G.O. Ms. No. 29, Reduction of Stamp Duty and Registration Fees for Company Amalgamation or Reconstruction, 2019
The Government of Tamil Nadu, Commercial Taxes and Registration Department, issued G.O. Ms. No. 29 on 1st March 2019 to reduce stamp duty and registration fees for property transfer instruments connected with the amalgamation or reconstruction of companies. Stamp duty is reduced to the higher of two percent of the market value of the immovable property or 0.6 percent of the aggregate market value of the shares, while the registration fee for transfers of immovable property is reduced to Rs.30,000.
What the notifications cover
G.O. Ms. No. 29, issued by the Government of Tamil Nadu, Commercial Taxes and Registration Department on 1st March 2019, contains two connected notifications. They reduce the stamp duty and registration fee payable on specified property transfer instruments relating to the amalgamation or reconstruction of companies.
The reductions apply to instruments connected with company amalgamation or reconstruction. The Gazette does not extend them generally to every sale, gift or other property transfer.
Stamp duty reduction
Notification No. II(2)/CTR/205(j-1)/2019 reduces the stamp duty charged on instruments transferring property in connection with the amalgamation or reconstruction of companies.
The reduced duty is the higher of:
- Two percent of the market value of the immovable property.
- 0.6 percent of the aggregate market value of the shares.
Both calculations therefore need to be considered, and the higher result is the applicable stamp duty under the notification. The Governor of Tamil Nadu issued this reduction using the power under clause (a) of sub-section (1) of Section 9 of the Indian Stamp Act, 1899.
Registration fee reduction
Notification No. II(2)/CTR/205(j-2)/2019 reduces the fee payable under the Registration Act, 1908 for instruments transferring immovable property in connection with the amalgamation or reconstruction of companies.
The key provision is:
- The registration fee is reduced to Rs.30,000, stated in the Gazette as Rupees thirty thousand only.
The Governor of Tamil Nadu issued the fee reduction under Section 78-A of the Registration Act, 1908, after recording that the reduction was considered necessary in the public interest.
Who may be affected
G.O. Ms. No. 29 is relevant to companies undergoing amalgamation or reconstruction where the arrangement involves an instrument transferring property. Companies, property owners and professionals handling such instruments should distinguish between the two charges: stamp duty is calculated using the stated market value comparison, while the registration fee for an instrument transferring immovable property is fixed at Rs.30,000.
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
What stamp duty applies to a property transfer under a company amalgamation?
The duty is the higher of two percent of the market value of the immovable property or 0.6 percent of the aggregate market value of the shares.
Is the registration fee also calculated as a percentage?
No. For an instrument transferring immovable property relating to the amalgamation or reconstruction of companies, the registration fee is reduced to Rs.30,000.
Does the Rs.30,000 amount include stamp duty?
No. The Gazette treats stamp duty and the registration fee separately. Stamp duty uses the stated market value calculation, while Rs.30,000 is the reduced registration fee.
Does this reduction apply to an ordinary property sale?
The Gazette limits the reductions to instruments relating to the amalgamation or reconstruction of companies. It does not state that they apply generally to ordinary property sales.
