterprises under that policy.
What this gazette notification does
The Government of Tamil Nadu, through Government Order Ms. No. 1, Commercial Taxes and Registration (J1), dated 6th January 2009, announced four tax and registration concessions linked to the Micro, Small and Medium Industries Policy, 2008. The notifications were published in the Tamil Nadu Government Gazette, Part II, Section 2, No. 4, dated 4th February 2009.
Who may be affected
This matters to buyers, allottees, industrial entrepreneurs, estate developers, lenders and property professionals dealing with industrial plots or premises covered by the Micro, Small and Medium Industries Policy, 2008.
It applies to documents executed in favour of:
- Micro and Small Enterprises sectors in Tamil Nadu Small Industries Development Corporation or Government developed estates.
- Entrepreneurs in privately developed estates approved under the Micro, Small and Medium Industries Policy, 2008.
- Micro Manufacturing Enterprises executing mortgage or pledge instruments under the Micro, Small and Medium Industries Policy, 2008.
Key concessions published
1. Stamp duty reduced for certain original allotments in Government or Tamil Nadu Small Industries Development Corporation estates
Stamp duty is reduced to fifty per cent for instruments of sale, lease or lease-cum-sale executed in favour of Micro and Small Enterprises sectors in Tamil Nadu Small Industries Development Corporation or Government developed estates under the Micro, Small and Medium Industries Policy, 2008.
- It applies at the time of original allotment.
- It is based on the transfer value fixed by the Corporation or Government for those estates.
2. Registration fee reduced for the same category
Registration fee is reduced to fifty per cent for instruments of sale, lease or lease-cum-sale in the same Tamil Nadu Small Industries Development Corporation or Government developed estates category.
- It applies at the time of original allotments.
- It is based on the transfer value fixed by the Corporation or Government.
3. Stamp duty reduced for approved privately developed estates
Stamp duty is reduced to fifty per cent for instruments of sale, lease or lease-cum-sale executed in favour of entrepreneurs in privately developed estates approved under the Micro, Small and Medium Industries Policy, 2008.
- It applies at the time of original allotment.
- It is based on the guideline value of the property.
4. Registration fee reduced for approved privately developed estates
Registration fee is reduced to fifty per cent for the same category of sale, lease or lease-cum-sale documents in approved privately developed estates.
- It applies at the time of original allotment.
- It is based on the guideline value of the property.
5. Stamp duty remitted for mortgage or pledge documents
Stamp duty is remitted for instruments of mortgage or pledge executed by Micro Manufacturing Enterprises under the Micro, Small and Medium Industries Policy, 2008.
Practical takeaway
If your industrial property document falls within these notified categories, the gazette gives a specific concession on stamp duty or registration fee. The benefit is tied to the type of estate, the type of document, and whether it is at the time of original allotment.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does this apply to sale deeds only?
No. The notifications cover instruments of sale, lease or lease-cum-sale. A separate notification also covers instruments of mortgage or pledge executed by Micro Manufacturing Enterprises.
Do privately developed industrial estates get the same benefit as Government or Tamil Nadu Small Industries Development Corporation estates?
Both categories get relief, but the notifications describe them separately. Government or Tamil Nadu Small Industries Development Corporation developed estates are covered for Micro and Small Enterprises sectors, and privately developed estates must be approved under the Micro, Small and Medium Industries Policy, 2008.
Is the reduced duty or fee available for any transfer in these estates?
The text says the reduction applies at the time of original allotment or original allotments. It does not state that later resale transactions are covered.
How is the value taken for calculating the concession?
For Tamil Nadu Small Industries Development Corporation or Government developed estates, the notifications refer to the transfer value fixed by the Corporation or Government. For approved privately developed estates, the notifications refer to the guideline value of the property.
