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Stamp Duty on issue of new share cert after split

(Guest)

whether stamp duty is required to be paid again when the new share certificates are issued consequent to split of shares or when the new share certificates are issued at the request of shareholder due to torn condition ??

pl answer mentioning the rule / regulation applicable to it.

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13 Replies

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17848 Points)
Replied 11 July 2009

Yes, in every case of new certificate, it must be properly stamped. And presently the Stamp Duty is Re.1/- per 1,000/- (including premium).

Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 12 July 2009

Yes stamp duty is to be paid again and is Re. 1 per Rs. 1000/- including premium

Malav Shah (Company Secretary and AVP Legal) (171 Points)
Replied 13 July 2009

Friends,

Sorry I disagree. Stamp duty on a share certificate is to be paid only once. No need for stamping when new share certificates are issued after spliting the original one. Merely spliting the share certificates does not attract stamp duty. While issuing new share certificate you need to comply with Companies (Issue of Share Certificates) Rules.

Regards

Malav Shah

Suresh Savaliya (CS ) (62 Points)
Replied 14 July 2009

Yes, malav is right. To the extent possible, old/original stamped certificates to be cancelled and preserved

Suresh
Cs, LL.m

(Guest)

I am not very clear about whether duty shall be paid or not due to divergent views given by the esteemed members.

kamaljeet (C.S) (51 Points)
Replied 16 July 2009

Hi All,

I also agree with Mr.Malav there is no sense of paying the Stamp duty on the Shares Second time for which the Duty has already been paid at the time of the issue of the original Certificate.

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17848 Points)
Replied 16 July 2009

I dont think that the share certificates can be issued without stamp. I am totally disagree.

In my opinion stamp duty is required to be paid.

Purna Salian (Company Secretary) (36 Points)
Replied 16 July 2009

Dear Neha,

Every share certificate should bear a revenue stamp of Re. 1 and a common seal engraved on it. Any time the share certificate is splitted or in case of consolidation of share certificates each such share certificate must bear a revenue stamp of Re. 1 and common seal engraved on it. And signed by 2 directors and a auth. signatory/ company secretary if there is one. No share certificate is valid without it.

Regards,

Purna Salian, ACS

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17848 Points)
Replied 16 July 2009

Dear Neha and Kamal,

Clear provisions are quoted above in the reply of Purna Mam. And in every case the certificate is to be issued whether it is duplicate, split or whatsoever it required to be affixed a revenue spamp of Re.1/- in case the value of certificate is upto Rs. 1,000/-.

meenu (cs) (416 Points)
Replied 18 July 2009

Hi Neha,

There is no need for paying stamp duty on splitting of shares. I hv practically done while consolidation of shares.

Best regards,

Meenu

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17848 Points)
Replied 18 July 2009

Dear Meenu,

It is quite clear that the revenue stamp must be affixed on every share certificates.

meenu (cs) (416 Points)
Replied 20 July 2009

law is silent on this issue. Therefore, it is on the decision of the BOD to pay oe avoid the expenses of Stamp Duty.

Best Regards,

Meenu

Samruddhi (Professional) (28 Points)
Replied 03 February 2016

Whether stamp duty is required to be paid on issue of share certificate if duty is paid on authorized capital at the time of incorporation of company & at what rate.