This fee is calculated based on the value of the property and is generally a percentage of the total amount payable. While the rate of stamp duty varies from state to state, the general basic principle underlying the levy remains the same. Stamp duty is considered a legal tax that must be paid in full during the conclusion of a transaction. While the buyer usually pays stamp duty, there are cases where the buyer and seller decide to distribute stamp duty in accordance with a previously signed contract. A shareholder pact usually registers the agreement of the parties on policy issues (for example. B business plans and dividend policy) and day-to-day practicalities (e.g. B, financing working capital requirements, protecting minority shareholders and resolving disputes). (Click here for a case study) According to a July 2020 report, the Tamil Nadu government should reduce stamp and registration fees for all leases over 12 months. This is one of the conditions set by the World Bank for the financing of the housing sector strengthening programme in Tamil Nadu. What is the benefit of a shareholder pact? The nature and details of the shareholders` pact would depend on the company`s constitutional documents, i.e. the MOA and the AOA. In addition, details of the share documents and details of the agreement between shareholders would be required. A complete list of the process and the various documents required can only be used when the full facts are known.

Currently, the MOA and the AOA would suffice for this. As a general rule, no stamp duty is due for this agreement if it only proves that the two founders have identical equity. Finally, the question of whether a tax should be paid or not depends on the terms agreed in the contract. Under the Indian Stamp Act of 1899, stamp duty must be paid as a measure to cover and track all transactions. Therefore, stamp duty works almost as evidence of the conclusion of the agreement and that it took place. It is a valid legal person in court as evidence in the event of a dispute. The last change to the Indian Stamp Act came in 2016 in the form of debt recovery from the 2016 Act. If you are buying a new property or selling an investment, then stamp duty is definitely something you need to know.

If you don`t know all the legitimacy regarding the stamp tax and its application, don`t worry, because we`ve covered you. Here`s a look at everything you need to know about stamp duty and in which you have to pay it. What is the difference between a license and a franchise agreement? This agreement becomes enforceable as soon as it is signed by all parties involved and will be printed on a non-judicial stamp document, which varies according to state law. Use this agreement if you are an investor interested in buying shares from a company. They represent a company interested in selling shares. As far as the duty of the state is concerned, it generally varies from state to state. Nevertheless, there is a general pattern that is followed. Let`s take a look, for example, at the stamp duty imposed by the Karnataka government. In addition to the above documents, the Karnataka government lifts stamp duty: the registration of the shareholder contract is a private contract that binds the person who invested in the company with management.