Stamp duty on share certificates
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
24 February 2012
Hello Everyone,
I am working as an Accountant in a Pvt.Ltd. Co. Kindly advise me on the following issues related to Share Certificates.
1)We have registered office of our co. in Mumbai but the Board Meetings are held at Chhattisgarh. So can we issue share certificates from Chhattisgarh? Also which state stamp duty will be applicable on the share certificates?
2)We have alloted 2,00,000 shares as on 31-03-2011 (Face value - Rs.10/- and Premium- Rs.90/-). So can we issue the share certificates now (i.e. before 31-03-2012). Also how much stamp duty will be applicable?
3)Whether we can affix revenue stamps on share certificates instead of paying the stamp duty?
Thanks....
I am working as an Accountant in a Pvt.Ltd. Co. Kindly advise me on the following issues related to Share Certificates.
1)We have registered office of our co. in Mumbai but the Board Meetings are held at Chhattisgarh. So can we issue share certificates from Chhattisgarh? Also which state stamp duty will be applicable on the share certificates?
2)We have alloted 2,00,000 shares as on 31-03-2011 (Face value - Rs.10/- and Premium- Rs.90/-). So can we issue the share certificates now (i.e. before 31-03-2012). Also how much stamp duty will be applicable?
3)Whether we can affix revenue stamps on share certificates instead of paying the stamp duty?
Thanks....
11 March 2012
Hi
1. If your company’s Board Meeting is held on Chhattisgarh, then the company has option to pay stamp duty either on the state where the registered office or situated or where the Board Meeting is held for allotment of shares and where share certificate is issued.
2. As per section 113 , the share certificate will be issued within 3 months from the date of allotment. If share certificate is not issued within the period of three months and if the company has not obtained the order of extension of period from the CLB (now Tribunal) for issuance of share certificates, the period of limitation commences for enforcement of rights for issuance of shares and consequently on completion of three months from allotment of shares by the company period of limitation for recovery of the amount shall commence under article 47 of the Limitation Act, 1963. [Gurdino Jiwatram Kukreja v Eastern Mining and Allied Industries Ltd. (2004) 121 Comp Cas 762 (Gau)].
3. Please check, whether the state stamp Act of Chhattisgarh or Mumbai permit to affix revenue stamp on share certificate.
Regards
Hi
1. If your company’s Board Meeting is held on Chhattisgarh, then the company has option to pay stamp duty either on the state where the registered office or situated or where the Board Meeting is held for allotment of shares and where share certificate is issued.
2. As per section 113 , the share certificate will be issued within 3 months from the date of allotment. If share certificate is not issued within the period of three months and if the company has not obtained the order of extension of period from the CLB (now Tribunal) for issuance of share certificates, the period of limitation commences for enforcement of rights for issuance of shares and consequently on completion of three months from allotment of shares by the company period of limitation for recovery of the amount shall commence under article 47 of the Limitation Act, 1963. [Gurdino Jiwatram Kukreja v Eastern Mining and Allied Industries Ltd. (2004) 121 Comp Cas 762 (Gau)].
3. Please check, whether the state stamp Act of Chhattisgarh or Mumbai permit to affix revenue stamp on share certificate.
Regards
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