Stamp duty on share subscription agreement
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
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.
---
### 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.
---
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?
* 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.
---
### 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.
---
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?
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