Big news_no stamp duty on authorized capital increase delhi

Others 3081 views 22 replies

 

Dear All,

 

 

 

Please take note of the matter below:

 

The Delhi High Court has recently held that a company is not required to pay the stamp duty on the increased amount of its authorised share capital in Delhi.

 

A bench headed by justice S Muralidhar said this while allowing the plea of S E Investments, which challenged the direction of the Registrar of Companies (ROC) seeking stamp duty on increased amount in authorised share capital.

 

In the absence of a specific provision that permits the levy of stamp duty on the increase in authorised share capital, it would not be open to the Respondents (ROC) to insist upon S E Investments having to pay stamp duty for the increased authorised share capital, the court said.

 

The court, however, made it clear that the company would not be entitled to refund of the amount which it had already paid as stamp duty. This will however not enable the petitioner to claim refund of any stamp duty paid earlier by it for increase in authorised share capital, the court added.

 

Brief Details about the judgement


S E Investments, a public limited company, was incorporated on March 5, 1992 with an authorised share capital of.Rs. 3.5 crore. In 2010, it increased its capital to.Rs. 125 crore. The company sought the opinion of ROC and contended that there is no provision in the Delhi Stamp Act to pay the duty on increase in the authorised share capital. However, the ROC directed the company to pay Rs. 25 lakh as stamp duty, prompting S E Investments to move the court.

 

It is directed that the ROC will now proceed to accept the petitioner's Form 5 and record the increased authorised share capital without insisting on the petitioner paying stamp duty thereon, the court added.

 

Please find below herewith the copy of the said judgment for your reference.

 

RG


Attached File : 555105 839842 case no stamp duty on increase of auth capital in delhi.pdf downloaded: 334 times
Replies (22)

 

Dear All,

 

 

With reference to the post above, I am glad to inform you that MCA has issued a notification dated 23rd September, 2011 modifying E-Form 5, in view of the judgment of Hon'ble Delhi High Court in the matter of S.E. Investments Limited. 

 

The said notification is to waive off the requirement of payment of stamp duty in Delhi on increase in authorised share capital.

 

Please find below the said notification.

 

RG

 

Thanks for info sir....

Richank sir lot of thanks for sharing knowledgeable post

thanks for the info. sir                   

Thanxxxxx...

Thank you all for reading the post.

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Latest listing agreements from nse

thankls u sir once again valuable info. from u

Thanks fr the info..........

what about on AoA? is stamp duty payable on it?

thanks for sharing the information sir

Thanks a lot richang...........!!!!!!!!

@ ! @

SSDN

sir,thnx a lot for keeping us abreast with the latest developments in the field of company law...

Originally posted by : aditya

sir,thnx a lot for keeping us abreast with the latest developments in the field of company law...

Well-written reply, Dear Aditya. I agree. RG has been relentless in his endeavour to share information that would be indispensible to any serious student here.

And it's clear that you are enjoying your stint as Captain, Dear Richank.

Thanks for sharing.

Thanks for the information Sir .


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