stamp duty

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Harini (Querist)
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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)
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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)
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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.

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

Aashok Kumar Sharma online

Aashok Kumar Sharma online

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

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### 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.

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### Example:

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

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**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!

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