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Stamp duty on allotment of shares

Dhara (Company Secretary) (298 Points)

22 April 2016

Dear All,

In Case of allotment of Shares ,stamp duty is required to be paid within 60days of allotmet right ??? and stamp duty should be 0.1% of the total amount right ? i have made on allotment on 24/02/2016 so i need to pay stamp duty by 23/04/2016 right ? and stamp duty needs to be Paied on the GRASS website ?

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14 Replies

csmedha (Company Secretary) (91 Points)
Replied 22 April 2016

Hi Dhara,

Stamp duty to revenue department, Delhi state govt in regard to allotment of share capital is to be paid within one month from the date of allotment of shares/ issue of share certificates.

Hence if allotment is done on 24/2/2016, you need to pay stamp duty by 23/02/2016.

Yes the rate is 0.1% of total amount of shares allotted.

Regards,

CS Medha Bhargava

www.secretarialservices.in

1 Like

Dhara (Company Secretary) (298 Points)
Replied 22 April 2016

In case of stamp duty in Mumbai MAHARASHTRA , i think so itz within 60days ie 2months of d date of allotment/share certificate. I need to make payment through GRAAS website right??

Jatin Bajaj (CS) (2928 Points)
Replied 22 April 2016

DEAR DHARA,

AS PER COMPANIES ACT 2013, COMPANY SHALL HAVE SHARE CERTIFICATES WITHIN 60 DAYS OF ALLOTMENT AND SHALL PAY STAMP DUTY WITHIN 30 DAYS FROM DATE OF ISSUE OF SHARE CERTIFICATES.YES, THE RATE OF STAMP DUTY IS RS. 1 PER 1000 SHARE I.E. 0.1 %. YOU NEED TO PAY STAMP DUTY BY 23.03.2016. AND COMPANIES ACT WILL PREVAIL

Dhara (Company Secretary) (298 Points)
Replied 22 April 2016

What if i have not pay till 23.03.16. Can i pay today ?

csmedha (Company Secretary) (91 Points)
Replied 22 April 2016

You can pay today. But Penalty from 1-10 times as decided by department shall be imposed.

csmedha (Company Secretary) (91 Points)
Replied 22 April 2016

Dear Jatin,

For this case only, what if we put adhesive stamps for payment by cancelling it?

Can this be done to forego penalty provisions?

Jatin Bajaj (CS) (2928 Points)
Replied 22 April 2016

YES, EXACTLY PENALTY FROM 1-10 TIMES AS DECIDED BY THE DEPARTMENT SHALL BE IMPOSED

Dhara (Company Secretary) (298 Points)
Replied 22 April 2016

U SAID COMPANY SHALL HAVE SHARE CERTIFICATES WITHIN 60 DAYS OF ALLOTMENT AND SHALL PAY STAMP DUTY WITHIN 30 DAYS FROM DATE OF ISSUE OF SHARE CERTIFICATES , so i am issuing share certification today ie within 60days of allotment so i have time to pay stamp duty within 30days of issue of share certificate ie till 23.05.16 na ?

Jatin Bajaj (CS) (2928 Points)
Replied 22 April 2016

ya if you are issuing share certificate today, you will have to pay stamp duty by 21st May 2016

1 Like

Jatin Bajaj (CS) (2928 Points)
Replied 22 April 2016

Dear Medha,

Dont have idea regarding adhessive stamp but penalty is 1 to 10 times as decided by department

Jatin Bajaj (CS) (2928 Points)
Replied 22 April 2016

Dear Medha,

I have no idea regarding putting of adhesive stamp in this case. but penalty is exactly as you said 1 to 10 times as decided by the department

Dhara (Company Secretary) (298 Points)
Replied 22 April 2016

yes i am issuing today (22.04.16) ie with 60days from date of allotment (24/02/2016) so i can pay stamp duty within 30days ie (23.05.16) so there is no Q of penalty here

csmedha (Company Secretary) (91 Points)
Replied 22 April 2016

Section 56 (4) states that delivers the certificates of all securities allotted, transferred or transmitted -

- within 2 months from the date of allotment, in case of any allotment of any of its shares

As it talks of delivery and not issue, the date of issue of share certificate should be the date of allotment only.

Regards,

Medha

Dhara (Company Secretary) (298 Points)
Replied 22 April 2016

I have generated challan by making payment of stamp duty online at GRAAS .now what is the procedure ahead?? i have taken offlie payment so would be going to bank for making payment. what documents i need to take to bank for the same and what other procedure i need to follow.