Stamp duty on transmission of share

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sumitra (Querist)

20 March 2012 Dear Sir/Madam

Do we need to pay stamp duty, in case of Transmission of Shares if the consideration value is 0? If required, then what amount of stamp duty is required to be paid.

Ajay Mishra

Ajay Mishra (Expert)

20 March 2012 Hi

No need to pay stamp duty if consideration is NIL, because the stamp duty on transfer is depend on the consideration value.

Regards

Ajay Mishra

Ajay Mishra (Expert)

20 March 2012 Hi

Requirement of documents for transmission of shares:

Where title to shares comes to vest in another person by operation of law, it is not necessary to execute and submit transfer deed. A simple application to the company by a legal representative along with the following necessary evidences is sufficient:—

(i) Certified copy of death certificate;
(ii) Succession certificate;
(iii) Probate;
(iv) Specimen signature of the successor.

However, requirement of these certificates is not essential and depends on various circumstances of the case. Where a succession certificate has been granted in respect of shares, the company cannot insist on the production of probate or letters of administration; the certificate affords full indemnity to company. [Thenappa Chettiar v Indian Overseas Bank Ltd. (1943) 13 Comp Cas 202 (Mad)].

Since the transmission is by operation of law, neither consideration for transfer nor stamp duty is required on instruments for transmission.

Regards

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