Whether Stamp Duty is required to be paid on first issue of shares by private limited company to its promoters? If yes, whether stamp is affixed on share certificates itself or is required to be paid to some authority?
pooja (Student CA Final ) (39 Points)
18 April 2015Whether Stamp Duty is required to be paid on first issue of shares by private limited company to its promoters? If yes, whether stamp is affixed on share certificates itself or is required to be paid to some authority?
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 20 April 2015
Stamp duty is payable on issue of share certificates whether issued to subscribers or others. It is governed by respective State law. Mode of payment of stamp duty is also given in the respective State law. Such mode could be either affixing stamps on share certificates or payment by way of franking or even payment of consolidated stamp duty etc.
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