Stamp dut y on issue of sharecertificates

Save Share

This query is : Resolved

Pankaj (Querist)
Follow

29 March 2011 Dear All,

If company issues a duplicate share certificate, whether stamp duty is payble in following cases:
1. When duplicate share certificate is issued in liu of:
a. Share certificate lost / misplaced
b. Sharecertificate measfisened / torned
c. Consolidated or sub-divided

If stamp duty is payble, how much it shold be paid?

Rasesh

Rasesh (Expert)
Follow

30 March 2011 In all the above cases, full stamp duty is payable on the share certificates depending on the state (stamp duty law) in which it is issued.

Pankaj

Pankaj (Querist)
Follow

01 April 2011 Sir,

Thanks a lot for your opinion.

Can you please guide on the stamp duty payable in state of Maharashtra?

One opinion received is that stamp duty payable only in case of lost share certificate and not in other cases as the origional share certificate (cancelled) is in the custody of company for atleast 3 years.

And whether maximum stamp duty payble on duplicate share certificate is ristricted to Rs. 100/-

Can you please comment on above sir...

Thanking You

Rasesh

Rasesh (Expert)
Follow

01 April 2011 Article 17 of the Bombay Stamp Act (as applicable to State of Maharashtra)states that the stamp duty is One rupee for every one thousand rupees or a part thereof,
of the value of the shares, scrip
or stock. There is no reference for consolidated / split share certificates.

Article 27: Counterpart-or-Duplicate of any instrument chargeable with duty and in respect of which the proper stamp duty has been paid refers that the stamp duty would be as applicable on the original, subject to a maximum of rupees one
hundred.

Pankaj

Pankaj (Querist)
Follow

05 April 2011 Thanks a lot for the kind guidance sir..

Best Regards,
Pankaj Goyal

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now