LETHARGY IN COMPLIANCE- TATA STEEL IS TO PAY A PENALTY OF RS 1.46 CRORES AS LATE STAMP DUTY FILING IN TATA –TINPLATE MERGER MOVE · Tata Steel Limited received an Adjudication Order imposing a penalty of ₹1,46,14,380/- for late filing of a stamp-duty application for merger.
· The penalty relates to the stamp duty payable for the amalgamation of The Tinplate Company of India Limited and Tata Steel Limited, sanctioned by the National Company Law Tribunal , Mumbai.
· The Collector of Stamps, Enforcement – I, Mumbai, Government of Maharashtra under Section 39 of the Maharashtra Stamp Act, 1958 issued the Order imposing a penalty of ₹1,46,14,380/- on Tata Steel.
· As per the Maharashtra Stamp Act, on an order of amalgamation wherein there is some immoveable property of the transferor present in the state, the stamp duty payable can be up to 5% of the total consideration for the amalgamation (aggregating both the cash paid as well as market value of shares exchanged).
· The penalty is towards the belated filing of stamp-duty application for necessary payment of stamp duty to the appropriate authority as per the provisions of Maharashtra Stamp Act, 1958
· There is a failure in compliance by Tata Steel Ltd to pay stamp duty on merger within the prescribed time and hence it has to pay a huge and heft penalty of Rs 1,46,14,380/-.
COMPLIANCE IS LESS COSTLIER THAN NON-COMPLIANCE
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