stamp duty on capital repayment to a partner in case of reconstitution of partnership

Q: what is the stamp duty on capital repayment to a partner in case of reconstitution of partnership firm in andhra pradesh

Cma Partha Saradhi,

29th December 2014

Other in Hyderabad

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Stamp duty implications when a partner retires: Stamp duty payable is specified in Schedule 1-A to the Stamp Act. The link is http://registration.ap.gov.in/CitizenServices/ACT/Stamp/StampFees.pdf

Department argues that the stamp duty is attaracted under two sub headings in the above schedule:
Article No. 41 relating to Instrument of Partnership
Article No.46 relating to conveyance

In your case under article No.41 : Rs.500/-
Under Article No.46: 3% or 1.5% on the retiring partner share in property (Property value at market rate)

The above clarification is given by the department. But they are not registering the deeds as they await for clear cut instructions from higher authorities.

Chakka Thiruvayu Kumar,

12th February 2015

Comment

Hello. While on the topic I will also add info about dissolution or transfer of the partnership. So if the deed is transferrred to a different person than the original one who started the firm, the stamp duty is about 5 percent of the market value of the property distributed.

Ashish Sharma, Mumbai

11th February 2015

Comment

Hi, since you specifically asked for Stamp Duty in Andra Pradesh, i wanted to clear your misconceptions, and tell you that the Stamp Act 1899, is applicable all over India and each state does not have separate laws with regards to Stamp duty. Apart from that the stamp duty is Rs 500 in case of reconstruction.

Shilpa Vydyula, Hyderabad

10th January 2015

Comment

Hey, well i'm happy to provide with some information about the stamp duty paid in case of reconstruction of partnership. Apart from the case mentioned in the comment above mine, the stamp duty in case of reconstruction is Rs 500.

Kamat Reddy, Hyderabad

9th January 2015

Comment

Hello, in case of reconstitution, where immovable property contributed as share by a partner or partners remains with the company at the time of outgoing in whatever manner by such partner or partners on reconstitution of such partnership, then the stamp duty is 5% on the market value or the immovable property remaining with the firm.

Siddarth Mamanthur, Hyderabad

9th January 2015

Comment

Hi, stamp duty on capital repayment to a partner in case of reconstruction of partnership firm in Andra Pradesh is something you can only trust the expert advice on. Since i have been studying tax laws, i wanted to tell you that the can find the revelent information from The Indian Stamp Act, 1899.

Raghav Karra, Hyderabad

8th January 2015

Comment

1. Capital can not be repaid in cash because it attracts violation of sec. 269T and 269SS of IT ACt.

2. If any immovable property is given to retiring partner or reconstitution of partnership firm , then standard stamp duty rates on transfer of immovable property in any state are applicable.

Praneeth Kumar, Hyderabad

2nd January 2015

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