G.O Ms No. 177 Dated 20.11.2003

Stamp Duty - Reduction from 8% / 7% to 6% - Reduction of Transfer Duty from 5% to 2% - Notification Issued.

1. From the Inspector General of Registration letter No.44130/C5/2003, dt:15.9.2003.
2. From the Inspector General of Registration letter No.44130/C5/2003, dt:6.10.2003.

The Government of Tamil Nadu has, in the past two years, undertaken a number of measures to improve investment in Information Technology and Information Technology Enabled Services Sector, Service Industries in general and construction industry in particular. The State has emerged as the leading destination for investment, bringing in a number of associated developmental activities. The Government have been exploring other measures to enhance investment climate and usher in the foremost status for Tamil Nadu in all around Development.

2. At present 8% stamp duty on amount or market value setforth for conveyance of properties is levied in urban areas and 7% in rural areas. In addition, transfer duty at 5% is also levied, the proceeds of which is apportioned to the local bodies after due collection charges. The restructuring of stamp duty, and transfer duty levied on the conveyance of properties has been engaging the attention of Government to facilitate further growth in developmental opportunities.

3. The Tax Reforms Augmentation Committee, constituted in the year 2002 headed by Dr. Raja A. Chelliah has recommended the levy of a consolidated rate of stamp duty on conveyance for all areas at 9%. The Inspector General of Registration in the letter read above has sent proposals to the Government to reduce the present rate of stamp duty totally to 9% applicable throughout the State.

4. The Government after careful consideration of the above factors have decided to reduce the stamp duty to 6%, transfer duty to 2% and to retain the present rate of registration fee at 1% on conveyance in respect of all instruments chargeable with duty as a conveyance under Schedule-I to the Indian Stamp Act, 1899. The above rates will be applicable throughout the State with effect from 21.11.2003.

5. The Government also reduce the rates of duty leviable in respect of instruments listed in Notification II to eight percent.

6. Necessary orders will be issued by Rural Development Department and Municipal Administration and Water Supply Department for reduction of transfer duty from the existing rate of 5% to 2% for the areas under respective local bodies.

7. The Notifications appended to this order will be published in the Tamil Nadu Government Gazette Extraordinary dated:21.11.2003.

8. The Works Manager, Government Central Press, Chennai is requested to send to the Government ten copies of the Tamil Nadu Government Gazette in which the Notifications are published.

The Works Manager, Government Central Press, Chennai-79. (for publication of Notification in the Tamil Nadu Government Gazette)

The Senior Personal Assistant to Minister (Public Works, Prohibition, Excise and Revenue), Chennai-9.

In exercise of the powers conferred by clause (a) of sub-section (1) of section 9 of the Indian Stamp Act, 1899 (Central Act II of 1899), the Governor of Tamil Nadu hereby reduces the stamp duty in respect of all instruments chargeable with the duty as a conveyance under Schedule I to the said Act to six rupees for every Rs.100 or part thereof on the amount or market value as stated in the relevant Articles.

In exercise of the powers conferred by clause (a) of sub-section (1) of section 9 of the Indian Stamp Act, 1899 (Central Act II of 1899), the Governor of Tamil Nadu hereby reduces the stamp duty in respect of the following instruments to eight rupees for every Rs.100 or part thereof on the amount or market value as stated in the respective Articles under Schedule I to the said Act.

Sl.No. (1)	Instrument (2)	Article 3 (3)
1.	Agreement relating to construction of a house or building including Multi Unit House.	5(i)
2.	Dissolution involving partition of immovable properties of a firm among partners, who are not family members.	46(B)(i)
3.	Release of Benami Right	55(B)
4.	Release of right in favour of Co-owner	55(C)
5.	Release of right in favour of partner	55(D)(ii)
6.	Settlement in favour of non-family members	58(a)(ii)