Stamp duty on shares transfer
This query is : Resolved
12 April 2017
who will bear stamp duty on share transfer of private company? and how?
12 April 2017
The Section 29 of Stamp Act says that in the absence of an agreement to the contrary the expenses of providing the proper stamp shall be borne, in the case of transfer of shares of an incorporated company or other body corporate, by the persons executing the document.
In the case of transfer of shares of a company it is the seller who is responsible for payment of stamp duty (Union of India vs. Kulu ValleyTransport Ltd. (1958) 28 Comp. cas. 29).Transferor has to bear the stamp duty
As per Section 17 of the Stamp Act any instrument chargeable with duty, should be stamped before the instrument is signed. Thus it indicates that transferor has to bear the stamp duty. But in practice some times the transferee who affixes the share transfer stamps on the instrument at the time of lodging the same for registration of transfer in his favour.
In the case of transfer of shares of a company it is the seller who is responsible for payment of stamp duty (Union of India vs. Kulu ValleyTransport Ltd. (1958) 28 Comp. cas. 29).Transferor has to bear the stamp duty
As per Section 17 of the Stamp Act any instrument chargeable with duty, should be stamped before the instrument is signed. Thus it indicates that transferor has to bear the stamp duty. But in practice some times the transferee who affixes the share transfer stamps on the instrument at the time of lodging the same for registration of transfer in his favour.
Message likes :
1 times
12 April 2017
if transferee pay stamp duty on shares transfer then there is no violation of any compliance? that transferee may pay stamp duty?
13 April 2017
YES Transferee may pay stamp duty
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Liable to deduct tds and 44ADA
- Sale of Equity shares for Purchase of Residential Property
- ECO SUPPLY REPORTIONG IN GSTR-1
- Non issue of e way bill
- ASISSE return under the provisions of the Collection of Statistics Act, 2008 (7 of 2009)
- Payment to foreign customer
- Gstr7 vs Gstr3b 2026
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
