Stamp duty

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Querist : Anonymous

Querist : Anonymous (Querist)

14 July 2016 Hello everyone,

Ques- Is stamp duty payable (other than those affixed on transfer deed) on issue of share certificate on transfer of shares of the Company?

Thanks

Pratik Shah

Pratik Shah (Expert)
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15 July 2016 In case of transfer, company never issues share certificates. Company just need to endorse existing share certificate. Hence, no need to pay stamp duty (other than stamp duty on Transfer.Deed)

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Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2016 But if shares are transferred in part (Eg: 300 shares are transferred out of 500)?

Also Sec 56 (4) of the Companies Act, 2013 says Every company shall, unless prohibited by any provision of law or any order of Court, Tribunal or other authority, deliver the certificates of all securities allotted, transferred or transmitted-

(c) within a period of one month from the date of receipt by the company of the
instrument of transfer under sub-section (1) or, as the case may be, of the intimation of
transmission under sub-section (2), in the case of a transfer or transmission of securities;

Pratik Shah

Pratik Shah (Expert)
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16 July 2016 If shares are to be transferred in part, then Shareholder first need to request for split of Share Certificate. In lieu of this Certificate, Company issues two certificates as per desired number. However, in this case also, Company do not require to pay stamp duty because stamp duty is already paid on original share certificate.

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