Stamp duty for LLP agreement to state govt

This query is : Resolved

CA. Naveen Jain (Querist)
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21 April 2021 Sir,
One of my client has made llp agreement on Rs. 100 stamp one year back. Now recently form 3 submitted with Rs. 1000 stamp paper for llp agreement as capital of the firm is Rs. 100000.
But I got the query from ROC as "1% STAMP DUTY SHOULD BE PAID TO STATE GOVT. I.E. 1,000/- SHOULD BE PAID"
Please guide how to paid this stamp duty as already Rs. 1000 stamp attached for Delhi state.

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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11 July 2024 It seems there is confusion regarding the stamp duty payable on LLP agreements. Here’s a clarification and guidance on how to address the query from ROC:

1. **Stamp Duty on LLP Agreement:**
- LLP agreements are required to be executed on stamp paper, and the amount of stamp duty varies from state to state in India.
- In Delhi, the stamp duty for an LLP agreement is generally calculated based on the capital contribution of the LLP partners.
- Previously, you mentioned that the LLP agreement was initially executed on Rs. 100 stamp paper, but now it has been updated with Rs. 1000 stamp paper reflecting a capital contribution of Rs. 1,00,000.

2. **Query from ROC:**
- The ROC (Registrar of Companies) has raised a query stating that 1% stamp duty should be paid to the state government, which amounts to Rs. 1,000.
- This query suggests that the ROC might be seeking clarification or confirmation that the correct stamp duty has been paid as per the LLP Act and rules of the Delhi state government.

3. **Action Steps:**
- **Verification of Stamp Duty Paid:** Verify the stamp duty calculation and payment made for the LLP agreement. Ensure that the stamp duty paid is in accordance with the LLP Act and the stamp duty rates applicable in Delhi for the capital contribution mentioned.

- **Consultation with a Professional:** It might be beneficial to consult with a professional who is knowledgeable about stamp duty regulations in Delhi. They can review the LLP agreement, stamp duty payment, and the query from ROC to provide specific guidance.

- **Responding to ROC:** Prepare a response to the ROC query. Explain the stamp duty calculation based on the capital contribution of Rs. 1,00,000 and provide supporting documents such as the updated LLP agreement on Rs. 1000 stamp paper. Clearly state that the stamp duty has been paid as per applicable regulations.

4. **Next Steps:**
- Once you have verified and clarified the stamp duty payment, submit the response to the ROC within the specified timeline.
- Keep records of all communications, payments, and documents related to the LLP agreement and stamp duty for future reference and compliance audits.

By following these steps and ensuring compliance with stamp duty regulations, you can effectively address the query from ROC regarding the LLP agreement stamp duty payment. If needed, seek assistance from a professional to ensure accurate compliance with legal requirements.