CHENNAI: The Tamil Nadu government has granted exemption to Micro, Small and Medium Enterprises (MSMEs) under the Aatma Nirbhar Bharat Scheme from payment of stamp duty while registering agreements relating to Deposit of Title Deeds executed for securing loans from banks and financial institutions till March 31, 2021.
This comes after several MSME associations had represented to the Chief Minister for a waiver or reduction of payment of stamp duty and registration charges on Memorandum for Deposit of Title Deed due to the severe economic crisis and liquidity crunch as a result of COVID-19 containment measures.
The issue was studied in detail by both the Commercial Taxes and Registration and Micro, Small and Medium Enterprises Department following which the former issued orders on the directions of the Chief Minister, according to a release.
The government has also ordered the reduction of the registration fee to 0.1 percent from one percent with respect to registration of agreement relating to Deposit of Title Deeds on loans and additional loans granted by banks and financial institutions to Micro and Small Enterprises.
Under the Emergency Credit Line Guarantee Scheme (ECLGS) of the Union government, around 3,09,312 accounts have been disbursed loans for an amount of Rs 11,538.69 crore in the state already. The eligible accounts of MSMEs would be benefited till the schemes cease to exist under the Aatma Nirbhar Package.
Meanwhile, the Union government has also extended the scheme of Emergency Credit Line Guarantee Scheme (ECLGS) upto March 31, 2021. With respect of reduction of registration charges, Micro and Small Enterprises would be benefited every time while availing loans and additional loans.
Prior to this order, the Commercial Taxes and Registration Department had already issued an order for extending the timeline for registration of Memorandum for Deposit of Title Deed from four months to eight months without penalty till March 31, 2021. All these measures are stipulated to help the MSME units which are currently facing issues due to the COVID situation, the release added.