In a significant move aimed at boosting state revenue, the Maharashtra government has enacted an ordinance to amend the Maharashtra Stamp Act of 1958. This new regulation proposes a substantial increase in stamp duty on affidavits, agreements, and related documents, raising the charge from the current Rs.100 to Rs.500. Additionally, the stamp duty on share capital has been escalated from Rs.50 lakh to Rs.1 crore.
The ordinance was introduced on Monday following approval from the state cabinet, chaired by Chief Minister Eknath Shinde, during a meeting held on September 30. The revenue department indicated that these amendments could potentially augment stamp duty and registration revenue by nearly Rs.2,000 crore.
Key Amendments and Implications
The amendments outlined in the ordinance focus on simplifying the structure of stamp duty charges across various articles in Schedule I of the Maharashtra Stamp Act. The modifications include:
- Affidavits: The minimum stamp duty for affidavits executed before government or semi-government bodies will now be set at Rs.500.
- Share Capital: The stamp duty on share capital will be increased significantly, with the new threshold set at Rs.1 crore.
- Partnership Instruments: The minimum stamp duty for partnership agreements has been raised to Rs.500, with a maximum of Rs.50,000 applicable.
- Dissolution of Partnerships: The fee for dissolving a partnership will also now incur a minimum charge of Rs.500.
In addition, Articles 52 and 58 have been revised, raising the stamp duty from ₹200 to ₹500, in line with the general increase.
Rationale Behind the Increase
According to the revenue department, stamp duty and registration are among the primary sources of revenue mobilization for the state, second only to the State Goods and Services Tax (SGST). In the fiscal year 2023-24, the state government generated ₹40,000 crore through stamp duty and registration alone.
Rajesh Kumar, additional chief secretary of the State Revenue Department, emphasized the need for these amendments to simplify the levy of stamp duty while enhancing government revenue. He stated, “The government of Maharashtra is satisfied that circumstances exist which render it necessary for immediate action to amend the Maharashtra Stamp Act, as the house of the State Legislature is not in session.”
This legislative change mirrors similar adjustments made in Karnataka, highlighting a trend among states to increase stamp duties as a means of bolstering fiscal health.
Conclusion
The ordinance, which took effect immediately upon its release, marks a significant shift in Maharashtra’s approach to stamp duty and registration fees. As the state looks to maximize revenue in a challenging economic landscape, stakeholders will need to adapt to these new financial obligations associated with legal and business documentation.
