Franking of share certificates

Dear members,

What is franking of share certificates?

Is it mandatory? How is it done?

I hv no idea so pls elaborate on this topic.

Thanks

Replies (5)

It is general practice to pay stamp duty on share certificate by affixing adhesive revenue stamp on it. But recently Collector of Stamp, Delhi has issued showcause notice to several companies to pay stamp duty on share certificates. When checked with the concerned authorities at Collector of Stamp, Samnath Marg, New Delhi, they have confirmed that since revenue stamp is not a valid instrument for payment of stamp duty. Therefore, all the previous transactions where revewnue stamp is affixed as consideration, becomes invalid. All such companies have to pay penalty and apply for condonation of delay in payment of stamp duty.

 

WAT IS THIS? HOW TO PAY STAMP DUTY ON SHARE CERTIFICATES???

Origin
   Collector of Stamp, Samnath Marg, New Delhi, have confirmed that since revenue stamp is not a valid instrument for payment of stamp duty. Therefore, all the previous transactions where revewnue stamp is affixed as consideration, becomes invalid. All such companies have to pay penalty and apply for condonation of delay in payment of stamp duty.

 

 

 

Hi,

 

Revenue stamp is the appropriate way to pay stamp duty on issue of shares. There is nothing wrong in it. Pls cross check again with the authorities ?

 

Regards, Neha

Thanks neha. But r u sure on this???

I hv heard that no revenue stamps is affixed on share certificates now.

What is franking? How can it be done?

According to

 

THE RAJASTHAN STAMP ACT, 1998

 

Section 2 (xii) says 

 

 

(xii) "duly stamped" as applied to an instrument, means that the instrument bears an adhesive or impressed stamp of not less than the proper Amount and that such stamp has been affixed or used in accordance with law for the time being in force in the state;
 
 
 
(xxxvi) "Stamp" means any mark, seal or endorsement by any agency or person duly authorized by the Inspector General of Stamps, and includes an adhesive or impressed stamp, for the purposes of duty chargeable under this Act."
 
 

THE RAJASTHAN STAMP ACT is applicable in my case. Above were the relevant provision of THE RAJASTHAN STAMP ACT. You pls check for the respective stamp act applicable in your case.

 

Regards,

Neha

 Is Revenue stamp is the appropriate way to pay stamp duty on issue of shares. ?

 

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 01 October 2026
Articled Assistant

KPSN & Associates LLP

Chennai

CA Inter

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details