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.

Stamp Duty On LLP Agreement

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.

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. 30 Otther cases Rs. 100 100 100 100 100
3. Assam Capital is upto Rs. 1000 - Then Rs. 20 Above Rs. 1000 - Rs. 100 100 100 100 100
4. Bihar If capital disclosed then 2.5% Maximum - Rs. 10,000 If Capital Not Disclosed -Rs. 10,000 2500 5000 5000 5000
5. Chhattisgarh Capital is upto 50K Then Rs. 1,000 Capital more than 50K Then 2% Maximum = Rs. 5000 2000 2000-5000 5000 5000
6. Delhi 1% of Capital Min -Rs. 200 Max -Rs. 5000 1000 2000 - 5000 5000 5000
7. Goa Capital is less than 50K Then Rs. 500 Every addition cap of 50K - Add Rs. 500 Maximum - Rs. 5000 150 150 150 150
8. Gujarat Rs. 1 for every 100 capital or part thereof Max- 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 Jammu Capital upto 50K - Rs. 1000 Capital Exceeding 50K - 2% 100 100 100 100
12. Jharkhand If capital disclosed then 2.5% Maximum - Rs. 10,000 If 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 1000 1000 1000 1000
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.