21 March 2013
In case of private or public company, applicable stamp duty is to be paid electronically.
However in case of Delhi Note: The Hon'ble High Court of Delhi at New Delhi has held in the matter of S E Investments Limited Vs Union of India and Others [W.P. (c) 2393/2010 and CM Appl.4794/2011] that there is no provision in the Delhi Stamp Act for payment of stamp duty on "increased authorised capital" . Payment of stamp duty for increase of authorised capital being paid with filing of eForm No.5 with respect to State of National Capital Territory of Delhi is made optional.
The Ministry of Corporate Affairs vide its Notification.No .F.14(15)/LA-2011/Cons2law/110 Dated 23.07.2012, amended Schedule IA of Indian Stamp Act, 1899 (2 of 1899) as in force in the National Capital Territory of Delhi. Article 10 for clauses (a) and (b) of Schedule IA of Indian Stamp Act, 1899 has been substituted as:-
10. ARTICLE OF ASSOCIATION OF A COMPANY
Description of Instrument Proper Stamp Duty
(a) When the Authorised Share Capital of the Company does not exceed Rs. One Lakh (0.15% of the Authorised Share Capital) (b) In other cases; (0.15% of the Authorised Share Capital with a monetary ceiling of Rs. 25 Lakh) (c) When the Authorised Share Capital is increased (0.15% of the increase in Authorised Share Capital with a monetary ceiling of Rs. 25 lakhs)
Therefore, it is hereby informed you that stamp duty on increased Authorised Share Capital are not optional in the National Capital Territory of Delhi and we have to pay Stamp Duty on increased authorized share capital at the rate of 0.15% of the increase Authorised Share Capital but with a monetary ceiling of Rs. 25 Lakhs.
Moreover, Registrar of Companies, Delhi & Haryana should take necessary steps to amend Form 5 for Change in Authorised Share Capital to remove the option of optional payment of stamp duty in Form 5.
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