Tamil Nadu regards M&A property deals as conveyance, imposes stamp duty

State joins many others that already have this provision; move will increase transaction cost of acquisition considerably, say sources

The registration department of Tamil Nadu has issued a circular to clarify that the transfer of property taking place under the Companies Act, through the scheme of arrangements for merger or demerger of the companies would be classified as the conveyance, on which stamp duty is applicable. Tamil Nadu has joined many other States that already have this provision. The move would increase the transaction cost of acquisition considerably, say sources.

In a circular issued recently, the Inspector General of Registration, Chennai, said that the Companies Act, 2013 provides for formulating schemes for merger, amalgamation or reconstruction of companies and the