By CHANDRASHEKAR G
There is a good news for companies which are getting amalgamated or demerged as the Stamps and Registration department has put a maximum cap of Rs. 25 crore towards stamp duty.
Briefing the media persons after the cabinet meeting chaired by the Chief Minister Basavaraj Bommai, Law, Parliamentary affairs minister J. Madhuswamy said that cabinet has taken a decision to fix a maximum cap of Rs. 25 crore as stamp duty for amalgamation or demerged of any company. Now, the stamp duty applicable is on part with the Maharashtra, he said.
The stamp duty payable by the companies going for merger or demerger was way too high in the state. As a result of this, the companies were appearing or approaching the stamps and registration department of the neighbouring states, he said.
In an attempt to avoid companies going to other states this decision has been taken. States going to other states for registration purpose means the state would lose the revenue, he announced.
According to sources in stamps and registration department, normally, the stamps and registration department was collecting stamp duty of 3% on immovable property or 1% on the aggregate share value of the company, which ever, is higher.
Now, the state cabinet has approved a cap of Rs. 25 crore for registration. With this, the department can prevent companies going to neighbouring states.
However, a merger or amalgamation between two companies had to be earlier sanctioned by a high court under the Companies Act, 1956, and is now to be approved by the National Company Law Tribunal (NCLT) under the Companies Act, 2013. Only those companies which are approved by the NCLT or other authority will be eligible for merger or demerger.