G.O. (Ms.) No.18, 50% Stamp Duty Exemption for SIPCOT Joint Venture Companies, 2021
The Commercial Taxes and Registration (J1) Department issued G.O. (Ms.) No.18 dated 1 February 2021, providing a fifty percent reduction in stamp duty for specified sale, lease and lease-cum-sale instruments executed by joint venture companies promoted by the State Industries Promotion Corporation of Tamil Nadu. The benefit applies to industrial plots in qualifying joint venture industrial parks and is deemed to have taken effect on 13 March 2020.
What the government order does
G.O. (Ms.) No.18 dated 1 February 2021 of the Commercial Taxes and Registration (J1) Department contains a notification reducing the stamp duty chargeable on specified property instruments to fifty percent. The Government of Tamil Nadu directed that the notification be published in the next issue of the Tamil Nadu Government Gazette.
The notification is connected to a plan for the State Industries Promotion Corporation of Tamil Nadu to develop industrial parks through joint ventures with private landowners. The underlying announcement referred to private landowners holding at least 100 acres of land, but the operative notification defines the benefit by the type of company, industrial park, plot and instrument involved.
Transactions covered
The notification appended to G.O. (Ms.) No.18 applies only when all the stated conditions are met:
- The instrument is a sale, lease or lease-cum-sale instrument.
- It is executed by a joint venture company promoted by the State Industries Promotion Corporation of Tamil Nadu.
- It concerns an industrial plot situated in a joint venture State Industries Promotion Corporation of Tamil Nadu industrial park.
- The industrial park was formed by a joint venture company promoted by the State Industries Promotion Corporation of Tamil Nadu with private landowners.
- The duty reduction applies to the value stated in the instrument.
The notification reduces the stamp duty chargeable under the Indian Stamp Act, 1899 to fifty percent for eligible instruments. It does not state that every transaction involving State Industries Promotion Corporation of Tamil Nadu land, every private industrial park or every industrial property receives the reduction.
Who may be affected
G.O. (Ms.) No.18 may affect purchasers, lessees, businesses and professionals handling eligible industrial plots in the specified joint venture industrial parks. Before relying on the reduction, they should establish that the company executing the instrument was promoted by the State Industries Promotion Corporation of Tamil Nadu and that the plot is within a qualifying joint venture park formed with private landowners.
Effective date and administration
The notification appended to G.O. (Ms.) No.18 states that it is deemed to have come into force on 13 March 2020. The Inspector General of Registration circulated the government order to registration officials, including Deputy Inspectors General of Registration, District Registrars and Sub-Registrars, for information and action.
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 fifty percent stamp duty rate apply to every SIPCOT industrial plot?
No. It applies to specified instruments for industrial plots in joint venture industrial parks formed by State Industries Promotion Corporation of Tamil Nadu promoted joint venture companies with private landowners.
Which property documents qualify for the reduction?
The notification covers instruments of sale, lease and lease-cum-sale that satisfy its joint venture company and industrial park conditions.
When did the stamp duty reduction take effect?
The notification states that it is deemed to have come into force on 13 March 2020.
Is stamp duty completely exempt for an eligible transaction?
No. The duty chargeable is reduced to fifty percent on the value stated in the eligible instrument.
