Stamp duty

Others 1433 views 6 replies

My company was incoprated few years before, and few shares were alloted at the time of incopration. Later company issued shares in two different lots and stamp duty were paid as required for the shares alloted. Now when i went to the stamp officer for the certificate, he told me that where is the proof ofstamp duty paid for the first allotment at the time of Incop.

My query is that, i paid certain amount at the time of incop to ROC for incop. Doesnt that count the stamp duty for the share alloted at the time of incop?? If it doesnt count then whatare the procedure of payment of stamp duty for the share issued at the time of incop. And further Answers with refrence of Sections of comany law or any other law related will be appricated.

Replies (6)

When you pay ROC fees, you pay stamp duty on MOA AOA and not on the shares allotted. You pay stamp duty on the shares allotted on the basis of the existing State laws relating to stamp duty. Thus it is essential that you pay stamp duty. What you can now do is purchase revenue stamps and affix the amount of revenue stamps as equivalent to your stamp duty. However, in Maharashtra, revenue stamps are not allowed now. SO if you have old ones you can manage with them. 

Thanks M/s Riddhi, i will be greatful if u can say me the particular section on this coz i have to make this thing understand to my senior n section will help me on that. :)

What will be stamp duty levied on the shares issued pursuant to amalgamation which is in nos 1,31,70,000 for Rs. 5 each ?

Dear Arun,

 

A Share Certificate is an Instrument pursuant to the definition as provided in the Indian Stamp Act, which is as follows:

 

“Instrument” includes every document by which any right or liability is, or purports to be, created, transferred, limited, extended, extinguished or record;

 

Thus, the Share Certificate is subject to payment of Stamp Duty. Now the amount of stamp duty will be decided by the respective state law, for example, Bombay Stamp Act for Maharashtra. 

Originally posted by : CS Prem Munjal

What will be stamp duty levied on the shares issued ursuan to amalgamation which is in nos 1,31,70,000 for Rs. 5 each ?

Dear Prem,

 

It is essential to know the State in which the Registered Office of your company is situated to ascertain the amount of Stamp Duty. 

 

Like under the Bombay Stamp Act (BSA),

 

 

Article 25(da) of Schedule I of BSA states that: 
the stamp duty for conveyance relating to order of the H.C. u/s 
394 of the Companies Act is to be as follows:
- 10% of the aggregate of the Market value of the shares allotted in exchange and the amount of consideration paid for such amalgamation,
Provided that, the amount of stamp duty  chargeable shall not exceed:
◦ 5% of the true market value of immovable property of the transferor company situated in Maharashtra; or
◦ an amount of 0.7% of aggregate market value of shares issued/ allotted in exchange and the  consideration paid for such amalgamation;
Whichever is higher of the two.

the registered office of the company is located at 1, nelson mandela road, vasat kunj new delhi 110 070.

  • the case is : Suzuki Powertrain India Limited is a joint ventur company of the Maruti SUzuki India Limited & Suzuki Motorcorporation Limited (japan) in which 30% is owned by the former & rest is owned by the japanese company
  • Amalgamation was duly approoved by the board of the Maruti Suzuki India Limited on 12.06.2012 in its 213th meet and where consideration was also approoved by issuing new shares 1,31,70,000 for Rs. 5 each in dematerialized form
  • in respect of this case final hearing is listed on 29.01.2013 at Delhi High Court.

Q:- What will be the stamp duty ?

Q:- whether order of the high court / shares issued as consideration, subject to stamp duty ?

Q:- Is there any time limit for depositing such duty, if there is liability ?

Q:- where such duty is required to deposit i.e. address of the stamping authority ?

 


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register