Stamp Duty Rate Changes in Maharashtra from 14.10.2024

Maharashtra government has enacted an ordinance on October 14, 2024, introducing significant changes to the state’s stamp duty structure. The minimum stamp duty has been raised to Rs 500, affecting various instruments. Key changes include increased stamp duties for Affidavits, Agreements (not otherwise specified), Appraisements or Valuations, and Partnership Deeds, with each now requiring Rs 500 instead of the previous Rs 100. Additionally, the stamp duty on Articles of Association has been adjusted from 0.2% (capped at Rs 50 lakhs) to 0.3% (capped at Rs 1 crore). The duty on Arbitral Awards has also been revised, particularly for awards related to movable property, with rates now ranging from 0.75% to a maximum of Rs 2,62,500 for higher valuations. Other instruments affected include Divorce Deeds, Licenses, and Works Contracts, which have updated stamp duties according to new brackets. The ordinance reflects a broader effort to reform the state’s taxation system by increasing revenue through higher stamp duties.
REVENUE AND FORESTS DEPARTMENT
Mantralaya, Madam Cama Marg, Hutatma Rajguru Chowk,
Mumbai 400 032, dated the 14th October 2024.
MAHARASHTRA ORDINANCE No. XII OF 2024.
AN ORDINANCE
further to amend the Maharashtra Stamp Act.
WHEREAS, both Houses of the State Legislature are not in session;
AND, WHEREAS, the Governor of Maharashtra is satisfied that circumstances exist which render it necessary for him to take immediate LX of action further to amend the Maharashtra Stamp Act, for the purposes 1958. hereinafter appearing;
NOW, THEREFORE, in exercise of the powers conferred by clause (1) of article 213 of the Constitution of India, the Governor of Maharashtra is hereby pleased to promulgate the following Ordinance, namely :-
1. Short title and commencement.
(1) This Ordinance may be called the Maharashtra Stamp (Amendment) Ordinance, 2024.
(2) It shall come into force at once.
2. Amendment of SCHEDULE I of LX of 1958.
In SCHEDULE I appended to the Maharashtra Stamp Act,—
(1) in article 4, in column (2), for the words “One hundred rupees” the words “Five hundred rupees” shall be substituted;
(2) in article 5, in clause (h), in sub-clause (B), in column (2), for the words “One hundred rupees” the words “Five hundred rupees” shall be substituted;
(3) in article 8, in column (2), for the words “One hundred rupees” the words “Five hundred rupees” shall be substituted;
(4) in article 9, in column (2), for the words “One hundred rupees” the words “Five hundred rupees” shall be substituted;
(5) in article 10, in column (2), for the figures, words and letters “0.2 per cent. on share capital or increased share capital, as the case may be, subject to a maximum of Rs. 50,00,000”, the figures and words “0.3 per cent. on share capital or increased share capital, as the case may be, subject to a maximum of rupees One Crore” shall be substituted;
(6) for article 12, the following article shall be substituted, namely :—

“12. AWARD, that is to say, any decision in writing by an arbitrator or umpire, on a reference made otherwise than by an order of the Court in the course of a suit, being an award made as a result of a written agreement to submit present or future differences to Arbitration but not being an award directing partition, —

(a) relating to immovable property;
The same duty as is leviable on a conveyance underclause (b) of article 25.

(b) relating to movableproperty,—

(i) where the amount granted in the award, does not exceed rupees fifty lakhs ;
0.75 per cent. of the granted in the award.

(ii) where the amount granted in the award, plus exceeds rupees fifty lakhs but does not exceed rupees five crores;
Rupees thirty seven thousand five hundred 0.5 per cent. of the amount granted in the award.

(iii) where the amount granted in the award, exceeds rupees five crores;
Two lakhs sixty two thousand five hundred rupees plus 0.25 per cent. of the amount granted in the award. “;

(7) in article 27, in column (2), for the words “rupees one hundred” the words “rupees five hundred” shall be substituted;
(8) in article 30, in column (2), for the words “One hundred rupees” the words “Five hundred rupees” shall be substituted;
(9) in article 38, in column (2), for the words “One hundred rupees” the words “Five hundred rupees” shall be substituted;
(10) in article 44, in column (2), for the words “One hundred rupees” the words “Five hundred rupees” shall be substituted;
(11) in article 47, in clause (1), in sub-clause (b), in column (2), for the words “fifteen thousand” the words “fifty thousand” shall be substituted;
(12) in article 49, in column (2), for the words “One hundred rupees” the words “Five hundred rupees” shall be substituted;
(13) in article 50, in column (2), for the words “One hundred rupees” the words “Five hundred rupees” shall be substituted;
(14) in article 52, in clause (a), in column (2), for the words “Two hundred rupees” the words “Five hundred rupees” shall be substituted;
(15) in article 58, in clause (a), in column (2), for the words “Two hundred rupees” the words “Five hundred rupees” shall be substituted;
(16) in article 63,—
(i) in clause (a), in column (1), for the words “ten lakh” the words “five lakh” shall be substituted;
(ii) in clause (b),—
(A) in column (1), for the words “ten lakh” the words “five lakh” shall be substituted;
(B) in column (2), for the figures and words “0.1 per cent. of the amount above rupees ten lakh” the figures and words “0.3 per cent. of the amount above rupees five lakh” shall be substituted.
STATEMENT
With a view to bring simplicity and uniformity in levy of stamp duty and to increase the Government revenue, it is proposed to amend certain articles of Schedule I appended to the Maharashtra Stamp Act (LX of 1958).
2. The salient features of the proposed amendments to the said Act are as under :—
(i) to increase rate of stamp duty fixed long ago at the nominal amount of rupees hundred or rupees two hundred on certain instruments specified in articles 4, 5, 8, 9, 27, 30, 38, 44, 49, 50, 52 and 58 to rupees five hundred;
(ii) to increase rate of stamp duty and maximum limit of rate of stamp duty on the instrument of articles of association of a company specified in article 10;
(iii) to increase rate of stamp duty on the instrument of award by arbitrator specified in article 12;
(iv) to increase the maximum limit of rate of stamp duty on the instrument of partnership, where share contribution brought in by way of cash is in excess of rupees 50,000, specified in article 47;
(v) to increase the rate of stamp duty and maximum limit of rate of stamp duty on the instrument of works contract specified in article 63.
3. As both Houses of the State Legislature are not in session and the Governor of Maharashtra is satisfied that circumstances exists which render it necessary for him to take immediate action further to amend the Maharashtra Stamp Act, for the purposes aforesaid, this Ordinance is promulgated.
Mumbai,Dated the 14th October 2024.
C. P. RADHAKRISHNAN,Governor of Maharashtra.
By order and in the name of theGovernor of Maharashtra,
RAJESH KUMAR,Additional Chief Secretary to Government.