Stamp Duty on Share Transfer

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 April 2011 Dear All,

There is a private limited company registred in mumbai, maharahstra. this company's share holders wants to transfer the others. now he stamp duty payable is Rs. 1 for Every 1000 of sales consideration. all the shareholder will now be issued share certificates and form 7B will be excuted

my question is

1. on what we have to pay stamp duty i.e we have to affix stamps on form 7B or share transfer certificates or both??

2. can we pay the stamp duty by franking the same

udit sharma

udit sharma (Expert)
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22 April 2011 In my opinion, what u have quoted is the stamp duty payable in case of issue of new Share Certificates.

To the best of my knowledge, in case of transfer of shares, stamp duty payable is .25% of the total consideration.

1. You have to affix the stamps on Form 7B and not on the Original Share Certificate.

2. No.

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Querist : Anonymous

Querist : Anonymous (Querist)

22 April 2011 Sir Please reconfirm that stamp duty cannot be paid by franking. in one of the posts it was written it can be paid by franking