LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Regarding stamp paper

25 September 2012

Sir,

Is it mandatory to purchase a stamp paper for Form 20 (Commencement of Business in case of a Pub Co.) after the Company being incorporated. Can it not of a date before incorporation and after availability of the name of the Company. I think the only motto of a stamp paper is to pay stamp duty to the State.

I availed a name of a Pub Co on 12.09.2012. It was incorporated on 19.09.2012. I had purchased a stamp paper in the name of the Company on 15.09.2012 to attach with the Form 20. What will be the status of the Form? Can it be acceptible or not?

Reply
Follow
Share

7 Replies

Smriti Dhawan (Company Secretary ) (347 Points)
Replied 25 September 2012

Dear Mr. Prabhat

The date of purchase of stamp paper should be on or after 19.09.2012. how can you purchase stamp paper in name of Company when it was not in existance. Stamp Paper availed on 15.09.2012 is not valid as on that date Company was not formed.

CS Prabhat K Nayak (CS) (29 Points)
Replied 25 September 2012

But, I had already availed the name of the Company. And in my view the main object of attaching a stamp paper is only to pay the stamp duty to the State. Again it is not much beforehand.

(Guest)

I think there are no issues. Stamp paper of 15th Sept will serve the purpose.

Regards

Neha

Smriti Dhawan (Company Secretary ) (347 Points)
Replied 25 September 2012

Mr. Prabhat , you are right that the motive is to pay stamp duty but an entity which is not in existance how can you pay stamp duty on its name, availing name does not mean that company has been incorporated. In my view Stamp paper can only be purcahsed in name of Company which is in existance.

Hemanshu Rohitkumar Bakshi (Credit Controller) (197 Points)
Replied 25 September 2012

Yes...I agree with Smriti

Chirag J Ved (student) (65 Points)
Replied 27 September 2012

Yes...I agree with Smriti

the company has not born on 15 so it can not buy stamp paper. i think

Shabnam Siddiqui (Company Secretary) (152 Points)
Replied 27 September 2012

In my opinion stamp paper would do, as the company ( by its promoter) can rectify the acts done before its incorporation. Further it is not being used for any contract or any obligation for which existance of the company matters.

It could have been better if you had taken the stamp paper in its promoter's name. Stamp paper here we are using to give a declaration of compliances which can be in the name of director.

Or better you check it with filing the form 20 in which date of stamp paper has to be filled and if not accepted, it will show the error.

Expert opinion is solicited.