Official guidance, Tamil Nadu land law
G.O. (Ms.) No. 29, Stamp Duty and Registration Fees, Reduction for amalgamation or reconstruction of companies
Commercial Taxes and Registration (J1) Department, Government of Tamil Nadu, issued G.O. (Ms.) No. 29 dated 01.03.2019 to reduce stamp duty and registration fees for documents that transfer immovable property as part of amalgamation or reconstruction of companies. The Government fixed stamp duty at 2 percent of the market value of the immovable property or 0.6 percent of the aggregate market value of the shares, whichever is higher, and reduced the registration fee to a maximum of Rs. 30,000.
What this document is
Commercial Taxes and Registration (J1) Department, Government of Tamil Nadu, issued G.O. (Ms.) No. 29 dated 01.03.2019 after the Budget Speech for 2019 to 2020. It announces and implements a reduction in stamp duty and registration fees for instruments that evidence transfer of immovable property when companies are amalgamated or reconstructed.
A covering communication from the Inspector General of Registration, Office of the Inspector General of Registration, in Letter No. 6326/C2/2019 dated 06.03.2019, forwarded the Government Order to registration officials for action and information.
What it governs
G.O. (Ms.) No. 29 dated 01.03.2019 applies to:
- instruments of transfer of property relating to amalgamation of companies
- instruments of transfer of property relating to reconstruction of companies
- transfer of immovable property involved in those company transactions
The text says the change was made to clear ambiguities related to payment of stamp duty and registration fees on such transactions.
Key provisions
The notification under the Indian Stamp Act, 1899 reduces stamp duty for relevant transfer instruments to:
- 2 percent of the market value of the immovable property, or
- 0.6 percent of the aggregate of the market value of the shares,
- whichever is higher
The notification under the Registration Act, 1908 reduces the registration fee for instruments of transfer of immovable property relating to amalgamation or reconstruction of companies to:
- a maximum of Rs. 30,000
Who it affects
This matters to:
- companies involved in amalgamation
- companies undergoing reconstruction
- owners and buyers dealing with immovable property transferred through those company processes
- Sub Registrars and District Registrars who register such documents
Practical effect
If immovable property is transferred through amalgamation or reconstruction of companies, the document says the stamp duty and registration fee are not to be worked out under ordinary uncertainty for these transactions. Instead, the reduced rates and cap stated in Commercial Taxes and Registration (J1) Department, Government of Tamil Nadu, G.O. (Ms.) No. 29 dated 01.03.2019 apply to the covered instruments.
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 company amalgamation documents involving immovable property?
Yes. Commercial Taxes and Registration (J1) Department, Government of Tamil Nadu, G.O. (Ms.) No. 29 dated 01.03.2019 covers instruments of transfer of property relating to amalgamation of companies.
Does this also cover reconstruction of companies?
Yes. The notifications expressly apply to instruments relating to amalgamation or reconstruction of companies.
What stamp duty is fixed for these transfers?
The stamp duty is reduced to 2 percent of the market value of the immovable property or 0.6 percent of the aggregate of the market value of the shares, whichever is higher.
Is there a cap on registration fees for these documents?
Yes. The registration fee is reduced to a maximum of Rs. 30,000 for instruments of transfer of immovable property relating to amalgamation or reconstruction of companies.
