Stamp Duty Payable on Llp Agreement in Gujarat

Stamp Duty Payable on LLP Agreement in Gujarat

When setting up a Limited Liability Partnership (LLP) in Gujarat, it is important to understand the stamp duty payable on LLP agreement. This is a legal document that outlines the rights and liabilities of the partners, the capital contributions, profit and loss sharing ratios, and other important details regarding the operation of the business.

Stamp duty is a tax payable on various types of legal documents, including agreements, deeds, and bonds. In Gujarat, the stamp duty payable on LLP agreement is governed by the Gujarat Stamp Act, 1958. The stamp duty payable is based on the capital contributions made by the partners and the state of Gujarat has fixed rates for the same.

The stamp duty payable on LLP agreement in Gujarat is calculated as follows:

1. Capital Contribution up to Rs. 1,00,000 – Rs. 1000

2. Capital Contribution between Rs. 1,00,001 to Rs. 5,00,000 – Rs. 2000

3. Capital Contribution between Rs. 5,00,001 to Rs. 10,00,000 – Rs. 5000

4. Capital Contribution above Rs. 10,00,000 – Rs. 10,000

It is important to note that the LLP agreement must be stamped within 30 days of execution. Failure to do so may result in penalties and fines.

In addition to the above, LLPs must also pay a registration fee and processing fees. The registration fee is based on the capital contributions made by the partners and the processing fees are fixed at Rs. 2000.

Registration fee payable by LLPs in Gujarat is as follows:

1. Capital Contribution up to Rs. 1,00,000 – Rs. 500

2. Capital Contribution between Rs. 1,00,001 to Rs. 5,00,000 – Rs. 2000

3. Capital Contribution between Rs. 5,00,001 to Rs. 10,00,000 – Rs. 4000

4. Capital Contribution above Rs. 10,00,000 – Rs. 5000

In conclusion, the stamp duty payable on LLP agreement in Gujarat is a crucial aspect to be understood by anyone who wishes to set up an LLP. LLPs must ensure that they pay the correct stamp duty, registration fees, and processing fees to avoid penalties and fines. It is always recommended to seek professional advice while dealing with legal documents and taxation matters.

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