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Discussion > Corporate Law >

stamp duty on share transfer

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Service


[ Scorecard : 554]
Posted On 07 January 2009 at 15:08 Report Abuse

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


[ Scorecard : 1072]
Posted On 07 January 2009 at 15:12

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).

 





Member (Account Deleted)


[ Scorecard : 2909]
Posted On 07 January 2009 at 15:19

yes arpita you are right




srilakshmi
ca final


[ Scorecard : 369]
Posted On 07 January 2009 at 16:45

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




CS Arpita Rajpurohit
Company Secretary


[ Scorecard : 1072]
Posted On 07 January 2009 at 18:56

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


[ Scorecard : 30]
Posted On 08 May 2009 at 11:15

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


[ Scorecard : 103573]
Posted On 08 May 2009 at 11:35

 

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


[ Scorecard : 30]
Posted On 08 May 2009 at 11:58

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


[ Scorecard : 14921]
Posted On 08 May 2009 at 12:42

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


[ Scorecard : 30]
Posted On 08 May 2009 at 12:56

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



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