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.

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 https://www.setindiabiz.com/learning/llp-agreement-its-content-and-draft-format/

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.

 

No.StateLaw of Stamp DutyCapital – 50KCapital – 1 LakhCapital – 5 LakhCapital – 10 Lakh
1Andhra Pradesh100 for capital 5000,
Rs. 500 for other cases
500500500500
2Arunachal PradeshCapital is upto Rs. 1000 – Rs. 30
Otther cases Rs. 100
100100100100
3AssamCapital is upto Rs. 1000 – Then Rs. 20
Above Rs. 1000 – Rs. 100
100100100100
4BiharIf capital disclosed then 2.5%
Maximum – Rs. 10,000
If Capital Not Disclosed -Rs. 10,000
125025001000010000
5ChhattisgarhCapital is upto 50K Then Rs. 1,000
Capital more than 50K Then 2%
Maximum = Rs. 5000
1000200050005000
6Delhi1% of Capital
Min -Rs. 200
Max -Rs. 5000
500100050005000
7GoaCapital is less than 50K Then Rs. 500
Every addition cap of 50K – Add Rs. 500
Maximum – Rs. 5000
500100050005000
8GujaratRs. 1 for every 100 capital or part thereof
Max- Rs. 10,000
5001000500010000
9Haryana10001000100010001000
10Himachal Pradesh100100100100100
11Jammu & Kashmir JammuCapital upto 50K – Rs. 1000
Capital Exceeding 50K – 2%
100020001000020000
12JharkhandIf capital disclosed then 2.5%
Maximum – Rs. 10,000
If Capital Not Disclosed -Rs. 10,000
125025001000010000
13KarnatakaRs. 20002000200020002000
14KeralaFlat Rs. 5000 at all Capital Levels5000500050005000
15Madhya PradeshMinimum Rs. 2000
Maximum Rs. 10,000
Standard Rate @ 2% of Capital
200020001000010000
16MaharashtraCapital upto 50000 – Rs. 500
Exceeding 50,000 – 1% (Max 15,000)
5001000500010000
17Manipur100100100100100
18Meghalaya100100100100100
19Mizoram100100100100100
20Nagaland100100100100100
21OrissaCapital is upto Rs. 500 – Rs. 50
Other Cases – Rs.2000
50200020002000
22PunjabCapital is upto Rs. 500 – Rs. 4
Other Cases – Rs.1000
1000100010001000
23RajasthanFor Every Rs. 50000 – Rs. 2000/-
Maximum Rs. 10,000
200040001000010000
24Sikkim100100100100
25Tamil NaduCapital upto Rs. 500 – Rs. 50/-
In any other case – Rs. 3000/-
3000300030003000
26TelanganaRs. 100/- for capital upto Rs. 5000/-
Rs. 300/- In all other cases
300300300300
27Tripura100100100100100
28Uttar Pradesh750750750750750
29Uttarakhand750750750750750
30West Bengal150150150150150

 

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.