Stamp duty on transfer of Shares
This query is : Resolved
CA.L.D.Goyal
(Querist)
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.
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.
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)
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
(Expert)
20 November 2009
No doubt at all. Agree with sir...
It is @ 25 Ps per Rs 100 of consideration.
It is @ 25 Ps per Rs 100 of consideration.
CA.L.D.Goyal
(Querist)
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.
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.
11 September 2010
Since the sellers are different person's, separate transfer deed is required.
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