10 December 2013
How much stamp duty is to be paid on share subscription agreement in maharashtra? is it treated as conveyance as per Bomabay stamp act??
25 July 2025
Regarding **stamp duty on Share Subscription Agreement in Maharashtra**:
* Yes, **share subscription agreements are generally treated as instruments of transfer or conveyance** under the **Maharashtra Stamp Act**. * The **stamp duty on such agreements is typically calculated as a percentage of the amount involved in the subscription (i.e., the consideration for shares subscribed).**
### Stamp Duty Rate:
* Under the **Bombay Stamp Act, 1958**, the stamp duty on **share transfer/conveyance instruments** is generally around **0.5% (half percent) of the market value or consideration amount**, subject to a minimum amount fixed by the state. * For share subscription agreements, courts and the department often treat them similarly to share transfer deeds, hence attracting the same stamp duty.
### Is it treated as conveyance?
* Yes, the Maharashtra Stamp Act considers such agreements as conveyance or transfer instruments. * This means **stamp duty must be paid before or at the time of execution** of the agreement.
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### Practical points:
* Stamp duty is usually paid by affixing **stamp papers of appropriate value** or through **e-stamping**. * In case of dispute or demand by the department, **stamp duty on the agreement is usually payable based on the subscribed amount or market value of shares allotted.** * Non-payment or short payment can lead to penalties.
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If you want, I can help you calculate the exact stamp duty based on your subscription amount or guide on the payment procedure. Would you like that?
CAclubindia
