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stamp duty on share transfer

DIPAK AGARWAL (Service) (554 Points)

07 January 2009

what is the percent at which one should affix the share transfer stamps on the sale value of shares (in case of sale of shares physically).

I heard from some where that it is 0.25% at present which was earlier 0.50% but i am not sure?

pl. clarify someone & if any such notification are there pl.mail me at dipakaga @ gmail.com.

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CS Arpita Rajpurohit (Company Secretary) (1111 Points)
Replied 07 January 2009

The share transfer deed should be ‘duly stamped’. Presently, the stamp duty payable is @ 25 Ps per Rs 100 of consideration (and not on basis of face value of shares). [As per Article 62 of Schedule I to Indian Stamp Act, the stamp duty payable on transfer is 75 Paise per Rs 100 or part thereof of 'value of shares'. The stamp duty has been reduced to 25 Ps per Rs 100 w.e.f. 1-3-2004, vide notification No. S.O. 130(E) dated 28-1-2004. Earlier, upto 29-2-04, it was 50 Ps per Rs 100 or part thereof, vide notification No. SO 198(E) dated 16.3.1976]. There is no stamp duty on transfer of shares or debentures in a depository scheme.

As per section 21, the duty has to be calculated on the basis of market price prevalent on date of instrument and not on the face value of shares - UOI v. Kulu Valley Transport Ltd. - (1958) 28 Comp. Cas. 29. Note that only adhesive stamps marked as 'Share Transfer' are permitted. Thus, other ordinary adhesive stamps (usually termed as 'revenue stamps') cannot be used for share transfer. (Rule 17 of Stamp Rules).

1 Like

(Guest)

yes arpita you are right

srilakshmi (ca final) (369 Points)
Replied 07 January 2009

in a.p stamp duty on shares is 0.30p per Rs.100

CS Arpita Rajpurohit (Company Secretary) (1111 Points)
Replied 07 January 2009

Originally posted by :srilakshmi
"	in a.p stamp duty on shares is 0.30p per Rs.100	"

plz quote some notification in this regard bcoz as far as i know, stamp duty on share transfer is same all over india .i.e. 25 paise per rs. 100.

D Kumar (HR Analyst) (30 Points)
Replied 08 May 2009

Dear All,

Please help me out, from where I shall get one share transfer deed. If anybody of you has the soft copy then mail me at dhiren.ray @ rediffmail.com

And what is the use of Form-7B?( share transfer form). Are both Form-7B and share transfer deed used for same purpose.

Thanks & Regards

Dhiren Ray

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 08 May 2009

Dear Dhiren,

Let me tell you soft copy of Share Transfer deed is of no use. Date Stamping of Share Transfer deed before use is a mandatory & statutory pre-condition.

Yes, Form-7B and Share Transfer deed is one and the same thing.

Best Regards

D Kumar (HR Analyst) (30 Points)
Replied 08 May 2009

Ohh! Thanks Mr. Ankur for the information.

May I ask you what would be the stamp fee for transfer of 800 shares( at face value of Rs. 10/- each). I belive it would be Rs. 20/-.

Thanks & Regards,

Dhiren

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17848 Points)
Replied 08 May 2009

Mr. Dhiren,

Stamp duty does not depends on the face value of the shares it depends on the selling value of the shares. Stamp duly payable @ 25 paise per Rs. 100. So it depends on the selling value

So, please also specify the selling price of the shares.

D Kumar (HR Analyst) (30 Points)
Replied 08 May 2009

Dear Mr. Srivastava,

The selling value of shares is Rs. 8000/-.

Also let me know, is the sale deed need to be filed at ROC.

Thanks & Regards,

Dhiren

Rashima Bhai (Company Secretary) (30 Points)
Replied 08 May 2009

Dhiren

You have to affix stamp of Rs 20/-on transfer deed.No need to file sale deed to ROC.

Regards

Rashima

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17848 Points)
Replied 08 May 2009

Dear Mr. Dhiren,

No, there is no need to deposit it at ROC.

Yes, you are right. For Selling Value of Rs.8,000/- stamp would be Rs.20/-.

1 Like

D Kumar (HR Analyst) (30 Points)
Replied 08 May 2009

Thank you both of you Rashima & Ankur!

Abhishek kumar agarwal (Chartered Accountant) (48 Points)
Replied 12 May 2009

Originally posted by :DIPAK AGARWAL
"	what is the percent at which one should affix the share transfer stamps on the sale value of shares (in case of sale of shares physically). I heard from some where that it is 0.25% at present which was earlier 0.50% but i am not sure? pl. clarify someone & if any such notification are there pl.mail me at dipakaga @ gmail.com.	"