aliya bhat
asked over 2 years ago
Whether any stamp duty is payable on conversion of company into LLP?
veeru
answered over 2 years ago
In case of conversion of a company into Limited Liability partnership, there is no transfer of Assets and Liabilities. All movable and immovable properties of the company automatically vests in the Limited Liability Partnership. No instrument of transfer is required to be executed and hence no stamp duty is required to be paid.
ARJUN PRATAP SINGH
answered over 2 years ago
Dear Friend, as far as your query is concerned that Whether any stamp duty is payable on conversion of company into LLP? Let me informed that As per our understanding , in case of conversion of company into LLP, there is no transfer of assets and liabilities and moreover , there is no requirement of executing any instrument for giving effect to the vesting of ownership and therefore , there would not be any stamp duty incidence. Hope answer was helpful to you Regards, Arjun Pratap Singh
Pushkala Santhanam
answered over 2 years ago
**Stamp duty** is a tax that is levied on legal recognition of documents. Stamp duty is payable under **Section 3 of the Indian Stamp Act, 1899**. The levy of stamp duty is a state subject and thus the rates of stamp duty vary from state to state. The Centre levies stamp duty on specified instruments and also fixes the rates for these instruments. In case of **conversion of a company into Limited Liability partnership**, there is no transfer of Assets and Liabilities. All movable and immovable properties of the company automatically vests in the Limited Liability Partnership. No instrument of transfer is required to be executed and hence no stamp duty is required to be paid.
Aarti Vadnerkar
answered over 2 years ago
No Stamp Duty on conversion into LLP The Government may exempt partnership firms and limited companies from paying stamp duty while converting into limited liability partnerships (LLPs), a way of doing business that is favoured globally for its flexibility. The idea is to adopt a provision similar to Section 394 of the Companies Act, which allows high courts to waive off stamp duty while approving amalgamations and restructuring of companies involving transfer of assets, the official said, requesting anonymity
