O.Mu. No. 3667/C2/2012, Multi-State Cooperative Societies Stamp Duty Clarification
The Inspector General of Registration, Tamil Nadu Registration Department, issued Office Memorandum No. 3667/C2/2012 on 28 October 2013, clarifying that the stamp duty exemption granted under G.O. (Ms.) No. 2179 (Cooperation), dated 29 June 1966, does not apply to cooperative societies registered under the Multi-State Cooperative Societies Act, 2002. The memorandum forwards Commercial Taxes and Registration Department Letter No. 16495/J1/2012-5, dated 21 October 2013, which supersedes Government Letter No. 18639/11/2008-5, dated 9 April 2009.
Purpose
Office Memorandum No. 3667/C2/2012, issued on 28 October 2013 by the Inspector General of Registration, Tamil Nadu Registration Department, provides guidance to registration officers on stamp duty exemption claims by multi-state cooperative societies. It forwards the clarification issued by the Commercial Taxes and Registration Department in Letter No. 16495/J1/2012-5, dated 21 October 2013.
What the clarification says
The Commercial Taxes and Registration Department states that there is no provision in the Tamil Nadu Cooperative Societies Act, 1983, under which societies registered under the Multi-State Cooperative Societies Act, 2002, are treated as registered under the Tamil Nadu law.
The Registrar of Cooperative Societies explained that:
- Section 51 of the Tamil Nadu Cooperative Societies Act, 1983, permits the Government to exempt a registered society or class of registered societies from stamp duty and registration fees by notification.
- A registered society under the Tamil Nadu Cooperative Societies Act, 1983, means a cooperative society registered or treated as registered under that Act.
- A multi-state cooperative society is separately defined as a society registered or treated as registered under the Multi-State Cooperative Societies Act, 2002.
Effect on stamp duty exemption
The stamp duty exemption granted through G.O. (Ms.) No. 2179 (Cooperation), dated 29 June 1966, was issued under the former Tamil Nadu Cooperative Societies Act, 1961. The Commercial Taxes and Registration Department concludes that this exemption does not extend to cooperative societies registered under the Multi-State Cooperative Societies Act, 2002.
A property buyer or professional dealing with a document executed by a multi-state cooperative society should therefore not assume that the 1966 stamp duty exemption applies merely because the entity is a cooperative society.
Administrative action
Office Memorandum No. 3667/C2/2012 directs that the government clarification be sent to all Sub-Registrars for appropriate action. Sub-Registrars, District Registrars and Deputy Inspectors General of Registration were also instructed to acknowledge receipt through the stated administrative chain.
Commercial Taxes and Registration Department Letter No. 16495/J1/2012-5 expressly supersedes Government Letter No. 18639/11/2008-5, dated 9 April 2009.
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Common questions
Does the 1966 cooperative society stamp duty exemption cover a multi-state cooperative society?
No. The clarification states that the exemption under G.O. (Ms.) No. 2179 (Cooperation), dated 29 June 1966, does not apply to societies registered under the Multi-State Cooperative Societies Act, 2002.
Is a multi-state cooperative society treated as registered under the Tamil Nadu Cooperative Societies Act, 1983?
No. The Registrar of Cooperative Societies stated that the Tamil Nadu Cooperative Societies Act, 1983, contains no provision treating societies registered under the Multi-State Cooperative Societies Act, 2002, as registered under the Tamil Nadu law.
Who was instructed to follow this clarification?
The Inspector General of Registration sent the clarification to all Sub-Registrars, District Registrars and Deputy Inspectors General of Registration for appropriate action and acknowledgement.
Did the government clarification replace any earlier guidance?
Yes. Commercial Taxes and Registration Department Letter No. 16495/J1/2012-5, dated 21 October 2013, supersedes Government Letter No. 18639/11/2008-5, dated 9 April 2009.
