The government of Maharashtra recently revised the stamp duty on LLP agreement, which has created quite a stir among businesses and investors in the state. The new stamp duty rates are set to come into effect from 1st April 2021 and will affect all LLP agreements executed in Maharashtra.

The revised stamp duty rates are designed to boost the revenue of the Maharashtra government, which has seen a significant decline in income due to the ongoing COVID-19 pandemic. The government hopes to generate an additional revenue of around Rs. 1500 crore per year through this measure.

Under the new stamp duty rates, the stamp duty on LLP agreements has been increased from 0.1% to 0.3% of the total contribution made by partners to the LLP. The maximum stamp duty payable on an LLP agreement has also been increased from Rs. 1 lakh to Rs. 5 lakh.

The new stamp duty rates have raised concerns among businesses and investors who feel that the increase in rates will make it more expensive to set up an LLP in Maharashtra. This, in turn, may discourage new businesses from starting up or investing in the state.

However, it is important to note that the revised stamp duty rates are a part of the government`s effort to boost revenue and improve the state`s economic situation. The government is also taking other measures to promote investment in the state, such as providing incentives and reducing bureaucratic procedures.

It is recommended that businesses and investors consult with their legal advisors to understand the implications of the new stamp duty rates on their LLP agreements. By doing so, they can make informed decisions and take appropriate measures to mitigate any adverse effects of the revised rates.

In conclusion, the revised stamp duty rates on LLP agreements in Maharashtra may have a significant impact on businesses and investors in the state. However, it is important to understand that the government`s move is aimed at boosting revenue and improving the state`s economic situation. Businesses and investors should consult with their legal advisors to understand the implications of the new rates and take appropriate measures to mitigate any adverse effects.