G.O. (Ms.) No.175, Amendment to MSME Stamp Duty and Registration Fee Exemption, 2020
The Government of Tamil Nadu, Commercial Taxes and Registration (J1) Department, issued G.O. (Ms.) No.175 dated 16 November 2020 to amend the definitions used for stamp duty and registration fee exemptions available to Micro and Small manufacturing enterprises. It replaces paragraph 4 of G.O. (Ms.) No.1 dated 6 January 2009, requiring the terms Micro and Small Enterprises to follow the monetary limit criteria notified by the Government of India, Ministry of Micro, Small and Medium Enterprises, as amended from time to time.
What the government order changes
G.O. (Ms.) No.175 dated 16 November 2020, issued by the Government of Tamil Nadu, Commercial Taxes and Registration (J1) Department, changes how Micro and Small Enterprises are identified for specified stamp duty and registration fee exemptions. It amends G.O. (Ms.) No.1, Commercial Taxes and Registration (J1) Department, dated 6 January 2009.
The earlier government order had granted stamp duty and registration fee exemptions to Micro and Small manufacturing enterprises. It also defined the terms Micro and Small for the notifications attached to that order.
Revised classification criteria
G.O. (Ms.) No.175 replaces paragraph 4 of G.O. (Ms.) No.1 with a revised paragraph. The main provisions are:
- The terms Micro and Small Enterprises in the notifications attached to G.O. (Ms.) No.1 must be understood according to monetary limit criteria notified by the Government of India.
- The relevant central notification is Ministry of Micro, Small and Medium Enterprises Notification No. S.O.2119(E), published in the Gazette of India, Extraordinary, dated 26 June 2020.
- Later amendments to the central monetary limit criteria will also apply.
- The amendment follows a proposal submitted by the Inspector General of Registration to enhance the monetary limit used in the earlier definition.
G.O. (Ms.) No.175 does not reproduce the monetary limits. Eligibility must therefore be checked against the Government of India criteria referred to in the amendment, including any later changes.
Who may be affected
G.O. (Ms.) No.175 is relevant to Micro and Small manufacturing enterprises seeking the stamp duty or registration fee exemptions granted under G.O. (Ms.) No.1 dated 6 January 2009. It may also be relevant to buyers, owners and professionals handling registration documents for such enterprises.
The amendment changes the classification test used for the exemptions. It does not state that all Micro, Small and Medium Enterprises receive an exemption, and it specifically describes the earlier exemptions as applying to Micro and Small manufacturing enterprises.
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Common questions
Does G.O. (Ms.) No.175 create a new stamp duty exemption?
No. It amends the definitions used for exemptions previously granted to Micro and Small manufacturing enterprises under G.O. (Ms.) No.1 dated 6 January 2009.
How is a Micro or Small Enterprise classified for these exemptions?
The classification must follow the monetary limit criteria in Government of India, Ministry of Micro, Small and Medium Enterprises Notification No. S.O.2119(E), dated 26 June 2020, as amended from time to time.
Does G.O. (Ms.) No.175 state the applicable monetary limits?
No. It refers to the monetary limit criteria notified by the Government of India rather than reproducing the limits.
Does the amendment apply to Medium Enterprises?
The amendment defines only the terms Micro and Small Enterprises for the notifications attached to G.O. (Ms.) No.1. The source does not extend the stated exemption to Medium Enterprises.
