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Stamp duty on Physical Share Certificate

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Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2010 New Shares were issued to Shareholders of a private limited company almost 8-9 months back.. But no stamp duty has been paid on it till now. Is there any solution. Total Stamp Duty comes to around Rs. 3000/-

• Can we use any adhesive stamp to be affix on share certificate. Is it allowed as on today?
• Can we pay any Penalty? What is the Penalty rate(in Maharashtra-Mumbai)? Pls provide me a reference to your answer in the concerned Act. What is the Procedure for paying Penalty( Whether this Penalty amt be added to the actual Stamp Duty and thus the share certificate be franked with the total amount??????)

• What is Adjudication? What is the procedure of Adjudication? Should we go for that?

Pls Help

Thks in advance

Rasesh

Rasesh (Expert)
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06 April 2010 Since the Company is a private limited company and that the stamp duty amount is not large, you may pay consolidated stamp duty on one specimen share certificate. Though it would be perfectly legal, you may have an excuse that though delayed, the payment has been made.

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