Stamp Duty Payable on Llp Agreement in Delhi

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When it comes to starting an LLP in Delhi, one of the key considerations is the stamp duty payable on the LLP agreement. An LLP agreement is a legal document that sets out the terms and conditions of the partnership between the partners.

Stamp duty is a tax that is levied on legal documents such as agreements, deeds, and certificates. In Delhi, stamp duty is payable on the LLP agreement as per the provisions of the Indian Stamp Act, 1899.

The amount of stamp duty payable on the LLP agreement in Delhi depends on the capital contribution made by each partner. The stamp duty is calculated as a percentage of the total capital contribution made by all the partners combined.

The stamp duty rates for LLP agreement in Delhi are as follows:

– If the total capital contribution made by all partners is less than or equal to Rs. 1 lakh, the stamp duty payable is Rs. 50.

– If the total capital contribution made by all partners is between Rs. 1 lakh and Rs. 5 lakhs, the stamp duty payable is Rs. 500.

– If the total capital contribution made by all partners is between Rs. 5 lakhs and Rs. 10 lakhs, the stamp duty payable is Rs. 1,000.

– If the total capital contribution made by all partners is between Rs. 10 lakhs and Rs. 50 lakhs, the stamp duty payable is Rs. 2,000.

– If the total capital contribution made by all partners is above Rs. 50 lakhs, the stamp duty payable is Rs. 5,000.

It is important to note that the LLP agreement must be stamped within 30 days of its execution. Failure to do so will result in penalties and fines. Additionally, an unstamped LLP agreement will not be admissible as evidence in a court of law.

To pay stamp duty on the LLP agreement in Delhi, the LLP agreement must be first drafted and executed by all partners, and then submitted to the nearest authorized stamp vendor or the e-stamp facility. The stamp vendor will calculate the stamp duty payable, and the LLP agreement will be stamped accordingly.

In conclusion, stamp duty payable on LLP agreement in Delhi must be properly understood and complied with to avoid penalties and fines. It is advisable to seek professional advice from a chartered accountant or a lawyer to ensure compliance with all legal requirements.