Stamp duty on transfer of Shares

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CA.L.D.Goyal

CA.L.D.Goyal (Querist)
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19 November 2009 Dear Experts
Pls tell me Currently applicable Stamp duty on transfer of Shares.

Is any limit that any number of shares transfer on single deed if buyer is same.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 November 2009 The share transfer deed should be duly stamped. Presently, the stamp duty payable is @ 25 Ps per Rs 100 of consideration (and not on basis of face value of shares). [As per Article 62 of Schedule I to Indian Stamp Act, the stamp duty payable on transfer is 75 Paise per Rs 100 or part thereof of 'value of shares'. The stamp duty has been reduced to 25 Ps per Rs 100 w.e.f. 1-3-2004, vide notification No. S.O. 130(E) dated 28-1-2004. Earlier, upto 29-2-04, it was 50 Ps per Rs 100 or part thereof, vide notification No. SO 198(E) dated 16.3.1976]. There is no stamp duty on transfer of shares or debentures in a depository scheme.
As per section 21, the duty has to be calculated on the basis of market price prevalent on date of instrument and not on the face value of shares - UOI v. Kulu Valley Transport Ltd. - (1958) 28 Comp. Cas. 29. Note that only adhesive stamps marked as 'Share Transfer' are permitted. Thus, other ordinary adhesive stamps (usually termed as 'revenue stamps') cannot be used for share transfer. (Rule 17 of Stamp Rules)

Ankur Garg

Ankur Garg (Expert)
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20 November 2009 No doubt at all. Agree with sir...

It is @ 25 Ps per Rs 100 of consideration.

CA.L.D.Goyal

CA.L.D.Goyal (Querist)
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20 November 2009 Dear Sir
Firstly thnx
Sir pls tell me that there is any limit that any number of shares can be transferred on a single transfer deed if the buyer is same but sellers are differnet persons.