When it comes to buying property in Delhi, stamp duty and registration charges are an important aspect that can’t be overlooked. In recent years, the trend of forming Limited Liability Partnerships (LLP) has been on the rise due to the numerous benefits they offer to businesses. If you’re planning to form an LLP agreement in Delhi and are unsure about the stamp duty fees and charges, then this article is for you.
What is Stamp Duty?
Stamp Duty is a mandatory fee that is levied by the government on various legal documents, including agreements, deeds, and contracts. Stamp duty is usually calculated as a percentage of the property`s value and varies from state to state in India. The payment of stamp duty is necessary to legalize and authenticate legal documents.
LLP Agreement and Stamp Duty in Delhi
In Delhi, the Stamp Duty Act, 1958, governs the amount of stamp duty to be paid on different documents. When it comes to an LLP Agreement, the stamp duty payable depends on the capital contribution of the partners. Capital contribution refers to the amount of money put in by each partner to initiate and run an LLP. The LLP Agreement is a legal document that defines the partners` rights, responsibilities, and obligations. It also outlines the LLP`s scope of work, the profit-sharing ratio, and the procedure for admission or resignation of partners.
As per the Delhi Stamp Act, 1958, the stamp duty payable on an LLP Agreement is 0.3% of the total contribution amount. For example, if the total capital contribution of all the partners is Rs. 10 lakhs, the stamp duty payable will be Rs. 3,000.
Along with the stamp duty, there is also a registration fee that needs to be paid while registering the LLP Agreement with the Registrar of Companies in Delhi. The registration fee varies based on the total contribution amount and ranges from Rs. 200 to Rs. 10,000.
Forming an LLP agreement in Delhi requires compliance with the stamp duty and registration fees as per the Stamp Duty Act, 1958. The stamp duty payable on an LLP agreement is 0.3% of the total capital contribution made by the partners. It is essential to calculate the stamp duty and registration fees accurately as non-compliance can lead to legal issues and fines. It is always advisable to consult a professional or a legal expert who can guide you through the process and ensure compliance with the laws.