The Delhi government on Monday cleared the proposal to withdraw a 1937 notification wherein subsidiaries seeking merger with their parent company are exempt from stamp duty. The Delhi cabinet led by chief minister Sheila Dikshit has decided to withdraw a notification dated January 16, 1937 issued under the Indian Stamp Act, 1899, which envisages exemption from stamp duty on instruments evidencing transfer of property between companies limited by shares as defined in the Indian Companies Act.
The state will now approach the Union government to consider the withdrawal of the earlier notification. In view of the rising trend of mergers of companies to benefit from the policies for big loans and other benefits, a cash-strapped Delhi government sees revenue generation possibilities here.
