Stamp duty on transfer of shares
This query is : Resolved
19 November 2012
Hello,
can anyone help with the calculation of stamp duty in case of transfer of shares for a private unlisted company
can anyone help with the calculation of stamp duty in case of transfer of shares for a private unlisted company
20 November 2012
Hi
Stamp duty for transfer of shares is 25 paise for every Rs. 100 or part thereof of the value of shares as per Notification No. SO 130(E), dated 28-01-2004 issued by the Ministry of Finance, Department of Revenue, New Delhi.
No duty shall be chargeable in respect of any instrument executed by or on behalf of or in favour of the Government in cases where but for this exemption, the Government would be liable to pay the duty chargeable in respect of such instrument.
Stamp duty for transfer of shares is 25 paise for every Rs. 100 or part thereof of the value of shares as per Notification No. SO 130(E), dated 28-01-2004 issued by the Ministry of Finance, Department of Revenue, New Delhi.
No duty shall be chargeable in respect of any instrument executed by or on behalf of or in favour of the Government in cases where but for this exemption, the Government would be liable to pay the duty chargeable in respect of such instrument.
20 November 2012
Determination of valuation of shares for affixing stamps on the transfer deed
In case shares are not quoted, the value of the shares for the purpose of stamp means the price that the shares would fetch at the time of transfer or consideration agreed, whichever is higher. [Union of India v Kulu Valley Transport Ltd. (1958) 28 Comp Cas 29 (Punj)].
In case if the shares are listed on stock exchange, the valuation will be determined on the basis of the quotations available on the stock exchange on the date of execution of transfer deed or the consideration paid which ever is higher.
However, no transfer duty is applicable for transfer of shares in case of shares are in D-mat form.
Determination of valuation of shares for affixing stamps on the transfer deed
In case shares are not quoted, the value of the shares for the purpose of stamp means the price that the shares would fetch at the time of transfer or consideration agreed, whichever is higher. [Union of India v Kulu Valley Transport Ltd. (1958) 28 Comp Cas 29 (Punj)].
In case if the shares are listed on stock exchange, the valuation will be determined on the basis of the quotations available on the stock exchange on the date of execution of transfer deed or the consideration paid which ever is higher.
However, no transfer duty is applicable for transfer of shares in case of shares are in D-mat form.
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