Stamp Duty on Supplementary LLP Agreement in Mumbai: Everything You Need to Know
A Supplementary LLP agreement is an important document that helps in modifying or adding clauses to the existing LLP agreement. The Maharashtra Stamp Act, 1958, governs the stamp duty applicable to such agreements in Mumbai. In this article, we will discuss everything you need to know about Stamp Duty on Supplementary LLP Agreement in Mumbai.
What is Stamp Duty?
Stamp duty is a tax levied by the state government on various documents. It is levied to make the document legally enforceable and to provide proof of the transaction. It is important to pay the correct amount of stamp duty as it acts as evidence in a court of law.
What is a Supplementary LLP Agreement?
A Supplementary LLP agreement is a document that modifies an existing LLP agreement. It is executed when any changes or additions need to be made to the original LLP agreement. It is essential to file the Supplementary LLP agreement with the Registrar of Companies to make it legally enforceable.
Stamp Duty on Supplementary LLP Agreement in Mumbai
The stamp duty on a Supplementary LLP agreement in Mumbai is governed by the Maharashtra Stamp Act, 1958. The stamp duty applicable to the document depends on the value of the LLP. The value of the LLP in Mumbai is calculated based on the following:
– Book Value of Assets
– Capital Contribution
– Profit Sharing Ratio
The stamp duty payable on the Supplementary LLP Agreement in Mumbai is 0.1% of the LLP`s total value, with a maximum cap of Rs. 1,00,000.
Procedure for Payment of Stamp Duty
To pay the stamp duty on Supplementary LLP Agreement in Mumbai, follow these steps:
1. Obtain the stamp paper: The stamp paper can be obtained from any authorized stamp vendor or the stockholding corporation of India Ltd (SHCIL).
2. Draft the document: Draft the Supplementary LLP agreement with the required clauses and details.
3. Calculate the stamp duty: Calculate the stamp duty payable based on the LLP`s total value.
4. Purchase the stamp paper: Purchase the stamp paper of the required value and denomination.
5. Print or write the document: Print or write the draft on the purchased stamp paper.
6. Execute the document: The document should be executed by all the parties involved in the LLP.
7. Get it attested: Attest the document by a notary public.
8. File the document: The document should be filed with the Registrar of Companies.
Conclusion
Stamp duty is an important tax that needs to be paid on various documents, including Supplementary LLP agreements. The Maharashtra Stamp Act, 1958, governs the stamp duty applicable to Supplementary LLP agreements in Mumbai. The stamp duty payable on the Supplementary LLP Agreement in Mumbai is 0.1% of the LLP`s total value, with a maximum cap of Rs. 1,00,000. It is important to pay the correct amount of stamp duty and file the document with the Registrar of Companies to make it legally enforceable.