Transfer of Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2010 My Company's Registered office is in Delhi and the company wants to conduct its Board Meeting in Haryana as the director of the Company presume that rate of Stamp Duty in Haryana on transfer of Shares is Nil. So Kindly help me out whether such action is correct or not.

udit sharma

udit sharma (Expert)
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22 December 2010 Hi...

There is no statutory restriction imposed by the Companies Act, 1956 as to holding of a Board Meeting. BM can be held at a place other than the registered office of the Company. For the purpose of reducing the stamp duty to be paid on Share Certificates, u can convene the BM in the state of Haryana but it is definitely going to raise some suspicion as to why the BM has not been held in Delhi or has been specially held in the state of Haryana if no BM has been held in Haryana till date.

God Bless

Udit Sharma

Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2010 thank u sir, so is it confirm that rate of stamp duty on transfer of share in haryana is nil not .25%of consideration as in Delhi.

Querist : Anonymous

Querist : Anonymous (Querist)

22 December 2010 thank u sir, so is it confirm that rate of stamp duty on transfer of share in haryana is nil not .25%of consideration as in Delhi.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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02 August 2025 Stamp duty on transfer of shares varies from state to state in India, as per the respective **Stamp Act** of each state.

### Key points regarding stamp duty on share transfer:

* **Delhi:** Typically charges **0.25% of the consideration** or market value, whichever is higher.
* **Haryana:** Historically, Haryana had **nil or very minimal stamp duty** on share transfer, but you should confirm the latest position from the Haryana Stamp Act or the state's official notifications, as rates may change.

### So:

* It is **correct** that conducting a Board Meeting in Haryana might help in availing the **stamp duty benefit applicable in Haryana** if the share transfer documents are executed there.
* However, companies should be mindful of **legal compliance and bona fide reasons** for holding meetings outside the registered office to avoid scrutiny by tax or regulatory authorities.
* Also, the **place of execution of share transfer documents** matters for stamp duty, and not just the location of Board Meeting.

### Suggestion:

* Please verify the **latest stamp duty rates on share transfers** under Haryana Stamp Act through official state government or stamp duty websites.
* Consult a local stamp duty expert or lawyer for confirmation before proceeding.

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