Stamp duty on increase of authorize share capital

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PRASAD CHAOJI (Querist)

26 February 2013 A company want to increase its authorized share capital and to save the very impact of stamp duty on such increase. Presently, the registered office of the company is situated in the State of Maharashtra. As the UP Stamps act does not provide for any rate of stamp duty on Increase of Authorized Share Capital, the company decides to forward petitions before Regional Director Mumbai for shifting of RO to Noida, UP. In the meantime, means before RD's approval, the company holds EGOM in the State of Maharashtra for Increase of Auth. Share Capital and passed required special resolution. Now, after RD's approval/order for shifting of RO to UP, the company shifted its RO to Noida, UP and filed Form 5 for increase of Auth. Capital with ROC, Uttar Pradesh. Can ROC Mumbai or Collector of Stamps, Maharashtra demand stamp duty on Form 5 merely on the grounds that the place of passing special resolutions was Maharashtra? Does place of execution of resolutions hold any relevance in this case?? Please advice.

Ajay Mishra

Ajay Mishra (Expert)

26 February 2013 Hi

The stamp duty will be based on the date of EGM at which the authorised capital increase and at that time what is the registered office of the company.

If at the time of passing of resolution for increase of authoriesd capital the registered office is in Maharashtra, then you will pay stamp duty as per Maharashtra Act and UP stamp Act, will not apply.

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