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Stamp Duty on Partnership or LLP Agreement of Several States

The instant article is written to serve as reference material on the Stamp Duty Rates on the Partnership Agreements and the LLP Agreements. It is noteworthy that the partnership deed/agreement and the LLP agreements are subject to the same rate of the stamp duty in India. State governments prescribe the stamp duty rates; hence it varies across several states in India, and an attempt is made to gather the stamp duty rates on the partnership or LLP agreements at one place.
Disclaimer: The law being a dynamic subject that changes frequently, the setindiabiz or the author does not take any responsibility of the updates and request the reader to co-relate with the respective state legislation on LLP Agreement Stamp Duty.

Table of Contents

The need and purpose of LLP Agreement

The LLP agreement is a written document, that is regarded as the constitution of the LLP and defines the relationship between the partners of the LLP per se and their relationship with the LLP. The LLP agreement should be printed on plain paper, and the stamp duty on the LLP agreement must be paid by way of purchasing the non-judicial stamp paper of appropriate value. Please refer to the below section to know the stamp duty rate in your state.
As per section 23 of the LLP Act, it is mandatory to file the LLP Agreement with the ROC within 30 days of its incorporation in FORM-3. The roc will object to the registration of LLP agreement if the same is not executed on correct stamp duty. Notary attestation of the LLP agreement is also desirable. The LLP agreement is a crucial document, and you should be very careful while calculating the stamp duty on the LLP agreement, as any short payment of the stamp duty would make the LLP agreement an unenforceable in the court of law. The purpose to define the role of partners, their mutual rights and obligations apart from the capital and profit-sharing ratio.
The LLP Agreement can be further amended or completely changed with the consent of all the partners of the LLP. In case of an amendment of the partnership deed or the LLP Agreement, you don’t have to pay the stamp duty as prescribed for the creation of the firm or LLP, but regular stamp duty which is leviable on a general agreement. However, kindly see the relevant stamp Act of the particular state.

Contents of the LLP Agreement & Draft Format

To know more about the Legality of the LLP Agreement, its Content and to download the format of a template LLP Agreement, please visit LLP Agreement

The Stamp Duty on LLP Agreement

As discussed in the above paragraphs, the LLP must pay the appropriate stamp duty on the LLP Agreement or the Partnership Deed. The manner of payment of stamp duty is offline, and the stamp duty liability is discharged by purchasing the non-judicial stamp paper from the designated stamp vendor.
S.No State Law of Stamp Duty Less Than 1 Lakh Rs. 1 Lakh To Rs. 5 Lakh Rs. 5 Lakh To Rs. 10 Lakh Above Rs. 10 Lakh
1.
Andhra Pradesh
100 for capital 5000,Rs. 500 for other cases
500
500
500
500
2.
Arunachal Pradesh
Capital is upto Rs. 1000 – Rs. 30Otther cases Rs. 100
100
100
100
100
3.
Assam
Capital is upto Rs. 1000 – Then Rs. 20Above Rs. 1000 – Rs. 100
100
100
100
100
4.
Bihar
If capital disclosed then 2.5%Maximum – Rs. 10,000If Capital Not Disclosed -Rs. 10,000
2500
5,000
5,000
5,000
5.
Chhattisgarh
Capital is upto 50K Then Rs. 1,000Capital more than 50K Then 2%Maximum = Rs. 5000
2,000
2,000-5,000
5,000
5,000
6.
Delhi
1% of CapitalMin -Rs. 200Max -Rs. 5000
1,000
2000 – 5000
5000
5000
7.
Goa
Capital is less than 50K Then Rs. 500Every addition cap of 50K – Add Rs. 500Maximum – Rs. 5000
150
150
150
150
8.
Gujarat
Rs. 1 for every 100 capital or part thereofMax- Rs. 10,000
1000
2000-5000
6000-10000
10000
9.
Haryana
1000
1000
1000
1000
1000
10.
Himachal Pradesh
100
100
100
100
100
11.
Jammu & Kashmir
Capital upto 50K – Rs. 1000Capital Exceeding 50K – 2%
100
100
100
100
12.
Jharkhand
If capital disclosed then 2.5%Maximum – Rs. 10,000If Capital Not Disclosed -Rs. 10,000
2500
5000
5000
5000
13.
Karnataka
Rs. 2000
1000
1000
1000
2000
14.
Kerala
Flat Rs. 5000 at all Capital Levels
5000
5000
5000
5000
15.
Madhya Pradesh
Minimum Rs. 2000 Maximum Rs. 10,000 Standard Rate @ 2% of Capital
2000
2000-5000
5000
5000
16.
Maharashtra
Capital upto 50000 – Rs. 500 Exceeding 50,000 – 1% (Max 15,000)
1000
1% of Capital
1% of Capital
1% of Capital
17.
Manipur
100
100
100
100
100
18.
Meghalaya
100
100
100
100
100
19.
Mizoram
100
100
100
100
100
20.
Nagaland
100
100
100
100
100
21.
Orissa
Capital is upto Rs. 500 – Rs. 50 Other Cases – Rs.2000
200
200
200
200
22.
Punjab
Capital is upto Rs. 500 – Rs. 4 Other Cases – Rs.1000
1,000
1,000
1,000
1,000
23.
Rajasthan
For Every Rs. 50000 – Rs. 2000/-Maximum Rs. 10,000
500
500
500
500
24.
Sikkim
100
100
100
100
100
25.
Tamil Nadu
Capital upto Rs. 500 – Rs. 50/-In any other case – Rs. 3000/-
300
300
300
300
26.
Telangana
Rs. 100/- for capital upto Rs. 5000/-Rs. 300/- In all other cases
50
100
100
200
27.
Tripura
100
100
100
100
100
28.
Uttar Pradesh
750
750
750
750
750
29.
Uttarakhand
750
750
750
750
750
30.
West Bengal
150
150
150
150
150

Conclusion

Need Help: Well, as you might have noted that the stamp duty on the LLP agreement is not uniform and changes from state to state. Though mostly it is based on the Capital of LLP, however, few states impose a flat rate of stamp duty, such as Karnataka. You may consult us on the applicability of the stamp duty by sending an email at help@setindiabiz.com or chat with our support executives.
Conclusion: The LLP Agreement being a vital document, loses the legal validity if it is not executed on stamp paper of appropriate value or the stamp duty is inadequate. In the case of LLP filing of the LLP agreement in Form-3 is mandatory, and you should not miss it. We conclude this article and believe that the detailed discussion on the LLP agreement should be useful to you and request your feedback in the comment box.
The instant article is written to serve as reference material on the Stamp Duty Rates on the Partnership Agreements and the LLP Agreements. It is noteworthy that the partnership deed/agreement and the LLP agreements are subject to the same rate of the stamp duty in India. State governments prescribe the stamp duty rates; hence it varies across several states in India, and an attempt is made to gather the stamp duty rates on the partnership or LLP agreements at one place.
Disclaimer: The law being a dynamic subject that changes frequently, the setindiabiz or the author does not take any responsibility of the updates and request the reader to co-relate with the respective state legislation on LLP Agreement Stamp Duty.

About Setindiabiz

Setindiabiz is an organized team of experienced CA, CS, & Lawyers, duly supported by a pool of trained accountants & paralegal staff that provides quality & affordable compliance services to startups & small businesses in India. The views, statements and recommendations expressed in this article or post are only for the sole objective of providing information, and it does not constitute professional advice or recommendation of the company. Neither the author nor the company or its affiliates accepts any liability for any loss or damage arising from any information in this article or any actions taken in reliance thereon.

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