stamp duty

This query is : Resolved

Harini (Querist)
Follow

02 April 2009 what is the stamp duty to be paid on share certificates issued ( not transfer) in case of pvt ltd co in the state of karnataka

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
Follow

02 April 2009
On the value of the shares 0.5% .

Ie if value is 1000 then Rs.5 has to be paid.

Harini

Harini (Querist)
Follow

02 April 2009 Thanks sir, but per the Karnataka Stamp Act 1957 schedule Article 16, it says Rs.1 for every Rs.1000 in value of shares. Please clarify.

http://karigr.org/actsrules/stampacts/scheduleksa57.htm

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
Follow

25 July 2025 Good question! Here’s the clarification on stamp duty for **share certificates issued (not transferred)** in Karnataka:

---

### Stamp Duty on Share Certificates in Karnataka

* **According to the Karnataka Stamp Act, 1957, Schedule Article 16**, the duty is:

* **Rs. 1 for every Rs. 1000 (or part thereof) of the nominal value of shares**.

* This means if shares are issued with a nominal value of Rs. 1000, stamp duty payable is Rs. 1 (not 0.5%).

* The 0.5% you mentioned might be confusion with other states or different stamp duty provisions, but as per Karnataka Stamp Act, it’s a **fixed Rs.1 per Rs.1000 nominal value** slab.

---

### Example:

* Nominal value of shares issued = Rs. 5000
* Stamp duty = Rs. 5 (Rs. 1 × 5)

---

**Summary:**
For a private limited company in Karnataka, stamp duty on share certificates issued is Rs.1 for every Rs.1000 nominal value or part thereof, **not 0.5%**.

If you want, I can help you with the relevant circular or references to Karnataka Stamp Act!

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