stamp duty
This query is : Resolved
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
(Expert)
02 April 2009
On the value of the shares 0.5% .
Ie if value is 1000 then Rs.5 has to be paid.
On the value of the shares 0.5% .
Ie if value is 1000 then Rs.5 has to be paid.
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
https://karigr.org/actsrules/stampacts/scheduleksa57.htm
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!
---
### 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!
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