I have a question, please clarify me, its urgent
What is the effet, if the Board accepted the non-stamping transfer deed?(Un listed public company)
10 Replies
CA Ayush Agarwal
(Kolkata-Pune-Mumbai)
(27199 Points)
Replied 01 April 2010
Then Directors are Liable..............5% Duty shud b Paid...
Muruganandhan
(Trainee)
(35 Points)
Replied 01 April 2010
Can I have the sections or notes on this??
Thanks in advance.
Ankur Garg
(Company Secretary and Compliance Officer)
(114783 Points)
Replied 01 April 2010
Such approval of non stamped transfer deed would be null and void as the same is against the provision of section 108.
Transfer deed should be stamped as per section 108 before approving the transfer by the board.
Ankur Garg
(Company Secretary and Compliance Officer)
(114783 Points)
Replied 01 April 2010
Validity of unstamped/non-cancelled stamped on transfer deed
Section 108 requires that where share transfer form is delivered to the Board it should be duly stamped. It means stamp of adequate value should be affixed and cancelled on transfer deed.
However, no transfer duty is applicable for transfer of shares in case of shares is in D-mat form.
Value of share transfer stamps to be affixed on the transfer deed
Stamp duty for transfer of shares is 25 paise for every Rs. 100 or part thereof of the value of shares as per Notification No. SO 130(E), dated 28-01-2004 issued by the Ministry of Finance, Department of Revenue, New Delhi.
Ankur Garg
(Company Secretary and Compliance Officer)
(114783 Points)
Replied 01 April 2010
Validity of unstamped/non-cancelled stamped on transfer deed
Section 108 requires that where share transfer form is delivered to the Board it should be duly stamped. It means stamp of adequate value should be affixed and cancelled on transfer deed.
However, no transfer duty is applicable for transfer of shares in case of shares is in D-mat form.
Value of share transfer stamps to be affixed on the transfer deed
Stamp duty for transfer of shares is 25 paise for every Rs. 100 or part thereof of the value of shares as per Notification No. SO 130(E), dated 28-01-2004 issued by the Ministry of Finance, Department of Revenue, New Delhi.
Ankur Garg
(Company Secretary and Compliance Officer)
(114783 Points)
Replied 01 April 2010
Validity of unstamped/non-cancelled stamped on transfer deed
Section 108 requires that where share transfer form is delivered to the Board it should be duly stamped. It means stamp of adequate value should be affixed and cancelled on transfer deed.
However, no transfer duty is applicable for transfer of shares in case of shares is in D-mat form.
Value of share transfer stamps to be affixed on the transfer deed
Stamp duty for transfer of shares is 25 paise for every Rs. 100 or part thereof of the value of shares as per Notification No. SO 130(E), dated 28-01-2004 issued by the Ministry of Finance, Department of Revenue, New Delhi.
Muruganandhan
(Trainee)
(35 Points)
Replied 01 April 2010
is there any penalty if the board accepted the transfer deed, which is not duly stamped?? If yes, which act and section speaks about it?
Please do the needful, its urgent need for me.
Thanks in advance.
Ankur Garg
(Company Secretary and Compliance Officer)
(114783 Points)
Replied 01 April 2010
It is duty of the directors to register transfer of share in accordance with section 108. As mentioned earlier transfer would be void without stamp duty and this is the penalty itself under section 108. There is no specific/apparent penalty for directors as such.
However if someone got stuck due to this violation/negligence of directors he may file a civil suit against the directors. This is my personal understanding.
Wait for other members’ opinion.
Also find attached herewith a very useful file regarding transfer of share. Hope this file would be of some help.
Best Regards
Attached File : 57 transfer and transmission of shares.pdf downloaded: 495 times
VINEET
(learner)
(53 Points)
Replied 01 April 2010
as per section 108 of companies act 1956, the specified event hav no effect because company act required that transfer deed requies the stamps affixed on the transfer dedd
CS MD Osman Akthar
(Company Secretary & CA(Final))
(78 Points)
Replied 09 April 2010
Dear Ankur,
Can the tranferee(Nonresident Company) pay the the Share transfer duty in MH where the Registered office of the company is in AP ? Saher transfer duty is central subject , plz guide,,,
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