Stamp Duty

Save Share

This query is : Resolved

satyanarayana (Querist)

06 February 2010 Hi All,

This is Satyanarayana.P i have a query regarding Stamp Duty

1.When we have to Pay Stamp duty on shares?

A. At the time of Issue Of Shares? or
B. At the time of Transfer of Shares?

Because somewhere it is saying that there is no stamp duty on issue of shares, the stamp duty attracts only when the shares transfered. which is Right?

satyanarayana.P
9705104900
pinnaka.financial@gmail.com

Rasesh

Rasesh (Expert)

08 February 2010 Stamp duty is payable on both the actions.

While stamp duty on issue of share is governed by the respective state stamp act, the stamp duty on transfer of shares is as per the Indian Stamp Act.

satyanarayana

satyanarayana (Querist)

08 February 2010 Dear sir,

Please tell me that how to pay stamp duty on this

some people attesting only Rs.1/- Revenue stamp on the instrument is this ok? or

is there any procedure for payment of Stamp duty on issue of shares.

Rasesh

Rasesh (Expert)

17 February 2010 Payment of stamp duty on issuance of shares is governed by the respective state law. In Gujarat it is 1 Re. for every Rs. 1000/- of market value. It may be different for your state. The simplest way of paying the duty is to print a Specimen Share Certificate and pay the duty by way of electronic franking which is done by most banks. Keep this stamped certificate as the conclusive proof of your payment of stamp duty.

Each share certificate issued for this series should mention that consolidated stamp duty has been pade on ____.

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