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Payment of stamp duty on allotment of equity shares in demat

Ranjit Singh (Company Secretary) (92 Points)

25 December 2013

We have allotted 12,00,000 Equity shares in Demat form. the company is listed one and it is registered with RoC, Gujarat. Kindly suggest at what rate & How stamp Duty on such allotment is to be paid to the Goverenment of Gujarat. Allotment is made at Board Meeting held in Gujarat.

thanks,

Ranjit

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4 Replies

swapnil dabke (senior executive) (320 Points)
Replied 02 January 2014

Stamp duty is payable on instruments i.e. share certificates. In this case, since no share certificates. There is no requirement of paying stamp duty.

Ranjit Singh (Company Secretary) (92 Points)
Replied 02 January 2014

Sir ji, as per 'NSDL' FAQ, it is clear that we have to pay stamp duty whether shares are in physical or Demat form. so please check again. Here what are the modes available for its payment.

thanks,

Ranjit

Shaktî Dwîvedî (4 Points)
Replied 24 July 2017

Yes , we have to pay stamp duty on allotment of share through depositories in demat form as specified u/s 8A of the India Stamp Act, 1899, as allotment letter is an instrument and such instrument is liable to stamp duty.

Shaktî Dwîvedî (4 Points)
Replied 24 July 2017

Yes , we have to pay stamp duty on allotment of share through depositories in demat form as specified u/s 8A of the India Stamp Act, 1899, as allotment letter is an instrument and such instrument is liable to stamp duty.

now what is procedure to pay such duty,, please leave comment