Chennai: The Tamilnadu government has announced stamp duty exemption and reduction of Registration Fee to MSMEs taking into account the liquidity crunch faced by them during the Covid-19 pandemic.
Chief Minister Edappadi K Palaniswami granted the exemption following representations received from various MSME Association.
An official release said during the visit of the Chief Minister to various districts, several MSME Associations had requested a waiver or reduction of payment of stamp duty and registration charges on MoD due to the severe economic crisis and the liquidity crunch faced by the MSMEs in view of the Covid-19 containment measures.
They had expressed difficulties faced at the time of registration of MoD while availing loans under various Government schemes.
As per the direction of the Chief Minister, both the Commercial Taxes and Registration and Micro, Small and Medium Enterprises (MSME) Department and Commercial Taxes and Registration Department studied the issue in detail and orders granting exemption from payment of Stamp duty in respect of registration of agreement relating to Deposit of Title Deeds executed for securing loans availed from banks and financial institutions by MSMEs under the AatmaNirbhar Bharat Scheme for the period upto 31 March, as per the directions of the Chief Minister.
The Government also reduced the Registration fee to 0.1 per cent from one per cent in respect of registration of agreement relating to Deposit of Title Deeds on loans and additional loans granted by the banks and financial institutions to MSMEs.
The release said under the Centre’s Emergency Credit Line Guarantee Scheme (ECLGS), already around 3,09,312 accounts have been disbursed loans for an amount of Rs.11,538.69 crores in the State.
The eligible accounts of MSMEs would be benefitted till the schemes cease to exist under AatmaNirbhar package.
In the meanwhile, the Union Government also extended the scheme of ECLGS upto 31 March next year. In respect of reduction of registration charges, MSMEs would be benefitted every time while availing loans and additional loans.
Prior to this order, the Commercial Taxes and Registration Department had already issued an order extending the timeline for registration of MoD from four months to eight months without penalty till 31 March next year for the benefit of MSMEs.