G.O. Ms. No. 165, Notifications under the Indian Stamp Act and Registration Act, 2020
The Government of Tamil Nadu, through the Commercial Taxes and Registration Department, issued G.O. Ms. No. 165 dated 5 November 2020 to reduce transaction costs for specified business loan security documents. It remits stamp duty on qualifying agreements executed by Micro, Small and Medium Enterprises under the Aatma Nirbhar Bharat Package or Emergency Credit Line Guarantee Scheme, and reduces the registration fee to 0.1% for qualifying agreements executed by Micro and Small Enterprises.
What the notifications cover
G.O. Ms. No. 165 of the Commercial Taxes and Registration Department, dated 5 November 2020, contains two related notifications. They apply to agreements relating to deposit of title deeds, pawn or pledge, when these instruments are executed in favour of a bank or financial institution as security for repayment of a qualifying business loan.
The notifications affect eligible enterprises, banks, financial institutions and professionals handling the relevant loan security documents. A property owner may be affected when title deeds are deposited as security for an eligible enterprise loan.
Stamp duty remission
The notification issued under the Indian Stamp Act remits the duty chargeable under Article 6 in Schedule I for specified security agreements.
Key conditions are:
- The instrument must be an agreement relating to deposit of title deeds, pawn or pledge.
- It must secure repayment of a loan.
- It must be executed in favour of a bank or financial institution.
- The loan must have been taken by a Micro, Small or Medium Enterprise.
- The loan must be under the Aatma Nirbhar Bharat Package or Emergency Credit Line Guarantee Scheme.
Registration fee reduction
The notification issued under the Registration Act reduces the registration fee to 0.1% for specified instruments.
The reduction applies where:
- The instrument is an agreement relating to deposit of title deeds, pawn or pledge.
- The agreement secures repayment of a loan.
- It is executed in favour of a bank or financial institution.
- The borrower is a Micro or Small Enterprise.
Unlike the stamp duty notification, the registration fee notification refers to Micro and Small Enterprises and does not state that the loan must be under the Aatma Nirbhar Bharat Package or Emergency Credit Line Guarantee Scheme.
Enterprise classification
For both notifications, the relevant enterprise classification has the meaning assigned in Government of India Ministry of Micro, Medium and Small Enterprises Notification S.O. 2119 (E), published in the Gazette of India, Extraordinary, dated 26 June 2020, as amended from time to time.
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 the stamp duty remission apply when I deposit property title deeds for a business loan?
It applies if the agreement is executed in favour of a bank or financial institution to secure a loan taken by a Micro, Small or Medium Enterprise under the Aatma Nirbhar Bharat Package or Emergency Credit Line Guarantee Scheme.
What registration fee applies to the covered loan security agreement?
The registration fee is reduced to 0.1% for a covered agreement executed by a Micro or Small Enterprise in favour of a bank or financial institution.
Are medium enterprises covered by both benefits?
No. The stamp duty remission covers Micro, Small and Medium Enterprises, while the registration fee reduction refers only to Micro and Small Enterprises.
Does the notification give an expiry date for these benefits?
No expiry date is stated in the supplied notification text.
