Maharashtra SEZ players to be freed from stamp duty, registration fee for 10 years

SANJAY JOG
Posted online: Tuesday, February 20, 2007 at 0000 hours IST

MUMBAI, FEB 19: Maharashtra, which has received BoA (Board of Approval)
nod for setting up 72 special economic zones (SEZs), has decided to give
SEZ developers, co-developers and units operating in these zones stamp
duty exemption for 10 years, under the Bombay Stamp Duty Act, 1958. They
will also be exempted from paying registration fee, under the
Registration Act, 1908, for 10 years. The state Cabinet at its meeting
held last week gave its approval to the move.

• SEZ developers were reluctant to enter into land deals for want of a
fresh notification
• The initial proposal was for a 25-years exemption, but the state
Cabinet shot it down

State government sources told FE, “The decision was necessitated as the
transfer of title of land in several SEZs was put on hold in the absence
of the state government's decision in this regard. Although exemption in
stamp duty was in place since 2001, the notification in this regard
lapsed in March 2006 and thus SEZ developers were reluctant to enter
into land deals for want of fresh notification. With the state Cabinet
approval, a fresh notification will be issued whereby exemption will be
given for 10 years. Although the initial proposal was for 25 years'
exemption, the state Cabinet shot it down and reduced it to 10 years.”

The exemption in respect of stamp duty and registration fee will be
available with effect from the date of issue of letter of approval for
setting up the SEZ, under sub-section 10 of section 3 of the Central Act.
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