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Bhumika singh (Querist)
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10 January 2025 A govt company wholly owned subsidiary of another govt company allot equity shares ( unlisted shares)
under right issue to parent company situated in Mumbai
Is govt company ( subsidiary company) required to pay stamp duty in Mumbai pursuant to allotment under right issue
Or is it exempt from stamp duty
Note : subsidiary govt company is wholly owned subsidiary of parent govt company

Because exemption is not clearly provided anywhere and as per recent amendment centre has provided uniform stamp rate on issuance/ transfer of shares w.e.f.2020

Urgent resolution required

Please help in this matter .

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
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12 August 2025 Pay stamp duty @ 0.005% of the issue price/value via prescribed mechanism (RTA or otherwise).

Keep documentation to support that it's a rights issue to the existing shareholder.

Do not assume exemption unless the shares are issued to Government itself (and even then, confirm with local stamp office).

If large value involved, consult the Collector of Stamps (Mumbai) and seek clarification in writing.

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