Karnataka Stamp Duty on Llp Agreement

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  • Feb 1, 2022
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If you are planning to start a limited liability partnership (LLP) in Karnataka, it is important to be aware of the state`s stamp duty on LLP agreements. Stamp duty is essentially a tax that is levied by the government on certain documents, including LLP agreements, to make them legally valid.

In Karnataka, the stamp duty on an LLP agreement depends on the amount of capital that is contributed by the partners. Here is a breakdown of the stamp duty rates according to the capital contribution:

- For a capital contribution of up to Rs. 1 lakh, the stamp duty is Rs. 500.

- For a capital contribution of more than Rs. 1 lakh but up to Rs. 5 lakhs, the stamp duty is 0.3% of the capital contribution.

- For a capital contribution of more than Rs. 5 lakhs but up to Rs. 10 lakhs, the stamp duty is 0.5% of the capital contribution.

- For a capital contribution of more than Rs. 10 lakhs but up to Rs. 50 lakhs, the stamp duty is 0.75% of the capital contribution.

- For a capital contribution of more than Rs. 50 lakhs, the stamp duty is 1% of the capital contribution.

It is important to note that the stamp duty must be paid within 30 days of signing the LLP agreement. Failure to pay the stamp duty can lead to penalties and legal issues in the future.

To pay the stamp duty, you can either purchase physical stamp papers from authorized vendors or use the e-stamping facility provided by the Karnataka government. E-stamping is a convenient and hassle-free option that allows you to generate stamp papers electronically and pay the stamp duty online.

In addition to the stamp duty, you may also need to pay other fees and charges related to the registration of your LLP in Karnataka. These include registration fees, incorporation fees, and annual filing fees.

Overall, understanding the stamp duty on LLP agreements in Karnataka is an important aspect of starting an LLP in the state. By paying the stamp duty on time and following the necessary procedures, you can ensure that your LLP is legally valid and compliant with the state`s regulations.

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